Jkmilne Asset Management LLC

JKMilne Asset Management creates value for institutional clients through applied attention, provided by a tightly woven team of accomplished listeners, direct communicators, expert investment innovators, and rapid custom solution providers.

While the industry is overwhelmingly dominated by large corporate entities whose resources are widely spread among a great many non-investment functions, as owners, the JKMilne shareholders are deeply committed to actively applying a more direct approach to the management of individual portfolios.

The proposition is simple. It is that 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.

Philosophy


JKMilne Asset Management's philosophy is to actively manage the key components of bond risk to produce higher relative returns at volatility below that of the market. By the very nature of the fixed income class, investors seek stability with a known exposure to the risk variables of return. The components of risk in the market are relative duration to the benchmark, credit spread, and basis risk.

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.

JKMAM's 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.

JKMilne Asset Management develops an investment strategy for 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.

The team is interdisciplinary with an economics discipline based on fundamentals and a proprietary model. The team has extensive experience in credit analysis and risk assessment skills. JKMAM utilizes broker and third party research as well as primary or proprietary information.

A fundamental outlook is established based on economics while portfolio managers contribute intelligence on liquidity, supply, and value opportunities on a secular and opportunistic basis. The analysts examine the global high grade fixed-income and currency movements and supply impact information on proposed trades, sector allocations, and yield curve positions.

Products


Intermediate Active - Benchmarked against the Barclays Intermediate Government Credit Bond Index or equivalent. The account objective is to outperform the benchmark in a given cycle. The portfolio typically invests in securities with maturities of 10 years or less and investment grade credit. The philosophy is to manage risk around the term structure, credit spreads, and basis spread based upon cyclical valuations on an opportunistic basis as well as long-term or secular global basis. The process is a balance of top-down macro and bottom-up microeconomic analysis and risk management. The Macro decision making process includes monetary and fiscal policy as well as the business cycle. Sovereign and corporate debt conditions are key to sector allocations and issuer specific security selection.. The philosophy permits execution that may be detached from the indexes with respect to cash flow, yield structure and sector exposure to capitalize on liquidity, quality, and return opportunities in a rigorous risk management process.

Aggregate Active - Benchmarked against the Barclays Aggregate Bond Index or equivalent. The account objective is to outperform the benchmark in a given cycle. Investments are not limited to index sectors but will typically include securitized securities (mortgage backed). The philosophy is to manage risk around the term structure, credit spreads, and basis spread based upon cyclical valuations on an opportunistic basis as well as long-term or secular global basis. The process is a balance of top-down macro and bottom-up microeconomic analysis and risk management. The Macro decision making process includes monetary and fiscal policy as well as global sovereign and corporate debt conditions. The philosophy permits execution that may be detached from the indexes with respect to cash flow, yield structure and sector exposure to capitalize on liquidity, quality, and return opportunities in a rigorous risk management process.

Intermediate Aggregate Active - Benchmarked against the Barclays Aggregate Bond Index or equivalent. The account objective is to outperform the benchmark in a given cycle. Maturities typically to10 years or less and investment grade only. Investments will typically include securitized notes or bonds (mortgage-backed). The philosophy is to manage risk around the term structure, credit spreads, and basis spread based upon cyclical valuations on an opportunistic basis as well as long-term or secular global basis. The process is a balance of top-down macro and bottom-up microeconomic analysis and risk management. The Macro decision making process includes monetary and fiscal policy as well as global sovereign and corporate debt conditions. The philosophy permits execution that may be detached from the indexes with respect to cash flow, yield structure and sector exposure to capitalize on liquidity, quality, and return opportunities in a rigorous risk management process.

Intermediate Index - Benchmarked against the Barclays Intermediate Government Credit Bond Index or equivalent. The account objective is to match the performance of the benchmark index. The maximum maturity is 10 years or less, investment grade only securities at time of purchase, with a cash requirement 1% or less. Investment sectors limited to those included in the benchmark.

Government/Credit Index - Benchmarked against the Barclays Government Credit Bond Index or equivalent. The account objective is to match the performance of the benchmark index. The maximum maturity is typically 30 years or less, investment grade only securities at time of purchase, with a cash requirement 1% or less. Investment sectors limited to those included in the benchmark.

Absolute Value - The objective of the account is to not lose principal value on a one-year rolling basis. Generally viewed as a short or limited duration product, typical benchmarks would be 90-day Treasury Bills, 1-3 year index or 1-5 year index. Investments are investment grade at time of purchase but can be in any sector (governments, corporate or securitized) and any maturity, although typically 5 years or shorter. No derivatives, shorting, or leverage is used.

Global Strategy - The objective of the account is to exceed the return of a standard or customized global bond index. The current benchmark is the BofA/ML Global Government Bond Index (G7 ex Japan). Investments are typically, but not limited to, Treasury issues of the benchmark countries and currencies (un-hedged). The strategy manages risk around macroeconomic circumstances such as monetary and fiscal policy, as well as growth and inflation prospects. Political stability is a factor in the rigorous risk management process as well.

Global Multi-Strategy - The objective of global multi-strategy is to exceed the returns of a standard or customized domestic or global bond index typically the Barclays Aggregate Bond Index or equivalent. The weightings of the market segments in the account may be market weights or policy-specific weights. The investment in global (non-US) issues or the ability to invest in global issues in the account is what differentiates this composite from Active Aggregate.

Balanced - The objective of JKMAM's balanced portfolio management is to allocate investment funds across multiple asset classes. The three primary asset classes are stocks, bonds, and cash. The allocation can be tactical or strategic long term positions subject to macroeconomic influences and the global business cycle. Within the three primary asset classes allocations may be to domestic or global markets in either passive or active investment strategies or a combination of both. Within the markets JKMAM may allocate between styles and various capitalization families such as small cap equity or large cap growth equities. The firm believes in minimizing turnover and underlying mutual fund fees through selection of managers with long term skill demonstration. JKMAM uses both internal and Wall Street research as well as that of independent firms.

Limited Duration - The objective of JKMAM's Limited Duration product is to take a limited amount of duration or interest rate risk. The benchmark is the Barclay's Capital Treasury 1-5 year Index or equivalent. The portfolio is constructed from a diverse list of investment grade corporate and asset backed debt issues along with US Treasury and Agency issues. The portfolio will take a limited and managed risk against the benchmark, particularly with respect to duration.