The Fund provides exposure to an actively managed, benchmark unaware and diversified portfolio of fixed income investments such as sovereign bonds and investment grade credit.

The Fund aims to generate attractive returns by dynamically investing in global fixed income instruments. It aims to provide diversification against equity risk as well as capital growth and some income.

Benefits of investing in the Macquarie Dynamic Bond Fund

• Potential for regular income with some capital growth.
• Potential to deliver returns in different market conditions using a defensive yet flexible strategy with a focus on capital preservation.
• Provides potential diversification against equity risk.
• Provides exposure to sectors that are not available through a traditional fixed interest fund.
• Access to the investment management expertise of Macquarie Asset Management Public Investments.

The Fund may be suitable for investors who are looking for an investment with the objective of the Fund listed above and are prepared to accept the risks of the Fund.

About the Fund

The Fund provides exposure to an actively managed, benchmark unaware and diversified portfolio of fixed income investments such as sovereign bonds and investment grade credit. The Fund may also provide exposure to other fixed income sectors such as high yield and emerging markets debt when these are expected to outperform.

Significant features

• Provides exposure to a diversified portfolio of fixed interest and credit-based investments.
• Actively identifies outperforming fixed interest and credit sectors.
• Minimises currency volatility through hedging.

How we invest your money

Generally, exposure will be to fixed rate notes. The duration profile of the Fund is actively managed 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.

The Fund gains exposure to securities either directly or through funds managed by a member of the Macquarie Group. The Fund may be exposed to derivatives to implement its investment strategy. For example, protection may be purchased on issuers that are believed to be over-valued or at risk of downgrade. These positions increase in value when the underlying instrument falls in value and decrease in value when the underlying instrument rises in value. The portfolio is generally hedged to Australian dollars. Small active currency positions may be taken when the Investment Manager believes that there are opportunities to add value.

Asset allocation

• Sovereign bonds*: 0%-100%

• Investment-grade credit**: 0%-70%

• High yield: 0%-20%

• Emerging markets debt: 0%-20%

*Includes Australian government, Australian semi government, supranational, global sovereign and cash.

**Includes Australian and global investment grade credit.