Lombard Odier Investment Managers’ (LOIM) has merged its global and emerging market fixed income teams, combining them into a single unit to fit with the evolution of the bond market.
Traditionally, the fund management industry has kept apart the management of developed and emerging debt portfolios, however the divergence between the two markets has shrunk in recent years.
'We think the rising correlations between bond market performance in emerging and developed markets, together with continuing low yields and the globalisation of trade and financial markets, mean it makes sense to combine the skills of our teams,' the firm said, as it announced the change to investors.
'Given the rapidly-changing dynamics between economies, organisations need to adapt and innovate. We believe this move does just that,' LOIM added.
Gregor MacIntosh, who will lead LOIM's new global and emerging fixed income team, said emerging market risks are increasingly driven by developed market cycles, so a division of the two teams no longer made sense.
'You only have to think of the contagion from the US credit crunch and Europe’s sovereign debt problems,' he pointed out.
The team has also welcomed a new strategist on board following the hire of Salman Ahmed, who brings with him nine years’ investment experience, most recently as head of global macro at EDF Trading.
Prior to this, Ahmed spent three years at Goldman Sachs International where he served as a global economist.
LOIM said the newly combined team will focus on leveraging ideas and insights from the 'constantly changing factors' that determine how sovereign fixed income markets move.
Its objective is to give a broader source of return and lower risk-taking correlation which, in turn, should better generate alpha for clients.