Big Queensland-based institution QIC has seen its Global Fixed Interest Alpha Fund defy the general market volatility to post a three year gross return figure of 14 per cent a year and a one year return figure of 22 per cent as at July 31, 2008.
According to QIC, the volatile year has highlighted some of the differences between traditional physical-based fixed interest portfolios and more innovative, nimble approaches.
Commenting on the result, QIC managing director of active management Susan Buckley said the structure of the fund had allowed QIC to capitalise on global fixed interest markets by developing strategies generated through a disciplined investment process.
“We exploit the broadest possible range of fixed interest active return opportunities and underpin this with a transparent and disciplined framework to best control risk,” she said.
QIC said that while traditional funds relied on their ability to manage physical securities, the GFI Alpha Fund utilised the latest available instruments and innovative processes in actively managing global interest rate and credit derivative strategies.