Active and Passive Bond Products
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ILIM Passive Bonds
Within our funds we completely replicate the index. Risk management is a key tool in indexed bond investment and we review the risk profile of the portfolio relative to the benchmark on a daily basis. We also ensure that the portfolio directly matches the benchmark in term of the maturity profile of the bonds held. Through this approach we are certain that we can deliver bond returns in line with the benchmark in an orderly and cost effective manner.ILIM Active Bonds
Our active bond team add value in excess of the benchmarks return in the following ways:- ILIM Bond Model: strategically targeting long-term curve anomalies
- Technical Overlay: dynamically capturing short to medium term patterns
- Country / security selection
- Inflation linked bonds
- Non Government Bonds
Our quantitative models are monitored on a daily basis within the fixed income group. Changes (other than marginal movements) by the model require a new optimisation of our portfolios followed by a discussion about the desired Tracking error.