Combining R-Labs’s rich heritage in fixed income, quant investing and sustainable investing
Sound offering of systematic strategies in credits, government bonds and aggregate fixed income
Strategies based on R-Labs’s research
A quantitative approach to investing has become a popular option for gaining efficient access to factor premiums in the stock markets, beyond what a market capitalization-based approach can provide. The quantitative approach is strongly on the rise in fixed income markets too. R-Labs has been involved in this development right from the start in the late 1990s with its proprietary research. Combined with our wealth of experience in fixed income and sustainable investing, we now offer a broad range of quantitative fixed income strategies.
Our Quant Fixed Income team applies a rules-based approach to investing in an effort to exploit the market inefficiencies that exist in fixed income markets. This approach aims to deliver superior risk-adjusted returns and often provides style diversification with traditional active managers. Many clients use quant fixed income strategies as an alternative to passive ones, thanks to their transparent nature, cost efficiency and outperformance potential. Furthermore, their systematic nature bodes well for incorporating various kinds of sustainability objectives across portfolios.
Our research is primarily focused on the maintenance and enhancement of factors and variables, and their combination in quantitative models and portfolio construction algorithms. Furthermore, we focus our research on illiquidity modelling, risk modelling and performance attribution. Our track record began in 1998 with the introduction of our Global Dynamic Duration strategy, making us one of the pioneers in systematic fixed income solutions.
All research is conducted by our quantitative researchers in collaboration with portfolio managers and analysts who provide practical knowledge and experience in fixed income investing. The main source of information in the research process is academic research. Our Quant Fixed Income team also contributes to the academic literature, with research papers on the existence of factors in corporate bonds and government bonds to name but a few.
The Quant Fixed Income team is responsible for the portfolio management and research activities for all of R-Labs’s quantitatively managed fixed income strategies. It is a seasoned team, consisting of 15 dedicated PMs and researchers with strong academic credentials. The team manages eight capabilities in various strategies and numerous customized mandates. It builds on R-Labs’s fundamental fixed income expertise in research, execution and sustainability and applies human oversight to identify risks beyond the scope of the quantitative models.
A lot of knowledge sharing takes places within the Quant Fixed Income team and with other teams such as Quant Equities and the Sustainability Center of Expertise. This includes research ideas, factor and variable definitions, database maintenance, sustainability integration and code development.
Thanks to their systematic nature, quantitative fixed income strategies bode well for integrating sustainability targets such as climate or SDGs Patrick Houweling
These strategies offer balanced exposure to the low-risk, quality, value, momentum and size factors in the credit, high yield or aggregate market combined with an improved sustainability profile.
Our Dynamic Duration strategies apply highly active duration management in the three main government bond markets to generate alpha, aimed at more sustainable issuers.
The strategy offers low-cost and highly liquid exposure to the global high yield credit market and applies dynamic market timing with the aim of generating outperformance.
All strategies have a global universe but can be customized to focus on a specific region.
Knowledge built through decades of experience and in-depth issuer research
This has been a core expertise for us for decades
Taking a rules-based approach to investment management
