Following the launch of FIIG’s inaugural bond fund (the fund), in this first article of a three-part series, we delve into the team behind the fund and their deep experience in fixed income markets. They also discuss the philosophy of the fund, which will be further expanded on in the following editions.
Global interest rate volatility has heightened in the last five years as a function of several events, including the Brexit low growth period, initial loose monetary policy and low growth immediately following the COVID-19 health crisis, and the subsequent tighter monetary policy following a surge in inflation in response to excess money supply and geopolitical tension in Ukraine.
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This has
presented opportunities in the fixed income space, with investors achieving
higher returns without needing to take on excessive risk and volatility in
their portfolios. It’s with this backdrop that FIIG is adding the FIIG
Australian Bond Fund to its product offering.
A
trust-based structure with a 100% Investment Grade (IG) Mandate that will
comprise exposure to the key asset sectors of government and corporate fixed
and floating rate bonds, alongside bank debt and Asset-Backed Securities (ABS)
primarily structured as floating rate notes.
The Fund
will contain long-only exposures with no derivatives and will be benchmarked
against the industry standard Bloomberg Ausbond 0+ index. The MIPS portfolios
were managed to a slightly shorter benchmark, so the Fund will be of longer
duration.
To
celebrate this milestone and give readers further insight, we have interviewed
the Fund’s Investment Management Team, comprised of Kieran Quaine, Head of
Portfolio Management, and Megan Romeo, Portfolio Manager. We asked them to
elaborate upon the Investment Strategy they have successfully deployed
historically within FIIG’s other managed service MIPS, and how they will apply
that strategy to the Fund going forward.
About the Portfolio Management Team
The depth
of experience within FIIG’s Fixed Income Funds Management Team cannot be
understated. They have proven success, as evidenced by the history of returns
achieved by the MIPS portfolios since January 2016.
Kieran Quaine: Head of Portfolio Management
Kieran Quaine is the Head of Portfolio Management and responsible for all investment decisions for FIIG’s Managed Income Portfolio Service and the FIIG Australian Bond Fund. He has over 30 years’ experience in the fixed income markets.
After
graduating from Canberra University, he spent a total of 11 years managing
fixed income portfolios across a complex array of mandates valued at several billion
dollars at various AMP entities including AMP Life, Capital, and Henderson, at
the time the largest fixed income manager in Australia. In addition to AMP, he
was a proprietary fixed income trader for Chemical Bank and since 2008 has been
at FIIG in various senior roles including Head of Facilitation, Risk, Syndicate, and since 2016 Head of Portfolio Management.
Kieran is
responsible for all investment strategies executed within both the Trust and
across the standard and customised MIPS products that have a current FUM of
>$300m. He is responsible for product design, mandate design, and will be
the key conduit for the new Trust, achieving a rating by Asset Consultants and
growth expectations toward $1bn under management.
Megan Romeo: Portfolio Manager