bond investors who buy bonds and hold them to capture their income, and at the other end, there is the government bond day-trader who would hold a bond for a day and is only concerned with the movement of the bond’s price that day. In one’s Umwelt, for the day-trader who holds a bond for a day, his coupon earns only 0.001634% in a single day and is of little consequence. However, in our Umwelt, a bond with a 6% coupon triggers the image in our minds of pocketing 18% in cash over three years and the coupon’s income is very important. With money markets near zero, this Umwelt is the one we find extremely alluring. So next time you read an article about the bond market, keep in mind why you would be interested in a bond or a bond fund. You may not be in the same Umwelt as a journalist. Are you interested in daily price movements in government bonds? Or political events in emerging market countries? Or like us, do you want to capture a predictable flow of income from large international companies? And when I say I am a bond manager, and you ask me about my views on today’s price movement, or interest rates in 5 years’ time don’t be surprised if I give vement, o you a quizzical look of y o a dog observing a tick. create new senses for humans?’, **David vid Eagleman Ted Talk,’Can we crea March M h 2015 Jeremy He is now the Je my Smouha was a founding member of GAM in 1983. 1 CEO of ATLANTICOMNIUM (UK), which manages several bond funds for CE GAM. GAM is one of the world’s leading independent asset management GA inde groupss focused on active investing. W We manage investments for a gro wide range of clients, including ins institutions, wholesale intermediaries, wid nancial fina ial advisers and private investors. We also support third-party institutions service solutions. ins tions with fund serv
www.gam.com www.atlanticomnium.ch
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