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Global Unconstrained Fixed Income

Total return-oriented, flexibly managed global portfolio seeking diversified sources of return by investing across fixed income sectors, countries and currencies.

Strategy Inception

2017

Strategy AUM (USD)

$1.37 B

As of 11/30/2024

  1. Diversified Sources of Alpha

    Seeks diversified sources of risk and return across countries, currencies and sectors by employing long/short (long bias) approach.

  2. Balanced Approach

    Emphasizes sector rotation along with bottom-up security selection.

  3. Emphasis on Total Return

    Seeks low correlations to equities while outperforming the benchmark over a full market cycle.

Investment Outlook

View our latest Investment Outlook for a concise, easy-to-scan overview of current opportunities and risks created by today's global markets.

Strategy Facts
Inception Date
11/01/2017
Total Assets
$1.37 B USD
As of 11/30/2024
Benchmark
BB 1-3 M T-Bill
Target Excess Return
2.5%
Target Tracking Error
<6%
Investment Universe
Developed and emerging market sovereigns, investment-grade and high-yield corporate credit, bank loans, securitized, TIPS, derivatives and currencies
Credit Quality
Flexible

Available Vehicles

U.S. and certain other countries

Separate Account

Risk Guidelines
Duration Limit
0 - 9 Years
Government/Sovereign Sector Limit
0% - 75%
Inflation-indexed Sector Limit
0% - 20%
Investment-grade Corporate Sector Limit
0% - 5%
High-yield Corporate Sector Limit
0% - 50%
Emerging Markets Sector Limit
0% - 50%

We believe publicly available information often does not fully account for security prices. This dynamic in turn creates opportunities to exploit the bond market’s inefficiencies and mean reversion tendencies. By diversifying sources of return across yield curve, country, currency, sector allocation, and securities, and applying a rigorous risk management framework, we believe we can exploit overvalued and undervalued situations.

We pursue opportunities by following a systematic, repeatable process that’s driven by fundamental research. This research-driven approach is complemented by proprietary quantitative models and tools designed to increase the team’s efficiency.

Continuous Risk Management circles around Outlook, Asset Allocation, and Security Selection.

Outlook

Integrates analysis of economy, markets and policies to establish top-down views on global economic growth, inflation, central bank policies and interest rates

Asset Allocation

Considers economic fundamentals and technical rich/cheap sector analysis to determine relative value

Expected return scenario calculations converted to information ratios and ranked by relative attractiveness

Security Selection

Analysts identify attractive issues through deep fundamental research based on sector-specific analytic frameworks

Portfolio managers, analysts and traders collaborate to manage sector exposures, issuer weights and security selection

Risk Management

Risk Management team independently reviews portfolio holdings’ compliance with risk budgets

Proprietary tools help test and monitor portfolio exposures, apply scenario analysis and evaluate potential trades

  • Managed by a veteran team who average more than 30+ years’ experience

  • Features expertise fixed income sectors

  • Complemented by experts in risk analysis and quantitative research

Portfolio Managers

John Lovito avatar
John Lovito

Co-Chief Investment Officer

Global Fixed Income

Firm Start

2009

Industry Start

1986

Charles Tan avatar
Charles Tan

Co-Chief Investment Officer

Global Fixed Income

Firm Start

2018

Industry Start

1994

Lynn Chen, CFA avatar
Lynn Chen, CFA

Vice President

Senior Portfolio Manager

Firm Start

2021

Industry Start

1990

Team Facts
Assets Under Management
$1.37 B USD
As of 11/30/2024
Locations
Kansas City, MO - Santa Clara, CA - New York, NY

Cross-Discipline Support

Client Portfolio Managers
Quantitative Research and Modeling

Takeaways

Icon - Public World Globe

Globally diversified sources of risk and return

Icon - Balance Scales

Balanced approach emphasizing sector rotation and bottom-up security selection

Icon - Bar Chart

Pursuit of positive total returns with low correlations to equities

Composite Performance in USD (%)

1 Month
YTD
1 Year
3 Year*
5 Year*
Since Inception*
Global Unconstrained Fixed Income (gross)as of 11/30/2024
0.93
5.58
8.15
2.64
3.01
2.78
Global Unconstrained Fixed Income (net)as of 11/30/2024
0.89
5.10
7.61
2.20
2.64
2.44
BB 1-3 M T-Billas of 11/30/2024
0.39
4.90
5.39
3.84
2.44
--

*Annualized

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

Quarterly Review not available at this time

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Diversification does not assure a profit nor does it protect against loss of principal.

Risk management does not imply no risk.

This is marketing material. This information is intended to be general in nature and is not personal financial product advice. Any advice contained here is general advice only and has been prepared without considering the investment objectives, financial situation or particular needs of any particular person. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your investment objectives, financial situation and needs. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. American Century nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it.

Sources: Bloomberg Index Services Ltd, FactSet