GLG Global Debt Total Return

The GLG Global Debt Total Return Strategy provides access to the complex universe of global debt markets through an active strategy managed by an experienced investment team.
  • The investment team is led by Guillermo Osses, who has over 28 years of investment experience. He is supported by a team of experienced co-Portfolio Managers.
  • The strategy seeks to achieve a return in all markets conditions over the investment horizon, with strong risk-adjusted characteristics.
  • Seeks to reduce the draw-down risks associated with both long durations the presence of weak developed market countries, as well as deteriorating EM countries, in the traditional benchmarks.
  • Tactical off-benchmark (Bloomberg Barclays Global Aggregate index) exposure to EM Debt opportunities aims to provide the potential for additional alpha generation and diversification benefits.
  • Active management of duration beta and G10 currency exposure.
  • Fundamental analysis, relative valuation and market positioning considerations are at the core of the investment process which is further enhanced by top-down views.
  • Aims to provide potential for uncorrelated returns versus managers that are, in the team’s opinion, often structurally overinvested in credit or duration (beta) as their main source of value add.

Approach

The team follows a disciplined investment process which seeks to add value by combining deep fundamental research with top down and quantitative screening, complemented by a strong risk management discipline. The process consists of five stages:
  • Global core: After using the composition of the Bloomberg Barclays Global Aggregate universe as a starting point, the team adjusts overall G10 currency exposures, duration, and credit spreads to reflect their macro views over the investment horizon.
  • Top-down analysis: The team considers the potential effects of global developments on the fundamentals and valuations of the opportunity set, and determines return and volatility expectations for the investment universe. Proprietary positioning tools are used to determine the degree of risk concentration across different assets.
  • Implementation of long/short exposures in Emerging Markets debt: The aim is to generate an alternative source of outperformance which is potentially uncorrelated with the typical duration and credit strategies often used by global credit managers.
  • Portfolio Construction: The team develops an initial model portfolio that replicates the benchmark’s behaviour. They will then make adjustments to duration, FX exposures, and main credit group exposures within the universe in response to their expectations in terms of returns and volatility of each of the components of the global credit universe.
  • Stress testing: Finally, the team assesses the sensitivity of the portfolio to different risk factors in order to ensure that the portfolio is within the tracking error, volatility and drawdown targets.
Approach Long-only
Asset Class Credit
Geographic Focus Global
Benchmark Bloomberg Barclays Global Aggregate