The Tasmanian public sector superannuation fund, the Retirement Benefits Fund (RBF), has invested $100 million in the GAM Absolute Return Bond Defensive Fund.
RBF Chief Investment Officer, Dr Ian Lundy, said in the current environment of historically low forecast returns, the fund was looking for strategies with higher alpha potential while giving downside protection against a major market correction and/or rising interest rates.
“With their long-term performance track record, focus on risk control and experience in the absolute return space, this bond fund enhances the risk/return profile of RBF’s diversified portfolios.
“Risk management is demonstrated by the fact this product survived the Global Financial Crisis when a number of competitor products closed,” Dr Lundy said.
RBF, winner of the Small Fund of the Year at the recent Conexus Financial Superannuation Awards, has placed the GAM investment in its Absolute Return investment pool, which is used to construct its diversified member options: RBF Growth, RBF Balanced, RBF Moderate, and lifecycle option, RBF MyPath®.
The Zurich-based GAM, which has $US127 billion in FUM, is an independent, pure-play asset manager offering active investment solutions and products. It is located in 11 countries and employs more than 1,000 staff globally.
GAM’s unconstrained bond strategy is a “go-anywhere” bond fund which, via the use of derivatives, protects the portfolio and still generates returns during downturns. The strategy is managed by the experienced unconstrained global fixed income and currency investors, Tim Haywood, Daniel Sheard and Jack Flaherty.
Investment Director Tim Haywood said: “With its 10-year track record of capital protection across market cycles and superior returns, the unconstrained/absolute return bond strategy continues to win substantial inflows from institutional investors, particularly in the US, Asia and Australia.
“Many clients are looking for alternative type fixed income strategies to help generate yield in today’s low yield environment. We are delighted to be working with RBF,” Haywood said.
® Registered to the Retirement Benefits Fund Board ABN 97 724 593 931.
GAM is one of the world’s leading independent, pure-play asset managers. It provides active investment solutions and products for institutions, financial intermediaries and private investors, under two brands, GAM and Julius Baer Funds. Its core investment business is complemented by private labelling services, which include fund administration and other support services to third-party institutions. GAM employs over 1,000 people in 11 countries with investment centres in London, Zurich, Hong Kong, New York, Lugano and Milan. The investment managers are supported by an extensive global distribution network. In Australia, it is represented by the third party marketing firm Shed Enterprises.
Headquartered in Zurich, GAM is listed on the SIX Swiss Exchange and is a component of the Swiss Market Index Mid (SMIM) with the symbol ‘GAM’. The Group has assets under management of CHF 123.3 billion (USD 127.0 billion)*.
* Source: GAM. Data as at 31 March 2015.
Principal, Shed Enterprises
(02) 9247 8533
RBF has managed superannuation for Tasmanian public sector employees since 1904 and provides superannuation, financial advice and wealth creation services to more than 75,000 members and now manages over $5 billion in investments. RBF has 94 employees and has offices in Hobart and Launceston.
RBF Chief Investment Officer
(03) 6165 1800