Income & Fixed Interest investment approach
BTIM offers an extensive range of income and cash capabilities including global fixed interest, managed cash, enhanced cash, credit and enhanced fixed interest. All BTIM’s income and cash portfolios utilise disciplined investment processes that capture benefits for client portfolios. In addition, our strong risk management systems ensure security and stability.
There are three key ways BTIM’s ‘truly active’ approach differs from a conventional active fixed interest manager:
- Our duration trading strategies tend to be shorter in time frame with profits realised more regularly and losses stopped according to strict stop loss criteria.
- Beta (market risk) is separated from alpha (additional return driven by skill). The aim is to produce that base return and then add alpha relative to that benchmark.
- The investment process utilises a broader opportunity set than traditional Australian fixed interest managers to drive alpha. This gives a much more diverse toolkit with which to drive return when compared to most other managers – a toolkit that has been developed over many years’ experience.
An important part of the approach is striving to ensure that each of the strategies implemented are uncorrelated so that the portfolio’s active performance will not be determined by a single, or few, outcomes or themes in the market place. This should deliver a more consistent active return profile over time.