(pictured: Guy Cameron)
Investors are reigning in their exposure to high-yield bonds, according to Cameron Hume director Guy Cameron. But they don’t seem to be going out the risk curve in other areas of fixed income.
Cameron Hume is an Edinburgh-based fixed income boutique set up in 2013 offering highly tailored portfolios taking positions in rates, credit, currency and inflation. A typical portfolio will consist of about 20-30 active strategies as an overlay plus a core portfolio replicating the client’s chosen benchmark.
The active strategies reflect the manager’s view of fundamentals for global markets, which combine to provide an agreed targeted return. The process is ideal for the construction of post-retirement products.
A key client is Sanlam, for which Cameron Hume provides an asset and liability matching service for a pension fund plus other bond mandates.
Cameron is a former partner and head of fixed income of Baillie Gifford. He was visiting Australia last week, for the second time, with business manager Chris Torkington.
Cameron said that while the US Federal Reserve was still saying that there would be another two rate hikes this year, despite the “disappointing” growth numbers announced in February, the market was saying that no rate hikes were likely until about the middle of next year.
John Donovan, managing director of AFM Investment Partners, which represents Cameron Hume in Australia, said big super funds were working hard on dealing with the challenge of SMSFs, because of member leakage, and to keep their members in retirement.
The blend of target-orientated active absolute-return-style strategies and benchmark replication, coupled with a strong almost-collaborative approach with its clients, sets the Edinburgh boutique apart from its global fixed interest competitors.
Cameron said that he and Torkington had been “pleasantly surprised” by the level of interest expressed by Australian super funds and consultants. “We’re committed to coming back regularly,” he said.