Macquarie Unveils New Funds With Eye On Rising Rates

Editorial Staff

15 December 2017

As a sign of how prospects of how investment firms are facing up to the prospect of rising interest rates, Australia’s Macquarie Investment Management has brought has brought out three new funds including one that offers increased diversification, the firm has announced.

The organisation said it has launched the Macquarie Absolute Return Mortgage-Backed Securities Fund - a sub-fund of a Luxembourg SICAV - which enables certain global investors access to Macquarie’s existing Absolute Return Mortgage-Backed Securities strategy. Macquarie also introduced two other funds: Macquarie Global Multi Asset Income Fund, which seeks to provide investors with current income and an investment that has the potential for long-term capital appreciation, and Macquarie US Smaller Companies Fund, which aims to generate long-term capital appreciation by investing in US small- to mid-cap companies.

“With interest rates rising slowly, global investors continue to seek ways to diversify, manage duration risk, and increase yield in their fixed income portfolios,” Brian McDonnell, portfolio manager of the new Macquarie Absolute Return Mortgage-Backed Securities Fund, said. “We have managed the strategy for a decade and are pleased to offer our ARMBS capabilities to a wider group of investors who are seeking liquidity with a higher potential risk-adjusted return,” McDonnell added.

All three funds are domiciled in Luxembourg as UCITS-compliant SICAV investment vehicles.

Macquarie Investment Management is a global asset manager with offices in the US, Europe, Asia, and Australia. As at the end of September this year, it oversaw $246 billion of assets.