Welcome to Perennial Fixed Interest
Perennial Fixed Interest was established in August 1999 in a joint venture between Perennial Investment Partners Limited and Perennial Fixed Interest investment staff.Perennial Fixed Interest is an active boutique investment manager, focussed on valuing the medium term economic outlook and market fundamentals using a disciplined investment management framework to compare "fair value" and market prices. Perennial Fixed Interest employs a number of strategies to add value to investors including modified duration, yield curve management, sector allocation and fixed income security selection.
Perennial Fixed Interest appreciates the important diversification role that fixed interest and cash play in a well balanced investment portfolio.
Perennial Fixed Interest Investment Process
Investment Philosophy
Perennial Fixed Interest is an active fixed interest and cash investment management who access a range of diversified strategies to add value to our investors. Perennial Fixed Interest's principle focus is developing strategies that we believe are in the best long-term interests of our clients. The team is not unduly influenced by the structure of the relevant portfolio benchmark. Perennial Fixed Interest believe that investment markets can often get carried away with the prevailing market sentiment and exploitable fixed income investment opportunities are created for long-term investors. It is often Perennial Fixed Interest's style to implement an investment strategy that is against the current market mood.
Perennial Fixed Interest is strategic in approach, believing the best decisions are made through the careful assessment of economic and market fundamentals over the medium to long term. Conviction and patience are very important elements of Perennial Fixed Interest investment style: the conviction to trust judgement in constructing portfolios and the patience to allow sufficient time for the team's strategies to deliver results.
The combination of these factors deliver superior risk adjusted returns to our investors.
Stock Selection Process
The Perennial Fixed Interest "fair value" investment process involves constantly assessing new information to refine our view of the fair value of interest rates or securities. When the market deviates from the team's assessment, this signals an investment opportunity. There are two principle areas where we seek to enhance returns:
- Active interest rate management and
- Credit management.
Within these two board areas, a number of potential value adding strategies exist:
- Duration/Yield curve management
- Sector rotation
- Security rotation
Through adoption of more than one approach, Perennial Fixed Interest believes that further value can be added, a reduction of risk occurs and investment returns become more consistent over time.
Interest Rate Decisions
Perennial Fixed Interest forecasts the path of growth and inflation over the medium term. Each week the team refines this view based on the latest economic and market releases and each quarter a strategic review is undertaken of the forecasts.
Credit Rate Decisions
Perennial Fixed Interest believes that all securities must exhibit high quality, through the low probability of default and a deep secondary market. The team's focus is on investment grade credit quality.
The final portfolio is constructed according to a strict risk management and compliance regime. The main driver of Perennial Fixed Interest portfolio construction process is the team's desire to deliver a portfolio of quality fixed income and cash securities that will deliver superior risk adjusted returns to our investors.
Perennial Fixed Interest manages the following portfolios:
- Perennial Australian Fixed Interest
- Perennial Cash Enhanced
- Perennial Cash
- Perennial Protected Cash
- Perennial Western Asset Management Global Bond (in conjunction with West Asset Management)
Headed by Glenn Feben, Perennial Fixed Interest consists of six Portfolio Managers, Analysts and an Investment strategist. Perennial Fixed Interest boasts a very stable and experienced team with an average of 18 years investment management experience for each member.
