CIO Insights

The old Arnott’s catchphrase dates back a century: “There’s no substitute for quality.” It’s simple, and it captures the heart of how resilient businesses, and resilient portfolios, are built. It also happens to be an ideal way to think about markets today, particularly credit markets. The lens to look at everything through is Quality. Because there is no substitute. 

Looking after our investors’ money is at the heart of everything we do, and we take this responsibility very seriously. One of the most important ways we do that is through careful, disciplined liquidity management.

Inflation is often described as the biggest risk in retirement, and when your retirement could last well over 20, 30 years or more, that statement carries weight. This is because inflation does not arrive with a bang, but because it works quietly, steadily eroding purchasing power year after year. Left unchecked, it can turn what looks like a comfortable income today into a constrained standard of living tomorrow. 

Every dollar lent tells two stories. On one side is the borrower, a family buying a home, a business expanding, a developer completing a project. On the other side is the investor, looking for regular income, low volatility, and confidence that their capital is being put to productive use. People love to over complicate things, but it is no more difficult than that.