Within the Short Term Portfolio, Australian and Global duration were increased via a reduction in credit.
Realm Short Term Income was reduced and Bentham Global Income was exited, with the proceeds redirected into Western Asset Australian Bond and Janus Henderson Australian Fixed Interest, both increased, and a new allocation introduced to Macquarie Dynamic Global Bond Fund. Once currency hedging is taken into account, global bond yields have become attractive, offering fair compensation for risks such as global inflation volatility and a lack of fiscal discipline. At the same time, an overweight to longer-duration Australian bonds has been added, as this is expected to provide protection for the portfolio if economic growth weakens further, supporting a shift away from shorter-duration, credit-focused strategies and toward higher-quality, longer-duration exposure.
The Macquarie Dynamic Global Bond Fund actively and dynamically invests in a diversified portfolio of global fixed income instruments. The Fund takes a benchmark unaware approach, meaning it is not constrained to replicate the index's composition, and instead has the flexibility to adjust duration, credit exposure and sector allocation as market conditions change. Its exposure spans sovereign bonds, investment grade credit, and other sectors such as high yield and emerging markets debt when these are expected to outperform, with duration actively managed through derivatives such as swaps and futures. The Fund is designed to provide diversification against equity risk, along with capital growth and income, giving investors a defensive fixed income allocation that can adapt to a changing rate and credit cycle rather than passively tracking one.
The Fund is managed by Macquarie Asset Management, part of Macquarie Group, which runs one of Australia's largest active fixed income businesses, with fixed income and credit assets managed from teams based in Australia, the UK and the US. The strategy sits within Macquarie's broader Credit platform, which manages more than 200 billion US dollars globally.