Macquarie Income Opportunities FundAn income solution with a focus on preserving capital

What the Macquarie Income Opportunities Fund aims to offer

Clear philosophy

Focus on preserving capital and managing liquidity

Flexible strategy

Potential for attractive returns across different market conditions

Income

Monthly distributions, potential to outperform cash

Fund facts
Investment objective The Macquarie Income Opportunities Fund aims to outperform the Bloomberg AusBond Bank Bill Index# (Benchmark) over the medium term (before fees). It also aims to provide higher income returns than traditional cash investments regardless of interest rates or economic cycles
Benchmark Bloomberg AusBond Bank Bill Index
Portfolio managers Brett Lewthwaite, David Hanna, Andrew Vonthethoff
Inception date 19 September 2003
Fund size $A3,318.5m (current as at 30 November 2018)
Management fee 0.492% pa of the net asset value of the Fund 
Performance fee 0.00% pa
Minimum investment $A20,000
Distribution frequency Generally monthly
APIR code MAQ0277AU

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

How to invest

Now available via the mFund Settlement Service

We’re pleased to advise that you can now invest in the Macquarie Income Opportunities Fund via mFund.

mFund allows you to buy, hold and sell units in unlisted managed funds through a process similar to buying and selling shares.

Visit the mFund website to learn more

mFund
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Investment strategy

The Fund provides exposure to a wide range of investment grade credit-based securities (predominantly floating and fixed rate corporate bonds, and asset-backed securities) and cash. It may also have exposure to global high yield credit securities, emerging market debt, hybrid securities and a range of credit opportunities when they are expected to outperform and reduce exposure to these sectors when they are expected to underperform.

Generally, exposure will be to floating rate notes. The Fund may also have exposure to fixed rate notes with the interest rate risk hedged out through the use of derivatives such as swaps and futures.

The investment process aims to reduce the risk of the Fund being adversely affected by unexpected events or downgrades in the credit rating of the Fund’s investments. A disciplined framework is used to analyse each sector and proposed investment to assess its risk.

Investors will also be able to access the management expertise of Macquarie and other leading fixed interest managers around the world.

Performance

Net returns as at 30 November 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Macquarie Income Opportunities Fund** -0.19 -0.16   0.92 2.82 3.04 2.96 4.93
Benchmark*** 0.16 0.48 1.91 1.83 1.93 2.17 4.17

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Past performance is not a reliable indicator of future performance.

* Inception date is 19 September 2003.

** Total net returns are quoted after the deduction of all fees and expenses. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions. Due to individual investor circumstances, your net returns may differ.

*** The Benchmark is the Bloomberg AusBond Bank Bill Index.

Managers

Brett Lewthwaite
Brett Lewthwaite
David Hanna
David Hanna
Andrew Vonthethoff
Andrew Vonthethoff

Meet the Manager

Hear from Portfolio Manager, Brett Lewthwaite, as he offers insight into how the Fund was deliberately designed as an alternative fixed income solution for the defensive part of Australian investors’ portfolios, and how its flexible, global approach aims to deliver attractive outcomes and returns to investors through various parts of the cycle.

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 or application for units being made and the time the redemption unit price or application unit price is calculated.

Manager risk: There is no guarantee that the Fund will achieve its performance objectives, produce returns that are positive, or compare favourably against its peers. The Investment Manager may change its investment strategies and internal trading guidelines over time, and there is no guarantee that such changes would produce favourable outcomes.

Income securities risk: The fund may have exposure to a range of income securities, including high yield, emerging markets 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, for example high yield or emerging market securities. Income security risk may cause unit price volatility and/or financial loss to the fund.

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

Insights

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