Fixed Income has always been a central part of Investec Asset Management's investment offering.
The capability has been developed over many years to offer innovative fixed income strategies. The team is organised by areas of expertise in interest rates, currency, credit and emerging markets and every area has its own dedicated analysts and dealers. Our investment process achieves a balance between quantitative and qualitative analysis. Sophisticated quantitative tools and systems are used to help analyse and filter each universe – in effect – performing the heavy lifting – while our analysts utilise their skill, judgement and experience to add value in their specialist area.
Investec’s South African specialist fixed income strategies offer investors exposure to the South African bond and money markets through a range of strategies. The strategies are suitable for clients wishing to invest into low risk, single asset class portfolios or retirement funds with members close to retirement. The Investec South African Fixed Income offering is primarily focused on income growth and preserving capital.
Investec Asset Management offers the following specialist South African fixed income strategies.
Investec Flexible Bond
- The Investec Flexible Bond Strategy is suitable for specialist investors requiring a fixed income portfolio focused on outperformance of the benchmark, with significantly reduced focus on controlling benchmark risk.
- Aims to maximise income and grow capital by investing in a spread of interest-bearing assets.
- Targets returns well in excess of the benchmark, measured over five year periods.
- Asset allocation is dedicated to fixed income assets, including listed property.
- Assets include corporate bonds, inflation-linked bonds, listed property and cash.Focus is on reducing volatility of returns and preserving capital.
Investec Credit Opportunities
- The Investec Credit Opportunities Strategy is suitable for clients looking to diversify their existing fixed income exposure away from government bonds and conventional listed credit. Invests in a broad spectrum of credit-related instruments (listed and unlisted) across investment grade and high yield.
- May include illiquid loans that compensate investors with higher yields through an ‘illiquidity premium’.
- Also invests in bonds and loans issued by African (ex SA) companies and banks.
- Structured with no liquidity, but has a target maturity of approximately 7 years after the initial 1.5 year ramp-up.
- Also available as an Africa (ex SA) standalone strategy. It is suitable for local and international clients who wish to access the growth opportunity in Africa without the potential volatility of local currency and equity markets.
- The Strategy is denominated in US dollars and takes no currency risk.
Investec Credit Income
- The Investec Credit Income Strategy is aimed at retirement funds requiring cash plus returns and stable capital values.
- The credit profile is similar to the Investec Corporate Bond Strategy, with only exposure to investmentgrade credit permitted.
- Can invest in the unrated and unlisted market.
- May also allocate 25% to offshore credit, which is used predominantly to take advantage of the higher credit spreads that are available on South African companies and banks in the offshore markets.
- All currency is fully hedged and takes no currency or duration risk, offering a low volatility return, relative to cash.
Other Fixed Income Strategies:
- Investec Corporate Bond
- Investec Triple Alpha
- Investec Money Market
- Investec Stable Money
- Investec Corporate Money Market
- Investec STeFI Plus