With a background in engineering and commerce, James Wilson began his career in global markets, gaining early exposure to FX trading before moving into fixed income. Today, he applies a disciplined approach to portfolio management, navigating market volatility and identifying key themes driving global bonds. From managing risk through a unique scorecard approach to capitalising on alpha-generating opportunities, Wilson shares his perspectives on today’s biggest market challenges and the often-overlooked threats.

1. How did you get started in fixed income investing?

I completed an Engineering/Commerce degree and my first job out of university was as a Global Markets graduate at an Australian bank. This included rotations through the sales and trading desks and I landed my first permanent seat in a dealing room on the FX trading desk in Melbourne. A year later, an opportunity arose to move onto the fixed income desk in Sydney which was very appealing to me, given that the fixed income markets are the bedrock of global financial markets.

2. What’s a threat that you think is being overlooked by markets?

The market is seemingly quite comfortable with the pricing of different asset classes. Equities are pricing a soft landing, bond markets are pricing a recession. One thing that this does assure is increased volatility for 2025.

3. How do you manage the portfolio to capitalise on opportunities, while also managing risk?

The challenge for any portfolio is to be resilient across varying market conditions while remaining scalable. At Jamieson Coote Bonds, we employ a scorecard approach, incorporating macroeconomic factors, technical analysis, and bond supply and flow dynamics to build confidence in the sizing and timing of duration positions. Our scorecard balances both qualitative and quantitative insights, and disciplined implementation is essential to our strategy.

4. How does active management help you to identify alpha-generating opportunities?

Our portfolio managers are in constant discussion, actively exploring market dynamics and emerging opportunities. We structure our analysis around three key questions:

• What’s happening?
• What’s priced in?
• What’s our action plan?

These conversations occur in real time on the desk and are complemented by weekly meetings where we review recent performance, assess what strategies succeeded, and look ahead to key catalysts. Proposed trades are then rigorously debated, focusing on opportunity, rationale, entry and exit points, and carry profile of the trade. Only the most promising trades are implemented into our portfolios.

5. What are the biggest challenges and opportunities for investors right now?

A major challenge for investors today is identifying the themes driving markets and recognising when they transition from long term narratives to shorter term influences that directly impact pricing. Currently, equity markets are fuelled by the exponential growth of mega tech stocks, echoing previous boom-and-bust cycles seen throughout history. Alongside this, underlying mega trends such as digitisation and demographic shifts are steadily shaping long term investment decisions. These trends, though simmering in the background now, can quickly become the primary focus, reshaping the market narrative and investor priorities.

6. What’s the best piece of investment advice you’ve ever been given?

The best piece of investment advice I have been given is to be comfortable being uncomfortable. Things will not always go your way, but if you have a steadfast process and the discipline to let winners run while cutting losses, success will follow over time.