Flexible investment approach
A global high-quality investment grade credit portfolio with flexible allocation to interest rate duration to manage risk exposure as well as the ability to invest in higher yielding credit sectors when value is on offer
Clear investment philosophy
Focusing on fundamental research, capital preservation, and a strong respect for liquidity as credit risk is asymmetric and liquidity risk is often overlooked in income investing.
Large, experienced, and stable team
We have a deep and experienced global fixed income team with more than 130 investment professionals located in Australia, New Zealand, the US, and Europe.
Our investment philosophy is based on fundamental research, capital preservation, and a strong respect for liquidity. It is backed by years of in-house research showing that credit risk is asymmetric and liquidity risk is the biggest risk in managing credit. As such, liquidity is paramount, and our priority is to avoid the negatives and limit drawdowns rather than chase yield.
Flexible, absolute return approach
- A flexible and opportunistic investment approach combining the benefits of a focus on capital preservation with the ability to participate in the upside approach. The strategy covers a wide range of global fixed income universes, seeking to invest only when value is present.
Clear investment philosophy
- Our underlying philosophy focuses on avoiding the downside with a strong respect for liquidity.
Proven performance
- The strategy track record spans more than 10 years of providing strong performance, particularly during periods of market stress.1
Access to investment expertise
- The strategy is managed by an experienced and stable fixed income team with the support of our global fixed income resources, including dedicated sector specialists in high yield and emerging markets debt (EMD).
The Macquarie Global Income Opportunities strategy is a flexible, absolute return, multi-sector investment solution designed to capture a wide spectrum of opportunities throughout the market cycle. Consistent with our focus on capital preservation and a strong respect for liquidity, the core of the portfolio is invested predominantly in investment grade credit with the ability to actively manage interest rate duration to manage risk exposures. This is supplemented with tactical and opportunistic allocations to other credit sectors (such as high yield and emerging markets) and limited currency exposure depending on market conditions.
These exposures are tactically managed by the team using our proven global sector rotation process across fixed income markets and in-depth, bottom-up fundamental credit analysis.
Top-down sector rotation and duration
Strategic level of credit exposure and duration is determined through our global investment framework based on where we are in the investment cycle. The strategy looks to allocate to sectors that present attractive value and moves out of sectors when the risks appear to outweigh the potential rewards.
Bottom-up security selection
Security selection combines deep fundamental credit analysis at the issuer level followed by relative value analysis. Our team of global credit analysts provide insights into each and every issuer we hold in our portfolios, ensuring any downside risks are identified. An evaluation of environmental, social, and governance (ESG) factors is integrated into our credit analysis process.
For more information about our Credit capabilities
Risks
All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and portfolio value variability over the short term). Some of the significant risks of the Strategy are included below.
Investment risk: The Strategy seeks to generate higher returns than traditional cash investments. The risk of an investment in the Strategy may be higher than an investment in a typical bank account or term deposit. Distributions may fluctuate, as may the Strategy’s value. The value may vary by material amounts, even over short periods of time.
Income securities risk: The Strategy may have exposure to a range of income securities. The value of these securities may fall, for example due to market volatility, interest rate movements, perceptions of credit quality, supply and demand pressures, a change to the reference rate used to set the value of interest payments, market sentiment, or issuer default. These risks may be greater for securities offering higher returns. Income security risk may cause volatility and/or financial loss to a Strategy.
Interest rate risk: The value of the investments that the Strategy has exposure to will generally be sensitive to changes in market interest rates. In addition, changes to reference rates may impact the value of your investment in a Strategy. The Strategy may take active interest rate positions, either through physical security selection or through derivatives. Movements in market interest rates may impact the value of your investment in the Strategy.
1For investors in EMEA: Past performance does not predict future returns. Strategy performance is available upon request.
1For investors in Asia-Pacific: Past performance is not a reliable indicator of future performance. Strategy performance is available upon request.
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