The Fixed Income portfolio acts as an anchor to the Fund. During volatile market cycles, these assets provide stability and a source of liquidity to take advantage of market dislocations. Trading is done on a daily basis and the Juneau based trading desk has a direct line to all the major banks on Wall Street. Technology has allowed for the portfolio managers/traders to effectively trade bonds with the same speed and efficiency as the largest global asset managers.
KEY PORTFOLIO FIGURES
AS of June 30, 2022
FY23 TARGET ASSET ALLOCATION
The internally managed portion of the fixed income portfolio’s investment philosophy is to make targeted, high conviction macro bets when market dislocations occur while also taking advantage of daily technical factors that present relative value opportunities. We believe that reversion to the mean is a powerful force in the fixed income market and have proven that with a disciplined process and proper risk controls, we can outperform our index over different market cycles.
The performance of the tradable income portfolio over a market cycle shall be measured against the following objectives:
- Total returns commensurate with the level of total risk taken in the portfolio so as to fulfill the role of tradable income in the Fund’s asset allocation policy; and
- Risk-adjusted returns measured using standard industry metrics such as the Sharpe ratio or information ratio that are enhanced relative to the tradable income portfolio’s assigned benchmark.
- Total returns relative to the total returns of the assigned benchmark.
Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.