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.
The firm matches the investment risk characteristics with the client’s liability in a holistic way, whether it is interest rate risk and duration, program and funding income cash flow needs, or liquidity. The team’s philosophy is to then construct portfolios with a yield advantage and minimize outright interest rate timing by implementing yield curve, credit, and sector strategies with undervalued securities or mis-priced securities and sectors.
JKMAM’s philosophy is focused on domestic US and Global sovereign investment grade markets where those investing for income can find broad sector opportunities in deep and often complex markets. The team stays true to the intent of fixed income.
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 risk assessment skills. JKMAM utilizes broker and third party research as well as primary or proprietary information.
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 philosophy is a belief in the power of strategies that emanate from the combined thinking of a team of interdisciplinary seasoned professionals. Furthermore, JKMAM believes in the collective ability to execute a strategy in a timely proprietary way as to protect the anonymity of our clients and their strategy to make money. The business result that comes from this philosophy is the manufacture of repeatable performance.