Actively managed global bond strategy. Goal is to maximize total return through interest income and capital appreciation

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Tactical Fixed Income Allocation

type:

Fixed Income

Benchmark:

iShares Core U.S. Aggregate Bond

Key facts:

Tactical portfolio allocation across global fixed income sectors

Active management of duration, credit risk, and geographic allocation

Combination of top-down macroeconomic analysis and bottom-up security selection

Key Objectives:

Achieve consistent total return across various interest rate environments

Outperform the global bond benchmark over full market cycles

Provide portfolio stability and income generation

instruments:

Government and corporate bonds

Mortgage-backed and asset-backed securities

Interest rate and credit derivatives

Methodology:

Macroeconomic analysis to guide duration and sector allocation decisions

Credit analysis for individual security selection

Yield curve positioning to capitalize on interest rate expectations

Relative value assessment across fixed income sectors

Regular portfolio rebalancing to maintain target risk and return profile

risk management:

Diversification across sectors, geographies, and credit qualities

Active management of duration and yield curve exposure

Ongoing credit risk monitoring and analysis

Use of derivatives for hedging interest rate and currency risks

Stress testing under various interest rate and credit spread scenarios

strategy benefits:

Potential for enhanced returns compared to passive bond strategies

Stable income stream with opportunity for capital appreciation

Portfolio diversification and risk metigation

portfolio fit:

The Tactical Fixed Income Allocation Strategy typically comprises 30-40% of the EXDS Capital Fund. It serves as a key stabilizer, providing steady income and acting as a counterbalance to more volatile equity strategies.

The strategy's flexible approach allows for tactical adjustments based on changing market conditions, complementing the fund's overall risk management approach.