Government Bonds

Government Bonds form an important part of our fixed income exposure. Developed market government bonds are high quality, liquid investments that offer a long-investment horizon which matches the long-term investment requirements of our pension fund clients. They offer regional diversification benefits and the associated relatively low level of risk also complements the higher risk-return profile of our credit investments and other asset classes. Government bonds are instruments that can be used to effectively cover the sensitivity risk of pension fund liabilities and can also, in some cases, be used as protection against inflation.