Fund Manager of the Year 2014: Retirement Product Innovation

23 May 2014


BTIM Defensive and Balance Equity Income 


Payden Global Income Opportunities

BTIM Defensive and Balanced Equity Income has emerged a winner at the Money Management/Lonsec Fund Manager of the Year Award for the best Retirement Product Innovation. 

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With more than five million baby boomers potentially retiring over the next 15 years, BT Investment Management CEO Emilio Gonzalez said he and his team targeted the retirement income space and recognised a shift in clients' needs, particularly after the global financial crisis. 

"[People in retirement] don't want to take a lot of risk but income is important. It's a space that is primed for new products and innovation, which means an element of complexity," he said. 

The team aimed to deliver a low-volatility product with a high level of income paid consistently over time that was also tax-effective. They also wanted a liquid investment where clients could access their money at any time. 

The firm has raised over $400 million in client money in a period of a little over a year, Gonzalez said. 

"Innovation is not easy. It's an easy word and often overused. To create something different that meets many objectives requires complexity."  

Payden Global Income Opportunities from Payden and Rygel qualified as a finalist in the category. Payden and Rygel specialises at the short end of the curve where about two-thirds of its US$85 billion assets are in short duration mandates.  

It invests 75 per cent of the portfolio five years in, and about 60 per cent of the portfolio three years in, head of retail distribution Damien McIntyre said. 

"This sort of emphasis on taking exposures with a relatively short period of time to maturity means that even when you get volatile periods, if your credit selection is right or if you've got the name right, it's going to be re-financed and you're going to get your money back," he said.

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