EQT Diversified Fixed Income Fund - Class B
The Fund invests in Australian government bonds, State (semi) government bonds, supranational bonds, investment grade corporate bonds, and other fixed income securities.
The Equity Trustees Fixed Income Fund offers investors exposure to a diversified portfolio of high-quality fixed income securities, primarily Australian government, State (semi) government, supranational, and investment-grade corporate bonds.
The fund aims to outperform its benchmark index over rolling three-year periods by actively managing interest rate risk, yield curve exposure, and sector diversification. Equity Trustees leverages its investment expertise to select securities, time market movements, and manage risk. By investing in this fund, investors gain access to a professionally managed portfolio with the potential for competitive returns while mitigating downside risk.
The Fund invests in Australian government bonds, State (semi) government bonds, supranational bonds, investment grade corporate bonds, and other fixed income securities.
The fixed income portfolio is highly diversified across sectors and maturities. This approach attempts to manage interest rate movements that can have a significant impact on fixed income returns.
The Fund actively manages:
- Changes in the direction of interest rates (duration).
- The distribution of assets across the maturities spectrum (yield curve).
- The sector mix (diversification) across Australian government bonds, State (semi) government bonds, supranational bonds and investment grade corporate bonds.
The Fund is designed for investors seeking a core portfolio invested in high-quality fixed income securities.
Features and benefits of investing in the fund
- Access to a professionally managed portfolio of primarily Australian fixed income securities;
- Access to Equity Trustee’s investment management expertise and experience.
The Fund aims to outperform the benchmark over rolling three-year periods, after taking into account fees and expenses.
In pursuing the Fund investment objective, Equity Trustees takes into account the views of the Asset Allocation Committee, together with favoured leading economic indicators and Central Bank determinations affecting interest rates. Further analysis including relative return analysis, technical analysis and our own market modelling, assists us in determining value and security selection.
We focus on investing in higher quality fixed income assets, avoiding lesser quality corporate securities and overly complex, non-transparent structured securities.
We add value by actively managing changes in the direction of interest rates (duration), managing the distribution of assets across the maturities spectrum (yield curve) and managing the sector mix (diversification) across Australian government bonds, State (semi) government bonds, supranational bonds and investment grade corporate bonds.
In managing the Fund, Equity Trustees applies the following guidelines:
- Duration – The average duration of fixed income securities in the Fund will vary based on Equity Trustees forecast for interest rates and under normal conditions will remain plus or minus 1.5 years from that of the Benchmark.
- Credit quality – The Fund will invest predominately in investment grade securities using the higher of S&P or Moody’s ratings but may invest in unrated securities where determined by Equity Trustees to be of comparable quality.
The Fund invests in Australian government bonds, State (semi) government bonds, supranational bonds, investment grade corporate bonds, mortgage backed securities and other fixed income securities.
The Fund may directly use options, futures and other Derivatives (consistent with the Corporations Act restrictions for common funds). Derivatives are not used speculatively and, when used, Equity Trustees ensures the Fund can pay all the obligations which might result from an exposure to Derivative investments.
Equity Trustees has been managing and protecting the assets of Australians for more than 130 years.
We have safeguarded and built their wealth through market cycles including depressions, recessions, crises and pandemics. It comes with the territory for a company that was founded as an independent trustee and executor, which entails a higher duty of care.
Today, we manage more than $4 billion in funds across Australian shares, global shares, credit and fixed income.
Our values of integrity, independence and trust are at the heart of our active management approach. This delivers long-term outperformance while managing risk responsibly.
Allister is responsible for co-managing high-quality Australian fixed income and cash portfolios and is also involved in the ongoing daily management of the Mortgage Income Fund. He has more than 15 years of experience in varied roles across the finance industry, having previously worked for eight years at the Treasury Corporation of Victoria, initially as a treasury dealer and later in an advisory capacity as treasury client relationship manager.
Joined Equity Trustees: September 2019
Qualifications: Graduate Diploma of Applied Finance, Diploma of Financial Markets and Diploma of Financial Advising
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