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