Credit

Dynamic Global Bond

Dynamic and benchmark unencumbered

A dynamic and benchmark unaware approach, seeking to capitalise on the best opportunities based on prevailing market conditions

Flexible investment approach

Flexibility to invest across global fixed income markets with deep analysis and research to identify high conviction opportunities

Clear investment philosophy

Clear philosophy focused on minimising downside risk and managing liquidity

SFDR Product Information*

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*Sustainable Finance Disclosure Regulation

Philosophy

Our investment philosophy is built on years of extensive in-house research, and is based on fundamental research, capital preservation and a strong respect for liquidity.

When managing global fixed income portfolios, we apply this investment philosophy via a dynamic investment approach, aiming to capitalise on the best opportunities on offer.

Clear philosophy

Focus on managing downside, liquidity and fundamental research. Since fixed income risk is asymmetric, the team focuses on managing downside risk. We have a strong respect for liquidity as our proprietary research has identified liquidity as the biggest risk in managing fixed income portfolios, particularly credit assets. We believe that the risk/return characteristics of our philosophy are far more compelling than chasing yield further up the risk spectrum or in complex securities where probabilities of default could be higher than expected.

Dynamic approach

Capitalise on the best opportunities on offer across global fixed income markets. Our dynamic approach combines top-down strategic positioning in duration and credit, with high conviction bottom-up security selection from a large investment universe. Leveraging our global investment strategy framework and fixed income capabilities we seek to optimise duration and credit in the strategy based on prevailing market conditions. In populating each sector, the investment team focuses on investing in high conviction trades.

Diversification

A bond solution that diversifies equities risk. The Strategy provides investors with exposure to global fixed income with the risk profile of a defensive bond portfolio. The strategy offers diversification to equities risk within a broader balanced portfolio given the typically low or negative correlation of bond prices with other risk assets.

The Macquarie Dynamic Global Bond Strategy uses a global and dynamic approach which combines top-down strategic positioning in duration and credit, with high conviction bottom-up security selection. Our strategic positioning aims to ensure that the levels of duration and credit are optimised to prevailing market conditions and economic cycles. Any tactical tilts to protect the portfolio and/or capitalise on opportunities are set from these strategic levels of duration and credit exposure.

The majority of the portfolio invests in a core holding of government bonds and investment grade credit. From this core holding, we make strategic allocations to high yield and emerging markets, with the decision to do so drawing from our global investment strategy framework and sector rotation processes. In populating each sector our security selection process focuses on investing only in high conviction trades as determined by our team of global fixed income professionals operating from London, New York, Philadelphia and Sydney.

Positions are primarily hedged. The strategy can also add limited active currency positions mainly used as a hedging tool to balance credit exposure. Duration and sector ranges are shown to the right.

Management team

For more information about our Credit capabilities

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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 Strategy 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.

Income securities risk: The Strategy may have exposure to a range of income 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, a change to the reference rate used to set the value of interest payments, market sentiment, or issuer default. These risks may be greater for securities offering higher returns. Income security risk may cause volatility and/or financial loss to a Strategy.

Interest rate risk: The value of the investments that the Strategy has exposure to will generally be sensitive to changes in market interest rates. In addition, changes to reference rates may impact the value of your investment in a Strategy. The Strategy may take active interest rate positions, either through physical security selection or through derivatives. Movements in market interest rates may impact the value of your investment in the Strategy.

For investors in EMEA: Past performance does not predict future returns. Strategy performance is available upon request.

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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)

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