"I've been managing the Yarra Enhanced Income Fund for 22 years now, and what's been really pleasing is that the return target hasn't changed in that 22 years.
We've been aiming for cash plus 230-280 [basis points] and we've delivered cash plus 365. So it's been a great outcome for us and something we're pretty proud of".
The philosophy that Keenan and the Yarra fixed income team employ is one of making sure they're appropriately compensated for the amount of risk being taken.
It has held them and investors in good stead so far, even through the low interest rate period a few years ago. This was a time when "we had to run really hard and work really hard to deliver alpha", says Keenan.
In the following Fund in Focus, Keenan shares more about the fund's philosophy, his current view on the interest rate cycle, how the portfolio might change in a hard landing scenario (not his base case), and the current duration of the portfolio and why it is important.
Timestamps
0:00 - Intro 0:18 - Fund philosophy 0:45 - Interest rate expectations 1:41 - The variability of outcomes 2:43 - What happens if there is a hard landing? 4:29 - Current duration of the portfolio 6:02 - The benefits for investors
Access to regular, stable income
The Yarra Enhanced Income Fund seeks to deliver higher returns to investors than traditional cash management and fixed income investments. Learn more via the Fund profile below, or by visiting Yarra Capital's website.
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My passion is equity research, portfolio construction, and investment education. There are some powerful processes that can help all investors identify great opportunities and outperform the market, and I want to bring them to life and share them with you.
My passion is equity research, portfolio construction, and investment education. There are some powerful processes that can help all investors identify great opportunities and outperform the market, and I want to bring them to life and share them...
My passion is equity research, portfolio construction, and investment education. There are some powerful processes that can help all investors identify great opportunities and outperform the market, and I want to bring them to life and share them...