Page 178 - Profile's Unit Trusts & Collective Investments - September 2025

Chapter 9 Fund manager interviews

this goal is unwavering, and we employ a variety of tools and strategies to ensure that we are well-
positioned to meet and exceed our targets.
In addition to managing duration, we also focus on diversifying our investments across different
fixed-income assets, both locally and globally. This diversification helps us spread risk and capitalize
on various market opportunities. By maintaining a balanced and flexible approach, we aim to deliver
robust returns and safeguard our clients’ investments against potential market downturns.
Moreover, our investment philosophy is rooted in a deep understanding of market dynamics and
economic indicators. We leverage this knowledge to make informed decisions that align with our
long-term vision. Our team of experienced professionals work tirelessly to analyse market trends,
identify potential risks, and seize opportunities that can drive the fund’s performance.
Ultimately, our goal is to provide our investors with a reliable and rewarding investment experience.
We are committed to transparency, communication, and excellence in all aspects of our fund
management. By adhering to these principles, we aim to build lasting relationships with our clients
and deliver on our promise of achieving absolute returns and exceeding inflation over time.
Comment on the year ahead and, if possible, estimate the performance of your fund over 2 or
3 years. What are your targets and objectives for the year ahead?
We aim to achieve returns that exceed inflation by 5%, targeting absolute returns around the
10% mark. This objective is intrinsically linked to the trajectory of inflation, the prevailing interest
rate policies, and the trends in global rates. To elaborate, our strategy is designed to adapt to the
dynamic economic environment, ensuring that we remain well-positioned to leverage favourable
conditions for optimal performance.
The interplay between inflation rates and interest rate policies is crucial. As inflation rises or falls, it
directly impacts the purchasing power and the real returns on investments. We closely monitor these
indicators to adjust our portfolio accordingly, ensuring that our investments continue to generate
substantial returns. For instance, in a high-inflation scenario, we might increase our allocation
to assets that traditionally perform well during such periods, thereby protecting and potentially
enhancing our fund’s value.
Interest rate policies, both locally and globally, also play a significant role in shaping our investment
strategy. Changes in interest rates influence the cost of borrowing and the return on fixed-income
assets. By staying attuned to central banks’ policy stances and economic forecasts, we can make
informed decisions about asset allocation and risk management. For example, an anticipated
increase in interest rates might prompt us to reduce our exposure to long-duration bonds and
increase our holdings in assets that are less sensitive to rate changes.
Global rates add another layer of complexity and opportunity. By diversifying our investments
across different markets, we can capitalize on varying economic conditions and interest rate
environments. This global perspective not only enhances our ability to generate returns but also
helps mitigate risks associated with any single market.
In summary, our goal of achieving returns of inflation plus 5%, targeting absolute returns near
10%, is underpinned by a comprehensive and adaptive strategy. We remain vigilant in monitoring
economic indicators and adjusting our portfolio to navigate the ever-changing financial landscape.
Through this proactive approach, we aim to deliver consistent, robust returns for our investors.
Which asset classes do you expect will give the best total rates of return over the next
few years?
Nominal government bonds and inflation-linked securities offer significant value and are poised to
deliver substantial returns in the foreseeable future. These asset classes are particularly attractive
given the current economic landscape and are expected to perform well as they provide a hedge
against inflation and other market volatilities.
Nominal government bonds, backed by the creditworthiness of the issuing government, are a
reliable investment choice. They offer predictable interest payments, making them a stable source
of income. This stability is crucial during periods of economic uncertainty, where investors seek
safe havens for their capital. Additionally, as interest rates fluctuate, these bonds can provide
opportunities for capital appreciation, enhancing their appeal.

176 Profile’s Unit Trusts & Collective Investments September 2025