Our international fixed income strategy dates back to 1991 and has utilized the same philosophy and process described below. In total, we manage over $3 billion across our fixed income strategies.
The Mondrian International Government Fixed Income Fund seeks long-term total return.
Mondrian is an active, value-oriented defensive manager. We invest in international markets that offer high income in real (inflation-adjusted) terms, measured by a market’s Prospective Real Yield (PRY). We define PRY as the 10 year government bond yield minus Mondrian’s inflation forecast.
High PRY countries offer the highest long-term returns in an investor’s base currency when currencies track inflation differentials.
The investment style has four characteristics:
- The preservation of capital during protracted international market declines
- The production of consistently strong long-term returns
- Diversification benefits in conjunction with other global fixed income managers
- Accuracy in forecasting inflation leading to better performance