

Fixed Income Strategy
ContactObjectives and strategy
Objectives
The strategy aims to generate the highest possible yields on bonds in the global markets using ETFs on bonds and other assets that also track macroeconomic conditions and trends.
Target return of 7-10% per annum in US dollars over a long time horizon.
Strategy
Investment strategy
The strategy seeks to capture absolute income in debt markets — interest income and gains in asset value. Investments are made in bonds with different maturities with the use of ETFs, which enhance the yield of the debt portfolio and hedge against potential changes in the macroeconomic backdrop and global central bank policy.

This product is suitable for
Target investor
Investors who are familiar with the debt market and believe, like our team does, that bonds can provide acceptable returns without increasing risk.
ContactObjectives
The strategy aims to generate the highest possible yields on bonds in the global markets using ETFs on bonds and other assets that also track macroeconomic conditions and trends.
Target return of 7-10% per annum in US dollars over a long time horizon.
Strategy facts
Investment terms
Advantages
Strategy advantages
Why it's profitable
Structure advantages
Risks
Risk Management
Description A sharp move in the exchange rate of currencies in which investments are made.
Risk management method The portfolio is denominated in US dollars and all investments are made in dollar assets in the US market.
Description A sharp change in interest rates because of central bank actions, accelerating inflation and/or depreciation of the national currency.
Risk management method We control not only the duration of the portfolio, but also the weight of each individual asset and its duration. Possible risks are monitored every day using publicly available macroeconomic statistics, which can indicate possible actions by the Fed regarding its monetary policy and shed light on the economic outlook, possible changes in fiscal policy and Treasury operations in the market.
Description An asset is unable to be sold quickly and at a price without incurring losses.
Risk management method The portfolio includes only highly liquid assets that are traded in the most capital-rich and liquid market.
Description A borrower fails to fulfill its obligations to creditors (default risk).
Risk management method The portfolio is formed exclusively from high-quality assets (government debt or bonds of corporate issuers with a high credit rating of above BBB). Moving forward, investments in bonds of issuers from other DMs or EMs are possible, but they will be made only after the issuers have proven their robustness and creditworthiness during a period of a strong dollar and high rates. To ensure this, a comprehensive credit analysis will be carried out.
Description A company that has entered into an agreement with you (bank, broker) cannot fulfill its obligations on time and in the due amount.
Risk management method We are constantly working to improve the agility of our infrastructure to reduce counterparty risk, increase the efficiency of our operations and reduce fee expenses. We monitor the news flow regarding our counterparties, periodically audit their credit reports and investigate other risks associated with them (reputational, licensing, political, etc.).
Description High concentration of a single asset; dependence on one counterparty, economic sector or country.
Risk management method The procedures developed over the years involve restrictions on the position limit for each issuer depending on its credit rating and liquidity in the secondary market. Decisions on adding an asset to the portfolio are made by the Investment Committee, and can be accompanied by additional conditions, such as an investment implementation period and stop-loss and take-profit levels. Even when approved by the Committee, a position is not opened for the full limit at once: the high volatility of the markets means the position will be built up gradually, giving time to confirm a hypothesis.
Description Improper or flawed internal processes, employee actions, systems or external events.
Risk management method We are constantly working to improve the agility of our infrastructure to reduce counterparty risk, increase the efficiency of our operations and reduce fee expenses. In addition, we are always fine-tuning our own procedures, looking for weaknesses and making the interaction of employees within the company as efficient as possible.