About this strategy
As a diversified portfolio of government, semi-government, corporate and asset backed securities, this strategy aims to be a good diversifier against the equity or growth exposure of an investor’s portfolio. In managing the strategy, the Manager applies a range of strategies that include duration and yield curve management, sector allocation and individual security selection.
Investment Approach
Fundamentally driven approach
The Team’s investment approach is fundamentally driven and seeks to take advantage of situations where market pricing has become misaligned with economic and investment fundamentals.
Exploiting inefficiencies
The Team believes that investment markets are at times, influenced by non-fundamental factors that cause prices to periodically overshoot their fair value levels. For Australian fixed interest portfolios, the biggest inefficiency that the Team seeks to exploit is the disproportionate impact that short term factors have on the valuation of long-term securities.
Actively managed portfolio
The Team seeks to add value relative to market benchmarks by identifying these situations and constructing portfolios to capture value as these mispricings unwind. In Australian ¬fixed interest, this can occur in the absolute level of interest rates, the shape of the yield curve, the relative value between sectors or the pricing of individual securities.
