Tasmanian public sector super fund, the Retirement Benefits Fund (RBF), has invested $100 million in defensive bonds.
RBF has invested in $100 million in the GAM Absolute Return Bond Defensive Fund in order to protect against major market correction.
RBF chief investment officer Ian Lundy said: “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.”
Mr Lundy said the investment decision was also driven by the need to achieve higher alpha potential in the current environment of low forecast returns.
“Many clients are looking for alternative type fixed income strategies to help generate yield in today’s low yield environment,” said GAM investment director Tim Haywood.
“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.”
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