Macquarie Asset Management Client experience
Client experience At Macquarie Asset Management, we focus on generating positive outcomes and seek to deliver superior results over the long term for our clients, portfolio companies, and communities.

Delivering efficiency through innovation

Systematic investments

Overview

Systematically uncovering opportunities

Leveraging cutting-edge research and extensive data to form multidimensional views of companies

Focus on risk

Aiming to reduce negative surprises

Seeking consistency of active returns

Aiming to achieve consistency through market cycles

Philosophy

The investment philosophy of Macquarie Systematic Investments’ active equity strategies is based on the existence of human behavioural biases and their impact on investor decision-making. These biases create investment opportunities when investors exhibit behaviour that is contrary to that suggested by long-term statistical probabilities.

Our role as investment manager is threefold:

  1. Identify the bias: Investors are irrational and exhibit behavioural biases, such as narrative fallacy, recency bias, herding, and overreaction.
  2. Quantify the bias: Factors, or signals, are used to capture and capitalise on such biases to create alpha opportunities. For example, quantifiable characteristics of stocks that have proved to influence future stock returns.
  3. Implement a portfolio: A diverse set of factors is combined in a portfolio framework to seek to deliver specific investment outcomes.

 

Process

Our investment approach is premised on using factors, or signals, to capture and capitalise on investor biases. Our investment process is therefore centred around how we develop and calibrate such factors and how they are pulled together in a robust portfolio framework.

Signals can be considered from either an alpha perspective (What are the attractive investment characteristics of stocks?) or a risk perspective (What are the challenges to this investment opportunity?).

Alpha signals distinguish between future outperformers versus underperformers, while risk signals are used to control uncertainty that can lead to both outperformance and underperformance.

At a very high level, our alpha signals reflect time-tested investment approaches, such as, but not limited to:

  • Quality: Measuring the strength of a company’s business model and its sustainability of earnings.
  • Sentiment: Seeking to capture positive trending behaviour that is likely to continue. Examples include strong share price momentum or strong business operating momentum.
  • Value: Seeking to identify the relative valuation of a company given its characteristics, history, and peers.

Risk signals aim to capture and limit potential challenges to participating in investment opportunities. Examples of such factors include market liquidity and environmental, social, and governance (ESG).

Our investment approach takes advantage of a broad range of investment themes to drive performance while aiming to minimise any unwanted risks and seeking to produce a robust and well-diversified portfolio.

 

What we offer

Australian Equities

  • Australian Emerging Companies
  • Australian Enhanced Property Securities

Global Equities

  • Enhanced Emerging Markets
  • Enhanced Global Infrastructure
  • Enhanced Global Property

       

      Management team


      For more information on our equity capabilities

      Learn more

       

      Risks

      All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and portfolio value variability over the short term).  Some of the significant risks of the systematic strategies are included below. 

      Investment risk: The Strategy seeks to generate higher returns than traditional cash investments. The risk of an investment in the Strategy may be higher than an investment in a typical bank account or term deposit. Distributions may fluctuate, as may the Strategy’s value. The value may vary by material amounts, even over short periods of time.

      Market risk: The investments that the Strategy has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Strategy. 

      Security specific risk: Securities and the companies that issue them are exposed to a range of factors that affect their individual performance. These factors may cause an investment’s return to differ from that of the broader market. The Fund may therefore underperform the market and/or its peers due to its security specific exposures. 

      International and emerging market risk (for international and emerging market strategies only): The Strategy has exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the investments that the Strategy has exposure to. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Emerging markets may experience lower liquidity (including as a result of securities or bond markets being closed for extended periods), potential for political unrest leading to recession or war, greater potential for sanctions to be imposed on the country or its citizens, companies or institutions, increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk.

      Overview

      Differentiated approach to indexing

      Provides exact pre-tax index returns with no management fee

      Flexible strategy

      Offers flexibility to invest across a range of asset classes and geographies

      Robust risk management

      Applies a multi-layered approach to risk management

       

      Process

      True Index achieves exact pre-tax index returns for no management fee by:

      • Gaining securities exposure: by investing in an underlying portfolio of assets closely resembling the exposure of the relevant index.
      • Entering into a swap agreement with a Macquarie entity (Macquarie Financial Limited):
        • If the underlying portfolio underperforms the index, Macquarie compensates the strategy to the extent of the underperformance.
        • If the underlying portfolio outperforms the index, the outperformance is paid to the Macquarie swap counterparty.

      * The composition of the return (that is, the split between income and capital returns) may be different from that of the relevant Index. This may be due to the buying and selling of underlying investments or because of the Swap payments (income or expense) used to deliver Index returns.

       

      What we offer

      • True Index Emerging Markets
      • True Index Emerging Markets Value Weighted
      • True Index Global Infrastructure Securities
      • True Index Global Real Estate Securities
      • True Index International Equities

           

          Management team


          For more information on our equity capabilities

          Learn more

          Risks

          All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and portfolio value variability over the short term).  Some of the significant risks of the systematic strategies are included below. 

          Investment risk: The Strategy seeks to generate higher returns than traditional cash investments. The risk of an investment in the Strategy may be higher than an investment in a typical bank account or term deposit. Distributions may fluctuate, as may the Strategy’s value. The value may vary by material amounts, even over short periods of time.

          Market risk: The investments that the Strategy has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Strategy. 

          Security specific risk: Securities and the companies that issue them are exposed to a range of factors that affect their individual performance. These factors may cause an investment’s return to differ from that of the broader market. The Fund may therefore underperform the market and/or its peers due to its security specific exposures. 

          International and emerging market risk (for international and emerging market strategies only): The Strategy has exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the investments that the Strategy has exposure to. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Emerging markets may experience lower liquidity (including as a result of securities or bond markets being closed for extended periods), potential for political unrest leading to recession or war, greater potential for sanctions to be imposed on the country or its citizens, companies or institutions, increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk.

          Overview

          Flexible, customised approach

          Seeks to enable clients to leverage multiple sources of equity returns to build customised exposures

          Retain control

          Investment decisions are at the discretion of the client, with Macquarie support at every step

          Effective and cost efficient

          Combining a variety of investment exposures into one vehicle creates operational and cost efficiency

          Process

          Multi-Factor enables clients to consolidate many pieces of their investment ‘puzzle’ into a single vehicle:

          • Combine individual countries or regions to create unique global equity exposures
          • Create a specific factor exposure to complement existing equity managers 
          • Adopt an alternative construction methodology
          • Apply desired socially responsible investment (SRI) screens or environmental, social, and governance (ESG) investment approaches

           

          What we offer

          • Macquarie Multi-Factor Solutions

                 

                Management team


                For more information on our equity capabilities

                Learn more

                 

                Risks

                All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and portfolio value variability over the short term).  Some of the significant risks of the systematic strategies are included below. 

                Investment risk: The Strategy seeks to generate higher returns than traditional cash investments. The risk of an investment in the Strategy may be higher than an investment in a typical bank account or term deposit. Distributions may fluctuate, as may the Strategy’s value. The value may vary by material amounts, even over short periods of time.

                Market risk: The investments that the Strategy has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Strategy. 

                Security specific risk: Securities and the companies that issue them are exposed to a range of factors that affect their individual performance. These factors may cause an investment’s return to differ from that of the broader market. The Fund may therefore underperform the market and/or its peers due to its security specific exposures. 

                International and emerging market risk (for international and emerging market strategies only): The Strategy has exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the investments that the Strategy has exposure to. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Emerging markets may experience lower liquidity (including as a result of securities or bond markets being closed for extended periods), potential for political unrest leading to recession or war, greater potential for sanctions to be imposed on the country or its citizens, companies or institutions, increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk.

                Recent Insights

                [4268707 ]

                Macquarie Asset Management is a leading global asset manager offering a diverse range of investment solutions, including real assets, real estate, and credit.

                 

                This information is a general description of Macquarie Asset Management only. The views expressed in this website represent those of the relevant investment team and are subject to change. No information set out above constitutes advice, an advertisement, an invitation, a confirmation, an offer or a solicitation, to buy or sell any security or other financial product or to engage in any investment activity, or an offer of any banking or financial service. Some products and/or services mentioned on this website may not be suitable for you and may not be available in all jurisdictions.

                 

                Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.

                 

                Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.

                 

                Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this website is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia).  The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank.  Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities.  In addition, if this website relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

                 

                Additional important information (including regional disclosures)

                 

                [3246420]