Conrad joined Momentum Asset Management in 1994 (then RMB Asset Management) and has been involved in the management of fixed-income portfolios from the start of his career. He was appointed as head of fixed income in October 2007, also taking that role in the new merged entity in February 2011. Conrad and his team currently oversee the management of R80 billion across various fixed income mandates, including for a number of institutional portfolios. He and his team have managed the Momentum Money Market Fund, the Momentum Maximum Income Fund and Momentum Diversified Yield Fund since their inception.
FUND OBJECTIVES AND FOCUS
The portfolio recognises that one of the greater risks facing investors, is inflation. The portfolio seeks to provide investors with consistent capital growth and income after inflation (CPI). The objective of the portfolio is to maintain a strong bias towards fixed interest securities that exhibit a high correlation to inflation at all times. Accordingly the portfolio seeks to provide a low volatility investment option to investors seeking real returns relative to inflation.
The manager's objective is to achieve a consistent 12-month rolling portfolio return of at least CPI(X) + 3%. The portfolio will invest primarily in fixed interest securities, as the total return offers a high correlation to the rate of inflation. The manager may vary the mix of fixed interest securities with the objective of securing for investors' consistent capital growth and income after inflation. The intention is that the portfolio will hold between 35% and 85% inflation linked interest-bearing instruments at all times. Apart from this limitation, the manager is not restrained in managing the portfolio to produce real returns. The manager may therefore take advantage of trading opportunities that arise between yield and duration characteristics in these markets, as well as changing the allocation between bonds, inflation linked bonds and money market instruments depending on interest and inflation expectations.