The Absolute Return Government Bond team, headed by Paul Shanta and Adam Purzitsky, joined Old Mutual Global Investors (OMGI) in early 2015. The team has deep experience in creating and managing innovative investment strategies to help clients address the challenges associated with:

  • a rising awareness that many absolute return strategies are more correlated with each other, and with financial markets, than might reasonably be expected;
  • a global government bond market whose traditional safe-haven role is increasingly questionable;
  • an ever more mature credit cycle; and
  • a fast-changing and increasingly intermediated fixed income environment.

The team employs a unique investment process that enables Adam, Paul and their colleagues to express clearly articulated views on macro themes. It has a number of distinct features and advantages:

  • views are implemented through both long and short positions in the world’s most liquid forward interest rate, inflation and foreign exchange markets;
  • the team believes that that these “default-free” markets offer a vast and under-exploited universe in which to identify mispricing opportunities; and
  • these markets facilitate the expression of macro views in a more precise and targeted way than would be possible through conventional fixed income investment styles.

The approach places great emphasis on maintaining the level of risk in portfolios within defined volatility ranges, while acknowledging that to achieve attractive long-term returns ahead of cash it is necessary to take a meaningful level of investment risk.

The team employs state-of-the-art technology – the result of over 10 years of research and refinement – to help them to identify and visualise the areas of the markets offering the greatest opportunities and valuation anomalies.

The ARGB team consists of eight experienced and highly-qualified investment professionals; members of the team have all worked together in various capacities for many years.

The team manages several portfolios, covering a number of different fund structures and volatility targets.