Deutsche Asset Management (DAM) has restructured its global bond team to integrate its fixed income process across its branch offices.
DAM fixed income managing director Bill Bovingdon says global integration is important in the management of fixed income due to the nature of bond markets.
“Bond markets are so correlated, and the lines between international and domestic bonds are becoming increasingly blurred,” he says.
The changes take place across DAMs Sydney, London and Philadelphia offices, where Bovingdon says identical processes for fixed income are used.
“The London office is the heart of macro decision making,” Bovingdon says, “and co-ordinates all forecasts from around the globe.”
Australian bond team interest rate strategist, Stewart Tan, will join DAMs London global bond team early next month. He will continue with research for the Australian market and will also be involved with the Canadian and Japanese bond markets.
Tan will remain on the Australian Fixed Income Strategy Committee and continue to report to Bovingdon in the Sydney office.
Catharine Peppiatt, currently London based global bond fund manager for Australian clients, will relocate to the Philadelphia fixed income team and will co-ordinate the management of global investment grade portfolios jointly managed between Philadelphia and London.
Peppiatt will continue to work with some Australian clients while deputy chief investment officer of the global bond team, Brett Diment, will become London based fund manager for Australian clients with sovereign debt mandates.
The Philadelphia team is recognised as the credit management centre of execellence, Bovingdon says.
“The US has had a mature credit market for more than a decade,” he says.
Bovingdon says there are two particular benefits resulting from the restructure.
“The key drivers are international for a small economy like Australia, so with someone in the London office we are able to get news first hand, and there is also more chance to influence decision making,” he says.
