Fixed income investment strategies

Income Strategies

High-yield & corporate fixed income

Fixed income as a portfolio function

At Evallon Global Investment we believe that fixed income allocations continue to perform as a core function in the management of portfolio diversification. We provide access to high-quality, investable grade fixed income solutions, suitable for a range of investor risk profiles, liquidity preferences and maturity horizon scope.

Flexible selection process

Our fixed income selection process is focused on the delivery of diversified solutions that present investors with satisfactory levels of return in line with specified risk parameters. Whilst many fixed income solutions are often tied to a predetermined maturity period, our underlying philosophy dictates that portfolios are constructed under consideration of both the income and liquidity requirements of individual investors. Maintaining this level of flexibility provides investors with the assurance that their assets are positioned to deliver unrestricted, optimized returns.

Debt mutual funds

Access to a range of third-party debt mutual funds provides a fixed income allocation with greater control over liquidity. Leveraging on the benefits of diversification, allocations are proactively managed around market conditions, interest rate movements and credit fluctuations.

Bonds

Primary and secondary bonds present investors with the opportunity to capitalize on the longer-term benefits of investment grade bond placements. In conjunction with debt mutual funds, high-quality bond positions help to stabilize portfolio performance in line with client specific objectives;

  • Fixed coupon bonds

    Coupon rates are set on issue and deliver a consistent return during a predetermined maturity horizon. Interest payments are accurately forecasted as payments are typically made annually, semi-annually, quarterly or monthly. A low risk strategy, fixed coupon bonds present investors with a reliable source of income whilst preserving principle value.

  • Step-up bonds

    Coupons increase incrementally over time according to the schedule determined on issue. Call issues are often placed on step-up bonds with call facilities activated at intervals during the schedule. Investors unwilling to commit to longer-term fixed bond positions typically accept lower yields over the short-term before being reward with rising increments as the issue progress towards maturity.

  • Zero coupon bonds

    Issues are offered with attractive discounts as interest is paid only as the bond period matures. In some instances, interest is compounded until full value is realized at maturity. By this nature, zero coupon bonds tend be more volatile than other issue types.

Our investment process

Our process

An investment process is the product of an investment approach that prioritizes excellence, combined with an investment philosophy that seeks to generate value at each stage of the management process.
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