Macquarie Australian Fixed Interest FundSeeking 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

Aims to deliver consistent alpha, using multiple low-risk strategies adaptable across different market conditions

Diversification

Potential for diversification against equity market risk

Fund facts
Investment objective 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
Benchmark Bloomberg AusBond Composite 0+ Yr Index
Portfolio managers David Ashton, Matthew Mulcahy
Inception date 15 May 1995
Fund size $A110.1m (current as at 31 October 2018)
Management fee 0.490%pa of the net asset value of the Fund
Performance fee 0.000%pa
Minimum investment $A20,000
Distribution frequency Generally quarterly
APIR code MAQ0061AU

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

Investment strategy

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.

Performance

Net returns as at 31 October 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Macquarie Australian Fixed Interest Fund** 0.52 0.87 3.12 2.35 3.04 4.42
Benchmark*** 0.48 0.87   3.09 2.36 2.91 4.39

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Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 15 May 1995

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual circumstances, your net returns may differ from the net returns quoted above.

*** The Fund is benchmarked against the Bloomberg AusBond Composite 0+ Yr Index.

Managers

David Ashton
Matthew Mulcahy

Risks

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 this Fund include:

Investment risk: The Fund seeks to generate higher income 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.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Send us the Application Form and any required identification documents

Resources

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