Fixed income investments play a critical role as part of an institutional investment portfolio. However, investors now face an environment where traditional sources of high quality fixed income such as government bonds, offer low income and may struggle to keep pace with inflation. This, coupled with ongoing economic uncertainty and increased market volatility, and accounting, actuarial and regulatory pressures, will present investors with considerable challenges when making fixed income investments.
In light of this, Makalani has established an experienced team to manage fixed income portfolios against the backdrop of these complexities.
We have developed a distinctive, collegiate process in managing fixed income portfolios using our extensive experience of investing across the universe of available fixed income instruments, both domestically and internationally, and across all stages of the fixed income cycle.
Our investment philosophy is founded on the belief that change creates opportunities and that successful fund management anticipates change.
At the heart of our process lies a discretionary, disciplined and repeatable approach that integrates fundamental, top-down, relative value selection process complemented by a bottom-up, research driven credit process. This allows for the potential add value from a variety of sources, by taking positions on different maturities of the yield curve and asset allocation across different fixed income instruments. From time to time, a bottom-up, security specific analysis helps us recognize bonds that offer the best excess return for the amount of risk taken, and the opportunity to enhance the overall portfolio return.
All of the above is done within tight risk controls that are fully integrated across the investment decision process, and utilising risk tools that support asset allocation and security selection decisions.
Overall, our belief that a pragmatic investment approach that adapts to changing market conditions should provide the opportunity for the fund manager to enhance portfolio returns over a long-term investment horizon and across different market cycles.
- Experienced team with over 60 years collective investment experience, making it one of the most experienced teams in the market place
- Repeatable process across a variety of market conditions
- Own in-depth, forward looking research and idea generation
- Integrated risk management throughout the process at both the portfolio and security levels
- Collegiate approach reflecting the team’s experience across domestic and international markets
- Execution strength through our flat, non-hierarchical structure