Our process is founded on strong macroeconomic and fundamental research, country, sector and security allocation, surveillance and an unwavering focus on risk management. Through top-down analysis, the portfolio manager examines the key drivers of the Asian bond markets and studies the strengths and weaknesses of each country’s macroeconomic fundamentals, valuation and technical trends to form their country and currency views.
Credit research is a key part of the overall investment strategy for our fixed income portfolios. The credit analyst generates bottom-up credit investment ideas within the top-down strategy formulated by the team. Each security is monitored by our surveillance platform until its divestment or maturity.
The idea screening process builds from the outcomes of the top-down and bottom-up analyses. This is where investment recommendations are put forward. Investment ideas generated from top-down and bottom-up analyses are refined under the portfolio construction stage to achieve each of our client’s objectives. Finally, the portfolio review process entails a constant reassessment of macroeconomic trends and company specific risks to ensure that our investments are still valid and remain within compliance of our client’s objectives.
We take a thorough and disciplined approach towards risk management. Risk is managed through independent, detailed analysis of portfolio risk and characteristics, as well as performance attribution and peer group analysis.
The continuous flow of feedback is crucial in monitoring whether:
- risk levels are appropriate
- risk characteristics reflect the portfolio manager’s intentions
- return sources are as expected
The Asian fixed income team, headed by Koh Liang Choon, is one of the largest dedicated Asian fixed income teams based in Singapore, with a strong appreciation for the idiosyncratic characteristics of individual countries and sectors.
We have over 30 years of experience in managing fixed income strategies. In 2005, we were the first fund manager to launch an exchange traded Singapore bond index fund and in 2010, we were one of the first to launch an offshore RMB bond fund.
Our local presence provides valuable contacts with and insight to central banks, policy-makers, think tanks and issuers in Asia. This helps us form a good basis for the evaluation of countries, sectors and markets within the region and allows us to identify and exploit market inefficiencies.
With the support of the credit research team, the fixed income portfolio managers manage and advise portfolios in Asian local currency fixed income, Asian credit as well as active and passive Singapore fixed income strategies.
The credit research team conducts over 800 dialogues with companies each year via direct company visits, road shows by issuers, presentations or teleconferences. It also conducts an internal rating of issuers and their respective issues when a credit rating is required by investment guidelines and the issuer is not rated.
Koh Liang Choon
Head of Fixed Income
Nikko AM Asia
Liang Choon leads a team of experienced analysts and portfolio managers, responsible for managing active Asian fixed income portfolios covering Asian local currency fixed income, Asian credits and Asian currencies.
He has approximately two decades of experience in the financial industry, of which 11 years were in managing Asian and Singapore fixed income portfolios. He was most recently with APS Komaba Asset Management, where he was responsible for managing their institutional Asian fixed income mandates.
Liang Choon holds a Bachelor Of Business Administration with majors in Finance and International Business from Simon Fraser University, Canada and a Master Of Science (Applied Finance) from the National University of Singapore. He is also a Chartered Financial Analyst charterholder.