AUI adds sixth JV with new boutique Altius

Australian Unity Investments (AUI) has formed its sixth joint venture, this time with a fixed interest team led by former Aberdeen Asset Management chief executive Bill Bovingdon.

The agreement with the new fixed interest boutique manager, Altius Asset Management, is AUI’s second fixed interest joint venture — the first being with Vianova Asset Management.

Altius plans to launch its Australian fixed interest strategy in the second quarter of the year, which Bovingdon said would take a diversified approach to investing in credit, cash and government bonds.

By ‘diversified’, he said he meant the fund would combine both credit and duration strategies to help manage risk and generate stable returns in all environments.

“Most fixed interest managers focus on either a thematic or credit approach, both of which have their benefits. But in our view, a diversified approach provides the greatest flexibility to take advantage of opportunities in the market,” said Bovingdon.

As for the future of the boutique, Bovingdon said that he saw offshore markets as a possibility in the longer term.

“Initially it will be very limited, as the flavour of the portfolio will definitely be an Australian bond portfolio. But [offshore markets are] something that we see as a build-out for the business,” he said.

“In particular, we have a very positive view of Australia as a financial centre for the region, and as a consequence we also think this is a good springboard for us to look at opportunities in Asia.”

The Altius team will also include Chris Dickman and Gavin Goodhand as senior portfolio managers.

Dickman joined the team from ANZ Bank where he was director of the funds management and public sector business.

Goodman has held roles at Aberdeen Asset Management and Deutsche Asset Management. He first worked with Bovingdon at Treasury Corporation of Victoria.