Who We Are
JKMilne Asset Management is an employee owned firm that specializes in the core fixed income investment world. We are a tightly woven team of rapid custom solution providers with over 40 years of industry experience.
As owners, we are deeply committed to actively applying a more direct approach to the management of individual portfolios. The proposition is simple; we must create a reason to do business with us. There are those that have entrusted us based on our reputation, ability to maintain a culture of shared success, and the ability to execute complex solutions for clients with purpose, mission, and vision.
How We Invest
We believe successful core fixed income investing for your portfolio requires being aware of, and having processes for, managing portfolios in a way that takes your individual needs into account. Your core fixed income portfolio allocations should be made to managers who have within their investment methodologies, processes that you’ve heard, read — and you understand — for actively monitoring your investment risk/return exposures and making portfolio adjustments on your behalf in a way that prudently manages your risk and exposures, while providing for capital preservation and growth.
The firm matches the investment risk characteristics with the client’s liability in a holistic way, whether it is interest rate risk and duration, program and funding income cash flow needs, or liquidity. The team’s philosophy is to then construct portfolios with a yield advantage and minimize outright interest rate timing by implementing yield curve, credit, and sector strategies with undervalued securities or mis-priced securities and sectors.
Our philosophy is focused on domestic US and Global sovereign investment grade markets where those investing for income can find broad sector opportunities in deep and often complex markets. The team stays true to the intent of fixed income utilizing a combination of a top down view of global economies and a bottom up approach to issuer and sector specific value. Key philosophical risk measures are discussed and examined; they are yield curve, credit spread, and basis risk. Every client has different liabilities to fund, so we construct and manage customized high credit quality fixed income portfolios.
Our asset allocation decision making is shaped by our current snapshot view of holdings in the client portfolio and our projections of near-term changes in interest risk. We select corporate bond issuers for a client portfolio based on our in‐house research and internally ranked Approved Issuers universe. This is our short list of what we believe to be the best in class investment grade corporate bond issuers. Our analysis takes into account independent research, analyst reports, and, our determination as to which issuers appear to currently offer the best risk/return and which ones of those have a lower likelihood of price deterioration.
We believe in the power of strategies that emanate from the combined thinking of a team of interdisciplinary seasoned professionals and the collective ability to execute a strategy in a timely proprietary way as to protect the anonymity of our clients and their strategy to make money.
Whether you choose Active Aggregate, Intermediate Government Credit, Treasury Index, All-Floating Rate Opportunistic or a custom portfolio strategy our process is the same.
Successful core fixed income investing requires being aware of, and having processes for, managing portfolios in a way that takes these three points into account:
First — Fixed income portfolio management is not a ‘buy and hold’ activity. Bond holdings are most often bought on the secondary market and sold before they reach maturity — and this is where part of your return comes from. Active management is required in pursuit of maximizing returns while mitigating risk.
Second — Profitable bond investing is not all about yield; it is about price plus coupon: total return.
And Third — Price deterioration, rather than potential for default, is the key investment risk exposure impacting potential return in fixed income investing in investment grade corporate bonds.
John K. Milne, CEO
JK Milne Asset Management