INVESTMENT PHILOSOPHY AND APPROACH
Colchester Global Investors is a value-oriented manager. At the heart of the Company's philosophy is the belief that investments should be valued in terms of the income they will generate in real terms. The investment approach is therefore based on the analysis of inflation, real interest rates and real exchange rates, supplemented by an assessment of sovereign financial balances. Portfolios are constructed to reflect those opportunities with the greatest relative investment potential for a given level of risk.
Sovereign
bonds form the majority of Colchester Global Investors' portfolios. Colchester
Global Investors eschews corporate credit, believing instead that its broader
sovereign opportunity set provides sufficient diversity and return potential
to add value without resort to lower credits. The investment opportunity
set currently includes - among others - the domestic sovereign debt of
the higher quality smaller countries such as Norway, New Zealand, Poland
and Singapore. Colchester Global Investors seeks also to manage currency
risk in a primarily defensive fashion, but is keen to take full advantage
of long-term currency valuation extremes.