To provide potentially higher levels of returns compared to cash and cash-like securities with low to moderate volatility in the unit price.

Significant features and benefits

• Capital stability: Conservatively managed, the Fund is well suited to investors looking for potentially higher levels of returns compared to cash with low to moderate volatility.
• Income stream: Investing predominantly in high quality bonds provides the potential for a stable quarterly income stream.
• Diversification: A flexible, unconstrained approach results in a diversified portfolio that can be complementary to other asset classes.
• Flexibility: The Underlying Fund is able to meaningfully shift exposure to different geographies, sectors and fixed

To provide potentially higher levels of returns compared to cash and cash-like securities with low to moderate volatility in the unit price.

The Fund invests into the Underlying Fund, which is an actively managed portfolio of Government and non-Government bonds, notes, corporate securities, mortgage-backed and asset-backed securities, emerging market debt, convertible securities, derivatives, including swaps, futures, foreign exchange contracts and options, cash and enhanced cash instruments, from both the Australian and global markets. 

The Manager applies an innovative, flexible, and risk aware approach to fixed income portfolio management. The Fund targets an absolute return over time, by investing in a global, diversified portfolio of predominantly investment grade fixed income securities, according to the Manager's global macroeconomic and market views.

Investment approach:

The Manager draws on information from many sources such as economic round tables, investment banks, brokers, rating agencies and central banks. The Manager employs a rigorous evaluation process for individual trades, first confirming that a prospective security meets their global macroeconomic view, then incorporating various decision variables such as duration, yield curve, country, sector and volatility which is supported by the investment team’s research and analysis.

Investment universe and portfolio construction:

The investment universe may include, but is not limited to, Government and non-Government bonds, notes, corporate securities, mortgage-backed and asset-backed securities, emerging market debt, convertible securities, derivatives, including repurchase agreements, swaps, futures, foreign exchange contracts and options, cash and enhanced cash instruments. The Manager will explore opportunities in both Australian and global markets, potentially investing in securities across the range of global markets and, to a limited extent, emerging market countries. Derivatives may be used to increase (or decrease) the duration of the Underlying Fund by gaining economic exposure to bonds. The Manager does not intend to gear the Underlying Fund through the use of derivatives, short selling or borrowing.

Currency strategy:

The Manager actively manages the currency exposure of the Underlying Fund’s investments. The Manager may hold non-Australian dollar denominated securities which may be fully, partially or not hedged back to the Australian dollar. The Manager may also invest directly into currencies. The Manager may hold up to a maximum of 15% of the Underlying Fund’s portfolio in non-Australian dollar currency positions which is comprised of direct investments into currencies and the portion of non-Australian
dollar denominated securities which are not hedged back to the Australian dollar.

The asset allocation of the Underlying Fund is:

Global fixed income securities (including derivatives) 0% – 100%
Cash 0% – 100%