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Seeking to deliver consistent excess returns in Australian fixed income

 

What the Macquarie Australian Fixed Interest Fund aims to offer

Clear philosophy

Avoid negative surprises, and ensure risk is rewarded

Consistent alpha

Multiple low-risk strategies adaptable across different market conditions

Diversification

Potential for diversification against equity market risk

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in the fund include:

  • Investment risk: The Fund seeks to generate higher returns than traditional cash investments. The risk of an investment in the Fund is higher than an investment in a typical bank account or term deposit. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request being made and the time the redemption unit price is calculated.
  • Income securities risk: The Fund may have exposure to a range of income securities, including government and corporate bonds, floating rate notes, hybrids, and structured securities. The value of these securities may fall, for example due to market volatility, interest rate movements, perceptions of credit quality, supply and demand pressures, market sentiment, or issuer default. These risks may be greater for securities offering higher returns. Income security risk may cause unit price volatility and/or financial loss to the Fund.
  • Credit risk: The value of the Fund’s investments may be sensitive to changes in market perceptions of credit quality, both of individual issuers and of the credit markets in general. The Fund has exposure to credit related securities and takes credit risk in order to achieve its investment objectives. However, the value of such securities, and therefore the Fund’s unit price, may be impacted by changes in the market’s perception of credit quality.

For a full description of the risks of investing in the fund, you should read the Product Disclosure Statement before deciding to invest.

Detailed fund information

Macquarie Investment Management has been managing cash and fixed income portfolios since 1970. Over 100 investment professionals manage $172 billion1 in fixed income and currency assets globally.

The Fund aims to outperform the Bloomberg AusBond Composite 0+ Yr Index over the medium term (before fees) by using an active investment strategy. It aims to provide regular income and a moderate level of growth.

The Fund provides exposure to a diversified portfolio of predominantly Australian fixed interest securities issued by government or corporate entities and asset-backed securities.

The Investment Manager aims to deliver consistent alpha by actively managing the Fund and focusing on multiple and adaptable low risk strategies. Backed by in-house research and a disciplined and thorough investment process, the Fund aims to identify and capitalise on the full range of opportunities available in Australian fixed income markets, while providing potential diversification against equity market risk.

The Fund gains exposure to securities either directly or through funds managed by a member of the Macquarie Group.

While the Fund is hedged to Australian dollars, the Investment Manager may take limited active currency positions when it is believed that there are opportunities to add value using a disciplined active currency investment process.

The Fund may be exposed to derivatives, including derivatives that increase in value when the underlying instrument falls in value, and decrease in value when the underlying instrument rises in value. Derivatives may be used for hedging and active investment purposes.

Management fee: Management fee – 0.490% pa of the net asset value of the Fund.

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Generally quarterly

  • Lonsec — 'Recommended'2
  • Zenith — 'Recommended'3
  • Morningstar4 — four star Morningstar RatingTM (quantitative rating).

These reports are only available to licensed financial advisers on request. Please contact your local Business Development Manager.

Available on:

  • AMP Flexible Lifetime
  • Asgard
  • Ausmaq
  • BT Panorama
  • BT Wrap
  • GrowWrap
  • PortfolioCare
  • iAccess
  • IOOF Pursuit
  • Macquarie Accumulator
  • Macquarie Wrap
  • MLC Wrap
  • Netwealth
  • North
  • Oasis
  • PowerWrap
  • SmartWrap
  • Summit
  • uXchange

Find out how we can help


If you'd like to speak to a Macquarie Business Development Manager about how we can help, get in touch.