Macquarie embraces multi-manager approach
Macquarie is the latest to move to a multi-manager style for international fixed interest with the launch of its diversified fixed interest trust.
Thursday, July 29th 2004, 6:45AM
Macquarie New Zealand’s Financial Services Group boss John Rowley, says the trust is for people who “already have investments in New Zealand fixed interest assets and wish to diversify, in the same way as they would with equities.”
The trust invests in a variety of sectors including high yield debt, mortgage-backed securities and emerging markets debt that are either illiquid, undiversified or do not exist at all in New Zealand.
“The trust offers New Zealanders access to investments which would be extremely difficult for them to manage on their own, from both an access and an administration perspective,” Rowley says.
Rowley says the fund follows an investment process known as active sector rotation, which means that it moves out of Australian fixed interest investments and into the global sectors when these offer good relative value. Conversely, exposure to these global sectors is reduced by investing into the Australian fixed interest market when they do not offer good relative value.
The trust is expected to pay individual investors quarterly distributions, net of resident witholding tax.
It is invested around the following strategic benchmarks:
- Australian fixed interest 40%
- Global government bonds 20%
- Global investment grade corporate bonds 20%
- Global high yield corporate bonds 10%
- Emerging market debt 10%
- Mortgage-backed and asset-backed securities 0%
The Bank of New Zealand was the first to move to a multi-manager style for international fixed interest.
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