Asset Management

JKMilne Asset Management develops an investment strategy for fixed income utilizing a combination of a top down view of global economies and a bottom up approach to issuer and sector specific value. Key philosophical risk measures are discussed and examined; they are Yield Curve, Credit Spread, and Basis Risk.

The team is interdisciplinary with an economics discipline based on fundamentals and a proprietary model. The team has extensive experience in credit analysis and is highly skilled in risk assessment.  JKMAM utilizes broker and third party research as well as primary or proprietary information.  Eighty percent of the primary research is obtained from brokers, dealers, and third-party economic and credit research firms. Twenty percent of the research is derived from primary research and models at JKMAM.  Internal research is constructed from Bloomberg, SEC filings, Statistical Economic output from the U.S. Commerce Department, and the Federal Reserve Bank of St. Louis.  External research is provided by Bloomberg market information, CreditSights, Maria Fiorini Ramirez, Inc. (MFR Inc), Barclay’s Capital, Goldman Sachs, Morgan Stanley, and Bank of America/Merrill Lynch.

A fundamental outlook is established based on economics while portfolio managers contribute intelligence on liquidity, supply, and value opportunities on a secular and opportunistic basis. The analysts examine the global high grade fixed-income and currency movements and supply impact information on proposed trades, sector allocations, and yield curve positions.

The team consolidates the above input on a weekly basis and utilizes the flexibility to meet and interact on an ad hoc basis. A published strategy summary report is the output and is executed by the traders based on best execution practices.

JKMilne Asset Management’s philosophy is to actively manage the key components of bond risk to produce higher relative returns at volatility below that of the market. By the very nature of the fixed income class, investors seek stability with a known exposure to the risk variables of return. The components of risk in the market are relative duration to the benchmark, credit spread, and basis risk.