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Strategy Overview

The Global Opportunistic Fixed Income strategy seeks global bond investments offering the best combination, in our view, of high real yield and attractive fundamentals given our macroeconomic outlook. This value-based strategy maintains a primary focus on sovereign debt with a goal of unlocking the potential performance benefits of mean-reversion tendencies in interest rates and currency valuations. To avoid the inefficiencies of global bond benchmarks, the team takes a benchmark-agnostic approach and limits investment to only the 10-20 countries and currencies we consider attractive investments. For over two decades, the Global Fixed Income team has achieved its risk-adjusted returns by implementing a process of country rotation through the broad global fixed income universe. The strategy allows the investment team wide latitude and flexibility to opportunistically own non-investment-grade credit and sovereign debt. 

 

Strategy Profile

 

 

Key Stats*

Strategy AUM 1 $12,275.7
Inception Date January 1, 1998
Current Yield (%) 5.23

Philosophy

Objective

The strategy seeks to generate outsized long term return and alpha.

Universe

Our investible universe is comprised of the sovereign debt and currencies of countries in the FTSE World Government Bond Index (WGBI), non-WGBI markets rated A- or better by a nationally recognized statistical rating organization, and emerging market debt rated BB- or higher. In addition, we may tactically invest in investment grade and high yield corporate debt and mortgage-backed securities.

Investment Process Summary

We apply a top-down, value-driven process when structuring Global Opportunistic Fixed Income portfolios. Real (inflation-adjusted) yield is our primary measure of value. Currency valuation is next in importance, as the real yield must be captured in the investor's local currency (dollars for U.S. investors and euros for many of those in Europe, for example). We focus on appreciating, undervalued currencies and overvalued currencies that can be hedged. Inflation trends, political risks, monetary trends, and business cycle and liquidity measures are also considered. We typically concentrate investments in 10-20 countries that appear to offer the best total return potential.

Duration Management

We concentrate investments where we believe value is greatest; as a result, our portfolios tend to have an intermediate- to long-duration bias when real interest rates are high. Greater interest rate exposure is assumed in countries with more value, and positions are established along the yield curve where we find the best risk/reward profile. Portfolio duration generally ranges from 1 year to 10 years.

Country Rotation

We believe that concentrating investments in the markets with the highest potential returns—that is taking above-average country risk—actually reduces overall risk. Secular trends, political and monetary conditions, and business cycle risks are considered in determining the likelihood that we can capture the value we see in real interest rates and currencies. Each factor contributes to our country weighting decisions.

Currency

Currency and country decisions are intertwined. We seek to invest in bonds with high real yields that are denominated in appreciating currencies. We hedge our currency exposure in countries with high real rates but overvalued currencies.

Issue Selection

Within the desired country and currency, security selection is based on yield-curve analysis, desired duration, and the wideness of credit spreads relative to government issues. Allocations to high yield issues and emerging markets are made on a tactical basis.

 

At a Glance

  • Primary Benchmark: FTSE World Government Bond Index (unhedged) or other global bond benchmark, as specified by client direction
  • Universe: The sovereign debt and currencies of countries in the FTSE World Government Bond Index, as well as the investment-grade corporate bond and mortgage-backed securities markets in those countries. We may also invest, to limited degrees, in emerging market and high yield debt, as well as in non-index countries rated A- or better by a nationally recognized statistical rating organization
  • Real yield is our primary measure of value, followed closely by currency valuation. Inflation, monetary trends, political risks, the business cycle, and liquidity measures are also considered
  • We strive for efficient duration management and country rotation (driven primarily by currency considerations) to add incremental value
  • Investments typically are concentrated in 10-20 countries that we believe have the best total return potential

Portfolio Managers

David F. Hoffman, CFA

Managing Director & Portfolio Manager

Jack P. McIntyre, CFA

Portfolio Manager

Anujeet Sareen, CFA

Managing Director & Portfolio Manager

Paul Mielczarski

Head of Global Macro Strategy & Portfolio Manager

Brian L. Kloss, JD, CPA

Portfolio Manager

Tracy Chen, CFA, CAIA

Portfolio Manager

View Full Fixed Income Team

Performance*

Characteristics*

Videos

1. What Is Your Outlook for the Global Economy? (0:06)
2. What Is Your Outlook for Global Currency and Bond Markets? (1:59)

Global Macro Overview

3rd Quarter 2025 | October 14, 2025

Head of Global Macro Strategy & Portfolio Manager Paul Mielczarski says the global economy has held up better than expected and offers his outlook for the rest of the year.

Download Slides | Read Transcript

Paul Mielczarski

Head of Global Macro Strategy & Portfolio Manager

Investment Options

Available Investment Options

Global Opportunistic Fixed Income
Separate Accounts
BG Global Opportunities Fund
U.S. Mutual Funds/ETF
FTGF Brandywine Global Opportunistic Fixed Income Fund
Cross-Border Irish Funds
Additional Non-U.S. Local Funds are available. Please contact
[email protected] for more information
Non-U.S. Local Funds

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Risk: All financial investments involve an element of risk. Past performance does not guarantee future results. The value of investments and the income derived from investments will fluctuate and a loss of principal can occur.

Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial operations outside of the U.S. can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include market/currency fluctuations, withholding or other taxes, trading, settlement, custodial, and other operational risks, and less stringent investor protection and disclosure standards in some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets may perform differently from the U.S. market.

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Fixed income securities are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. High yield and lower-rated fixed income securities involve greater risk than investment-grade securities. Asset-backed, mortgage-backed or mortgage related securities are subject to additional risks such as prepayment and extension risks. High yield bonds possess greater price volatility, illiquidity, and possibility of default.

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Past performance is no guarantee of future results.