Strategist / Senior Strategist recruitment
The Future Fund was established in April 2006 by the Australian Government to make provision for the Commonwealth’s unfunded superannuation liabilities. The balance of the Future Fund was AUD 77.0 billion at 31 March 2012. The Future Fund’s Board and management are also responsible for the investment of Nation-building Funds which collectively amounted to AUD 15.2 billion.
The Future Fund pursues a holistic approach to asset class allocation. As a part of this process the Strategy Team advises on portfolio design and management across all asset classes with the aim of achieving the mandated return and risk objectives of the Fund. To do this the Strategy Team:
- Assesses the macroeconomic environment, looking at both cyclical and structural (or thematic) influences to create a series of forward looking scenarios;
- Performs top-down market value, risk premia and macro factor analysis alongside a bottom up asset class specific analysis aimed at advising the Board on the overall portfolio risk profile consistent with the Fund’s mandate;
- Advises the Board on the appropriate portfolio construction – both physical and synthetic;
- Undertakes scenario planning analysis in an effort to build a robust portfolio.
This work is supplemented and supported by capital markets research. Strategy also facilitates the implementation of investment strategies, including derivative overlays, and works with other sector or asset class investment teams to translate their investment activities into asset class and factor risk and return expectations.
Given these responsibilities, all members of the Strategy Team are required to be generalists and expected to have a broad knowledge of investing suitable to their position: from an understanding of long- and short-run economic relationships through to asset pricing and portfolio design and in some cases implementation.
Role overview
The Fund manages its market risk and return profile at a whole of portfolio level. As input into this process the Strategy Team:
- monitors global market, macroeconomic and policy developments;
- carries out its own macroeconomic forecasts and related scenario analysis;
- undertakes extensive portfolio and asset class modelling; and
- implements various linear (swaps, forwards, and futures) and non-linear or asymmetric (option) overlays.
The Strategist will be responsible for undertaking the first of these activities and will also be expected to assist with the development of macroeconomic forecasts, scenario development and the review of longer-term secular themes. Experience with portfolio and asset class modelling and/or the implementation of ideas will be an advantage. The Strategist will work very closely with other senior members of the Strategy Team, including those responsible for overall portfolio modelling and overlay design and implementation and will be expected to play an active role in advising on overall portfolio risk settings.
The Strategist will also be expected to assist the Fund’s sector (asset class) teams in assessing asset class and more general portfolio risks at the point of origin when appropriate. A key part of the role will be helping to integrate the top down macro with the bottom up sector team analysis and to identify the implications for overall portfolio construction.
More generally, the Strategist will be expected to be able to think holistically about how the macroeconomic environment and developments in capital markets impact the available investment opportunity set, and actively promote the search for better risk-adjusted investment opportunities.
You will need to have the following skills and attributes
- At least 7-10 years experience as a financial market strategist or economist. Candidates with a macro trading or appropriate macro focussed marketing background and broad product knowledge will also be considered. Experience will likely have been gained at an investment bank or an institutional fund in an international financial centre. Policy experience is an advantage. The successful candidate will preferably have a postgraduate degree in economics, finance or equivalent.
- An ability to turn macro and market views into actionable capital market transactions, and a willingness to recommend portfolio level changes.
- Demonstrated ability to carry out projects which could lead to portfolio, process, or systems changes.
- An ability and willingness to train junior colleagues.
- A self-aware, confident nature, able to make well reasoned and structured arguments in the absence of perfect information.
- At ease in a dynamic team-based environment where collaboration and robust discussion is encouraged.
- Proficient knowledge of Microsoft office packages, Bloomberg and Datastream. Knowledge of Matlab and VBA, although not necessary, would be an advantage.
A full position description is available at www.futurefund.gov.au/careers.