September, 2023
The Perpetual Dynamic Fixed Income Fund in the month of September delivered a return of -0.2%
The Fund's robust running income was the key positive contributor to return over the month, partially offsetting the impact of rising bond yields. The running yield has improved substantially over the past 12 months, driven by the Fund's floating rate exposures which benefitted from 400bps of rate rises since May 2022. The portfolio running yield at month end was 4.6%.
Rising bond yields were the key factor impacting return during the month. Bond yields sold off throughout the month as markets priced an extended period of restrictive rates, in line with hawkish central bank rhetoric. The Fund's reasonably low sensitivity to bond yields- as a result of its relatively short 2-year strategic target duration - mitigated the impact of the selloff in bonds. While markets have priced in the peak of the tightening cycle, the Manager is cognisant of ongoing risks to bond yields. This is supported by the signal from Perpetual's proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators and while cycle indicators improved marginally, the combined signal remained negative throughout September
Credit spread dynamics were mixed for performance. Spreads consolidated through September before wideningp towards the end of the month. Issuers in the energy and rail sectors performed well, alongside select Euro denominated financial exposures. Elsewhere, the Fund benefitted from tightening semi government spreads and the Portfolio's small allocation to state government bonds was the key contributor to credit spread return during the month.
The outlook for credit is negative and the Manager remains cognisant of the challenging macro environment and the risks associated with tighter lending conditions. The Fund is defensively positioned and the manager remains focused on identifying relative value opportunities presented as the outlook improves.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-2-1.pdfAugust, 2023
The Fund's running income was the most substantial contributor to relative return over the month. The income generated by the Fund's exposure to floating rate notes and allocation to cash have benefitted from the aggressive increase in base rates over the past 16 months. The portfolio running yield at month end was 4.7%.
Interest rate dynamics were positive for absolute during a month of elevate volatility for bond yields. Long term yields sold off over the first half of August before recovering while the short end rallied throughout the month. The Fund's duration remains close to the strategic target level of 2-years. While markets have priced in the peak of the tightening cycle, the Manager is cognisant of ongoing risks to bond yields. This is supported by the signal from Perpetual's proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical Indicators and remained negative throughout August, predicated on negative readings from the cycle indicator.
Credit spread contraction was a significant contributing factor to performance during the month. Spreads continued to grind tightener, supported by better-than-expected corporate earnings and the slowed pace of monetary policy tightening. The Fund's allocation to RMBS and domestic banks were the key contributors to credit spread return. This positive contribution was partially offset by widening spreads among a number of Euro denominated bonds across diversified financials, real estate and non financial corporate sectors.
The outlook for credit is balanced, the Manager remains cognisant of the challenging macro environment and the risks associated with tighter lending conditions The Fund is defensively positioned and the manager remains focused on identifying relative value opportunities presented as the outlook improves.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-1-1.pdfJuly, 2023
The Fund’s running income was the most substantial contributor to relative return over the month. The Fund’s floating rate exposures have benefitted from rising base rates over recent periods, contributing to the improved running yield. The portfolio running yield at month end was 4.6%.
Interest rate dynamics were positive for performance during the month. Short term yields rallied following the RBA’s decision to keep rates on hold while long term yields sold off marginally. The Fund’s exposure to the very short end was rewarded while longer dated fixed rates exposures detracted slightly as the yield curve steepened. The Fund’s exposure to the short The Fund’s duration remains in line with the strategic target duration of 2-2.5 years.
Credit spread tightening contributed to return during July. Domestic spreads narrowed over the month on supportive supply dynamics and increasing investor risk appetites. The Fund’s domestic bank exposures were the most substantial contributor to credit spread return during the month Subordinated bank exposures performed well as tier 2 and hybrid paper tightened reflecting elevated secondary market demand and a paucity of new issues. Elsewhere, non-financial corporates and utilities were constructive.
While the outlook for credit has improved, the Manager remains conscious of the challenging macro environment and the risks associated with tightening financial conditions. The Fund will continue to actively manage duration and credit exposures to mitigate risks while taking advantage of relative value opportunities presented as the outlook improves.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-9.pdfJune, 2023
The Fund’s positive net return was notable in a month where domestic yields rose sharply along the curve. The Fund’s active duration management and relatively short strategic target duration, diversified exposure to floating rate credit and robust running yield combined to mitigate the impact of yield volatility.
The Fund’s running income was the most substantial contributor to relative return, offsetting the impact of rising bond yields. The running yield has improved substantially over the past 12 months, driven by the Fund’s floating rate exposures which benefitted from 400bps of rate rises since May 2022. The portfolio running yield at month end was 4.7%.
Rising bond yields detracted from return during the month. Domestic yield rose sharply as investors priced in further RBA rate increases, while the curve flattened further, inverting at the 3 and 10-year tenors for the first time since the GFC. The Fund began the month with just 0.6 years of duration, short of the strategic target range of 2-2.5 years. This positioning mitigated the impact of rising bond yields following the RBA’s decision to increase the target cash rate at their June meeting, a decision that defied consensus expectations. As bond yields sold off, the Manager elected to lengthen the Fund’s duration, adding back 1.7 years to be in line with the strategic target range by month end.
Credit spread dynamics were constructive during June as domestic credit spreads narrowed on aggregate while remaining in range of recent levels. The Fund benefitted from exposure to foreign denominated domestic bank hybrids which recovered following the dramatic selloff observed in March. Elsewhere, credit spread performance was broad based with spreads contracting across the portfolio’s exposure to utilities, infrastructure, mining, energy and telecommunications. Narrowing semi-government spreads also contributed substantially.
In line with the challenging outlook for credit, the Manager remains cognisant of risks and the Fund remains defensively positioned. The fund will continue to actively manage duration and credit exposures to mitigate risks while taking advantage of relative value opportunities.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-8.pdfMay, 2023
The Fund’s running income was a substantial positive contributor to relative return, partially offsetting the impact of rising bond yields. Domestic and offshore banks alongside RMBS were the key drivers of income return with non-financial corporate exposures also contributing. The income generated by the Fund’s floating rate credit exposures continues to benefit from rising interest rates. The portfolio running yield at month end was 4.5%.
Rising bond yields were the most significant determinant of return during the month. Domestic yield moved higher over the month following the RBA’s decision to increase rates at their May meeting in anticipation of further tightening. Facing persistently elevated core inflation and a backdrop of slowing global growth, the path of monetary policy tightening is uncertain, and risk of policy errors remains elevated. In such conditions, the Fund’s relatively short target duration continues to limit downside risks and mitigate the impact of month-to-month yield volatility. During the month, the manager elected to reduce the Fund’s duration in line with the worsening Tactical Asset Allocation Bond Score. At month end, the Fund’s modified duration was 0.6 years.
Credit spread dynamics were marginally negative for performance during May as spreads traded in range of recent levels. The Fund’s semigovernment and securitised exposures contributed to credit spread return while longer dated domestic bank paper and real estate investment trusts detracted slightly. Following a substantial de-risking of the portfolio over recent months credit risk was marginally increased during the month as the outlook improved.
In line with the challenging outlook for credit, the Manager remains cognisant of risks and selective in purchases made. Fund remains defensively positioned while retaining the capacity to take advantage of relative value opportunities presented by recent volatility.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-7.pdfFebruary, 2023
During a month where fixed rate bonds sold off, the combination of the Fund’s robust running income and the contribution of credit and swap spread tightening fully offset the impact of rising bond yields. Income return was the most significant contributing factor to performance with the Portfolio collecting robust running income across all sectors. Allocations to non-financial corporates, domestic banks and RMBS were the most substantial contributors to income return. The portfolio running yield at month end was 3.9%.
Credit spread dynamics were constructive for performance during the month as spreads tightened on aggregate. The Fund’s allocation to financials – most notably domestic and offshore banks – were the key contributors to spread return during February. Over the month, the Fund’s credit risk was actively managed with A and BBB rated exposures being reduced while allocation to AAA rated credit was increased.
Interest rate dynamics detracted from returns over the month as bond yields rose on anticipation of an extended monetary policy tightening cycle and rising terminal rate expectations. The Fund’s relatively short strategic target duration of 2-years continues to minimise the impact of yield curve volatility. Throughout the last 12 months of rising interest rates, the Fund’s relatively short strategic duration has been effective in limiting the impact of the dramatic rise in bond yields, contributing to the limited drawdown and short expected time to recover. Curve positioning was also constructive during February as the Fund’s limited exposure to very short end yields mitigated the impact of curve flattening as the short end sold off sharply.
Alongside the strategic target duration, portfolio duration is managed in line with signalling from Perpetual’s proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators. The combined score began the month in positive territory before declining on the back of degrading valuation and technical indicators. At month end, Fund duration was in line with the strategic target of 2- years. The Fund remains defensively positioned while retaining the capacity to add risk should the outlook for credit improve.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-6.pdfJanuary, 2023
Income return remains a significant contributing factor to performance with the Portfolio collecting robust running income across all sectors. Allocations to non-financial corporates, domestic banks and RMBS were the most significant contributors to income return. The portfolio running yield at month end was 3.90%. Credit spread tightening was a substantial contributor to performance over the month. In a strong month for credit, spreads narrowed as the outlook for global growth improved while investors also priced in a slower pace of monetary tightening from central banks.
The key contributing sectors to credit spread outperformance were domestic and offshore banks, non-financial corporates and utilities. The Fund’s exposure to USD and EUR denominated debt performed well across a number of sectors including domestic banks, infrastructure and utilities. While the Fund retains the capability to invest in offshore credit markets, all foreign denominated exposures are hedged back to AUD. As the credit outlook improves, the Manager is comfortable with the current credit exposure of the fund and its capacity to take advantage of upcoming opportunities. Interest rate dynamics were the most significant contributor to absolute return during the month as domestic yields fell sharply on moderating inflation data.
Duration positioning was actively managed throughout the month with the manager electing to shorten duration, selling into strength as yields rallied. At month end, the Fund was in line with the strategic target duration of 2 years. Throughout the last 12 months of rising interest rates, the Fund’s relatively short strategic duration has been effective in limiting the impact of the dramatic rise in bond yields, contributing to the limited drawdown and short expected time to recover. Alongside the strategic target duration, portfolio duration is managed in line with signalling from Perpetual’s proprietary tactical asset allocation model.
The model is used to determine valuation, economic cycle and technical indicators. The combined score improved over the month, reflecting strengthening valuation indicators. The Fund remains defensively positioned while retaining the capacity to add risk as the outlook for credit continues to improve
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-5.pdfDecember, 2022
Income return was a significant contributor factor to performance during the month with the Portfolio collecting robust running income across all sectors. Allocations to non-financial corporates, domestic banks and RMBS were the most significant contributors to income return. Over the past year, rising interest rates and expanding credit premia have contributed to increases in portfolio income. The portfolio running yield at month end was 4.0%. Credit spread dynamics contributed to performance during December. Credit spreads traded in a tight range, narrowing over the course of the month. Credit spread performance was led by domestic and offshore banks with corporates and utilities also contributing.
The Portfolio’s exposure to USD denominated domestic bank debt performed well, led by Macquarie and Westpac USD hybrids. Rising bond yields was the key determinant of the Fund’s negative absolute return during the month. Bond yields rose sharply over the final weeks of the year giving back a substantial portion of their gains since October. The impact of rising long term yields was mitigated by the fund’s relatively short strategic target duration.
Throughout 2022, the Fund’s relatively short strategic duration has been effective in limiting the impact of the dramatic rise in bond yields, contributing to the limited drawdown and short expected time to recover. Portfolio duration is managed in line with signalling from Perpetual’s proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators. The combined score remained in marginally negative territory throughout the month. The Fund’s duration increased slightly over the course of the month ending December marginally above 2 years. Despite recent improvements in the credit outlook the manager remains cognisant of risks and selective in purchases made. The Fund remains defensively positioned while retaining the capacity to add risk as the outlook for credit continues to improve.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-4.pdfNovember, 2022
Financial markets continued their recent rally as investors priced in a slower pace of monetary policy tightening and lower terminal rates. Bond yields broadly moved lower over the month, supported by slowing growth indicators, below expectation CPI results and hawkish commentary from central banks including the Fed. Domestic yields performed well, falling throughout the month following a 25bps rate increase from the RBA which was in line with market expectations. Long term yields outperformed as the curve flattened.
Swap spreads tightened over the month retracing their recent expansion. Domestic credit spreads ended the month in range of recent levels. Spread dynamics were mixed by sector with financial spreads outperformed corporates on aggregate. There was increased volatility among subordinated financials as APRA published guidance on the expectations for callable instruments. The increased scrutiny spooked markets and subordinated bank and insurance paper widened sharply and saw dramatically reduced liquidity.
By month end, subordinated spreads had normalised ending the month lower. Primary market issuance continues to be dominated by the return of Major bank senior issuance. NAB came to market for $4.75B, matching the recently set domestic market record. Elsewhere, ING raised $1.25B via a covered bond issuance. Securitisation deal flow remains robust while non-financial corporate issuance continues to be very light.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-3.pdfOctober, 2022
Income return was the most substantial contributing factor to absolute performance during the month with the Portfolio collecting robust running income across all sectors. Allocations to non-financial corporates, domestic banks and RMBS were the most significant contributors to income return.
The portfolio running yield at month end was 3.60%. Credit spread dynamics were slightly negative for performance during October. Credit spreads were rangebound, ending the month slightly wider on aggregate. Domestic banks and non-financial corporates were the most significant detractors from credit spread return, while RMBS exposures were constructive. A small CDS exposure to Euro denominated corporates performed well as Euro spreads tightened. Notably, swap spreads widened sharply during October, impacting the Fund’s fixed rate credit exposures. The Fund’s allocation to semi-government debt detracted from return as semi spreads moved wider over the month. Interest rate dynamics were constructive for return during the month. Domestic bond yields rallied as the pace of monetary policy tightening slowed. The Fund began October in line with the strategic target duration of 2 years. The relatively short strategic duration has thus far offset the impact of the dramatic rise in bond yields over the year to date, contributing to the limited drawdown and short expected time to recover.
Over the month, the Manager shortened the duration of the portfolio in line with signalling from Perpetual’s proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators. The value indicator worsened during the month, contributing to the negative combined score. With persistent high inflation and the RBA retaining the capacity to surprise markets managing duration risk remains crucial. At month end, the Fund’s duration was marginally above half a year. With a challenging outlook for credit and volatility in rates markets likely to continue, the Portfolio is defensively positioned and retains the capability to add risk at attractive valuations.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-2.pdfAugust, 2022
Income return was the most substantial contributing factor to absolute performance during the month with the Portfolio collecting robust running incomE across all sectors. Allocations to non-financial corporates, domestic banks and RMBS were the most significant contributors to income return. The portfolio running yield at month end was 3.23%.
Interest rate dynamics detracted from absolute return over the month. Yields rose over the month, returning a portion of the gains made since mid-June. The RBA reiterated its dedication to their aggressive tightening cycle, including a 50bps interest rate increase early in August. The impact of rising yields over the month was mitigated by the Fund's relatively short strategic target duration. The short strategic duration has thus far offset the impact of the dramatic rise in bond yields over the year to date, contributing to the limited drawdown and short expected time to recover. August demonstrated the potential for ongoing volatility as the RBA executes on its aggressive monetary tightening and limiting duration risk will remain crucial in the near term.
Credit spread tightening contributed to performance during August. Domestic spreads were rangebound, ending the month marginally tighter on aggregate. Allocation to non-financial corporates, domestic banks and utilities were the key contributors to credit spread return. While AUD spreads were subdued, the Fund benefitted from exposure to a number of EUR denominated positions which continued to recover from their sharp June selloff.
Alongside the strategic target, duration is managed in line with signalling from our proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators. The combined score remained neutral throughout August before a deterioration in technical indicators led to a negative reading towards month end. The Manager elected to lengthen the Fund's tactical duration while remaining close to the two-year strategic target. With a challenging outlook for credit and volatility in rates markets likely to continue, the Portfolio is defensively positioned and retains the capability to add risk at attractive valuations.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp-1.pdfJuly, 2022
Financial markets rebounded during the month with equities and bond yields clawing back a portion of their first half losses. As recession risks continued to rise, markets were buoyed by the softening of monetary policy tightening expectations.
During the month, investors reacted to slowing economic growth by anticipating a deceleration of rate increases from central banks. Two successive quarters of negative GDP growth confirmed a technical recession in the US which saw financial markets rally on expectations the Fed's aggressive tightening cycle would ease. Employment data remains constructive and corporate earnings have proven thus far resilient. Forward looking indicators are less constructive, with profit guidance revised down and Purchasing Manager Indices (PMIs) indicating contraction.
Credit spread dynamics were predominantly benign during July as the expansion of credit spreads observed over recent months slowed. While AUD spreads ended the month slightly wider, USD and especially EUR spreads tightened, the latter recovering a portion of the dramatic selloff observed in June. Primary issuance was orderly during July. NAB issued $1.25B of 10-year non-call 5 tier 2 fixed and floating rate notes. In the corporate space, John Deere Financial priced a 3 year $300M deal. Swap spreads tightened slightly over the month following persistent widening over recent months.
Domestic bond yields ended the month lower after a strong rally in the last week of July. The Australian 10-year is more than loobps down from the June peak. The Reserve Bank of Australia (RBA) has continued its aggressive tightening cycle, having increased the target cash rate by 175bps between the start of May and the 2nd of August. Inflation remains the key concern for the central Bank with trimmed mean inflation - the RBA's preferred measure -rising to 4.9% yoy during the June quarter, remaining well outside of the target range. While surging inflation will provide little comfort to the central bank, the print came in short of estimates and saw monetary tightening expectations ease as a result. At the same time, the labour market remains robust and wage growth is expected to accelerate.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/694_pfp.pdfJuly, 2021
The portfolio continued to collect otrong running income acrooo all sectors. Allocations to non-financial corporateo, domestic banks and RMBS were the moot significant contributors to income return. The running yield at month end was 1.77 .
Interest rate movements were the key contributing factor to performance over the month. Domestic yields rallied through July as the spread of the delta variant and the Greater Sydney lockdown led to a reduction in economic growth and earnings expectations. Investors moved to reduce risk and increase bond exposures while the potential for a delay to monetary tapering also contributed to the rally in yields. The portfolio's exposure to the mid-curve (7-1o yearo) was a significant contributor ao the short end was stable while long term yieldo steepened.
Credit spread dynamics were mixed for pedormance. Domestic spreads were rangebound on aggregate, remaining resilient despite increasing COVID- 9 concerns. The Fund's exposure to Financials and Utilities were positive for credit spread pedormance while allocation to non-financial corporate spreads detracted. While the credit outlook remains positive, valuations are neutral and upside in credit spreads is increasingly limited following the extended rally. Ao such risk management is paramount.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/176001272-1.pdfJune, 2021
The portfolio collected strong running income across all sectors. This contribution to positive carry was primarily associated with allocations to non- financial corporates, domestic banks and RMBS. The running yield at month end was 1.5z%.
Credit spread compression contributed to performance during June. Spreads continued their steady grind tighter over the month. Portfolio allocation to domestic banks, non-financia1 corporates, and offshore banks were the key contributing sectors to performance. Portfolio allocation to the energy sector pedormed particularly well as the oil price continued its extended rally. The portfolio’s exposure to credit markets continues to pedorm well in a low yield environment. Duration positioning contributed to performance in June. Specifically, curve positioning was the key determinant of interest rate performance over the month. The yield curve flattened as inflation concerns eased despite the strong economic outlook. The fund’s exposure to 7 to lo year tenors was the key contributor to interest rate performance. Portfolio duration was maintained throughout June at near z years, in line with the target strategic duration.
The relatively short target strategic duration protects the portfolio from interest rate volatility. Alongside the strategic target, duration is managed in line with signalling from our proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators, and the combined signal was neutral throughout June. In the first week of the month technical indicators improved to raise the bond score out of negative territory for the first time in multiple months. The outlook for credit remains positive and the manager is comfortable with the funds current balance of fixed and floating rate exposures.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/174944366.pdfApril, 2021
The portfolio continued to collect strong running income across all sectors. Thio contribution to positive carry wao primarily associated with allocations to non-financial eorporates, domestic banks and RMBS. The running yield at month end was 1.5%.
Credit spread dynamics contributed to positive performance over the month. Credit spreads tightened on aggregate, reflecting strengthening global growth expectations and robust corporate earnings results. Drivers of credit spread return were broad based, led by non-financial corporates and offshore banks. Portfolio exposure to semi government spreads also contributed to performance. In spite of elevated issuance, semi-government securities have performed well recently on the back of improvements to interstate mobility and the economic growth outlook.
Interest rate dynamics were benign for performance. Long term yieldo fell slightly, regaining a small portion of their February and March looseo. Portfolio duration remains close to the target strategic duration of 2 years. The relatively short target strategic duration protects the portfolio from interest rate volatility such as the rising yields seen in February.
Alongside the strategic target, duration is managed in line with signalling from our proprietary tactical aooet allocation model. The model is used to determine valuation, economic cycle and technical indicators, and the combined signal remained negative throughout the month. The portfolio retains a diversified profile and is well positioned to take advantage of the constructive credit outlook.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/172235154-1.pdfDecember, 2020
The portfolio collected strong running income across all sectors. This contribution to positive carry was primarily associated with allocations to non-financial corporates and domestic banks. The running yield at month end was 1.52%.
Credit spread tightening comprised the key contributing factor in performance. Credit spreads continued to tighten although less dramatically than during the November rally. Credit spreads benefitted from improving macro expectations and investor confidence following the US presidential election and COVID vaccine news.
Domestic spreads were resilient in late December as travel restrictions were reintroduced to combat the spread of COVID-19 in New South Wales. Portfolio allocation to non-financial corporates and domestic banks were the most significant contributors to performance. Property and offshore banking spreads also contributed.
Interest rate dynamics were marginally positive for performance in December, in spite of the steepening yield curve. Duration was tactically reduced to near zero in November and the portfolio was insulated from losses as the yields rose at the long end. Later in the month, duration was increased slightly in line with signalling from our proprietary tactical asset allocation model. The model is used to determine valuation, economic cycle and technical indicators, and during December remained negative for bonds. Valuation indicators improved over the month leading duration to be reintroduced to the portfolio though remaining below the strategic target duration of 2-2.5 years.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/164029026.pdfasset_class: Fixed Income
asset_category: Diversified Credit
peer_benchmark: Fixed Income - Diversified Credit Index
broad_market_index: Global Aggregate Hdg Index
manager_contact_details: Array
ticker: PER0557AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.perpetual.com.au/funds/perpetual-dynamic-fixed-income-fund/?product=INV-PIWDFI
Download Fund Profile
fund_features:
Perpetual Wholesale Dynamic Fixed Income is a diversified portfolio of quality fixed income investments. The Fund is an absolute return fund that seeks to provide investors with a regular income and consistent returns. The Fund actively invests in fixed and floating rate, credit and government securities. It aims to provide capital stability and regular income by investing in a diversified range of income generating assets.
- Seeks to take advantage of credit and interest rate opportunities and believe that this flexibility can help the Fund achieve stable returns.
- Has a strategic interest rate risk (duration) exposure.
- Seek to make tactical adjustments to duration risk to reflect our interest rate views.
structure: Managed Fund