Short Term Investments and Global Credit

Our experienced Short Term Investments and Global Credit Team has an active investment management style that incorporates a detailed macro understanding of factors driving money market yields. Our investment decisions are made based on the opportunity set that offers the best value for risk.

We build and manage highly diversified global corporate bond portfolios that capture the credit premium offered in the market, while avoiding permanent capital impairment. Through our extensive credit research process, our analysts identify ESG risks during their bottom-up credit research.

Investment Philosophy and Approach

The key to our investment philosophy is 'Value for Risk'. We believe that fixed income and credit markets are sometimes inefficient as market participants approach investing with different time frames and motivations. By adopting a long-term viewpoint, we are able to take advantage of short-term price movements to generate value for our clients. We know that to generate returns we need to take on a degree of risk. As a result, we evaluate and measure risks carefully to make sure our investors are compensated.

For our credit-based strategies, we also believe that returns are asymmetric over the medium term and that avoiding the losers is more important than picking the winners. For this reason we construct highly diversified, benchmark unaware portfolios that seek to balance returns with lower tail risk.

Team Profile

Our Short Term Investments and Global Credit Team is led by experienced investor Tony Togher. Tony has been with First State Investments for almost 30 years and has been leading the team since 2002. The broader team consists of a number of experienced cash and credit investors, with wide-ranging market experience. The team is further supported by other relevant global teams, including our credit research, dealing and business resources teams.

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20
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11
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Stewardship and ESG Integration

In the Short Term Investments and Global Credit space, the Environmental, Social and Governance (ESG) assessment most often comes through its impact on the internal credit rating (ICR) provided by the Credit Analysts via our Credit Research process.

The portfolio management team then use this to assess relative value when compared to other similarly rated issuers. For example, ESG considerations in the financial industry have led to our internal rating for some issuers being lower than that of the external rating agencies. As a result, the risk-reward assessment has often been decided such that we are underweight that sector in our active global credit portfolios.

The ICR is also used by the credit portfolio managers when making their decision to buy or sell securities and to determine position sizes for the funds that we manage.

Investment Information and Performance

Performance - Cash

Portfolios outperforming their relative benchmark over three years* 
(Weighted by size of fund)
100%
Weighted average of outperformance* 
(Three years annualised. Weighted by size of fund)
0.30%
Absolute return over three years 
Wholesale Premium Cash Enhanced Fund**
2.81%

Performance and investment characteristics are as at 31/12/2016
Performance is quoted pre-fees and in $A terms. Investors in other currencies will be subject to exchange rate fluctuations which will affect investment returns.
Past performance is not indicative of future performance.

Source: First State Investments
*Includes all funds and segregated accounts managed by any entity within Colonial First State Global Asset Management. Not all funds and accounts are registered or available in all jurisdictions. This may not be representative of your jurisdiction.
**This Fund has been selected as representative of the strategy but this may differ across the other funds and accounts within the same strategy.
Please follow this link for information on how our RI and Stewardship Measures are calculated. 

Performance - Global Credit

% of the team’s portfolios outperforming their relevant benchmark over three years * 75.56%
Weighted average of outperformance*
(Three years annualised. Weighted by size of fund)
1.31%
Absolute return over three years
Global Credit Income Fund**
4.49%

 

Global Credit Investment characteristics - Cash

Global Credit Sector Breakdown

Short Term Asset Type Breakdown

Short Term Ratings Breakdown

Source: Calculated by BRS Aladdin using data from Moody’s, S&P and CFSGAM

Source: First State Investments

Please follow this link for information on how our RI and Stewardship Measures are calculated.