Smarter Money Investments Pty Ltd (SMI) was founded in 2011 by Darren Harvey, Christopher Joye, their team of analysts, and a leading distribution partner to focus on absolute return fixed-income strategies in concert with strategic distribution partners.
Smarter Money Investments (SMI), and its sub-investment manager Coolabah Capital Investments (CCI), believes that there are unique opportunities to actively exploit pricing inefficiencies in the Australian cash and fixed-interest markets applying a fusion of bottom-up and top-down quantitative valuation analysis combined with qualitative due diligence and research. This encompasses sophisticated statistical modelling techniques.
SMI/CCI brings a robustly "active" investment style, which is common in other asset-classes like equities, to the much more passive and index-orientated fixed-interest domain. More specifically, SMI/CCI generates consistent alpha through a number of methods, including but not limited to:
- Negotiating superior risk-free interest rates;
- Exploiting inefficiencies in the short-term yield curve without taking capital risks;
- Using a highly contrarian yet very dynamic asset-allocation strategy between cash and floating-rate notes depending on the relative value available in each sector; and
- Finally, and most importantly, via active asset-selection of mispriced securities using top-down and bottom-up quantitative valuation techniques that will produce risk-adjusted excess returns in the future.
SMI/CCI believes that total returns are just as important in fixed-interest as they are elsewhere notwithstanding the "yield" and hold-to-maturity focus of traditional fixed-income managers. SMI is also committed to attracting and retaining top talent to help hunt out risk-adjusted opportunities, which in turn requires appropriate incentives that are aligned with results delivered to our investors.
SMI's business has been built from the ground-up with a desire to bolster risk management by incorporating independent Responsible Entities, independent Fund Administrators, a unique downside directed credit research process, and industrial-grade pre-trade risk and compliance assessment systems. This is a summary only.