Strategy
Investment Approach
- Seeking to maximize total return and provide income through investment in a global bond multi-sector portfolio.
- A strong focus is devoted to risk management and in particular seeking to mitigate downside risk at all times.
- The strategy performance is measured against a cash benchmark.
- Expected average volatility: volatility is expected to remain between 2% and 4% annualized over a market cycle and should not exceed 5% per annum. (Actual results may vary, and the information should not be considered or relied upon as a projection of future performance.)
- The strategy is subject to interest rate and credit risk, as well as risks unique to international investing, such as change in currency values.
Portfolio Construction
- Duration range: Typically between 0 and 6 years
- Currency limit: limited to 20% net exposure to non-AUD currencies, as a percentage of the portfolio’s market value
- Maximum 50% in cash and cash equivalent securities
- Domestic sovereign bonds: up to 75% in Australian government bonds
- Credit exposure: up to 50% in investment grade corporate credit
- Rating exposure: up to 20% in securities rated below investment grade
Past performance does not predict future returns.