MLC enhances debt securities strategy
MLC has made changes to the debt securities strategy in the MLC Horizon portfolios and the MLC Diversified Debt Fund to improve flexibility and diversification, following a review focused on the management of interest rate and credit risk.
The changes are intended to increase MLC’s ability to deliver a more stable return on debt investments, while still focusing on preserving capital when returns from growth assets are weak. The revised debt strategy is expected to perform a more defensive role in a diversified portfolio, MLC said.
As part of the changes, MLC has defined the debt sectors more narrowly by dividing some existing sectors into a number of more specialised ones, while increasing flexibility to alter the allocations to debt sectors in response to market conditions.
"These changes are designed to ensure our debt strategies provide diversification when our investors need it most — during periods of weak share markets," said debt portfolio manager at MLC Investment Management Stuart Piper.
“These changes are intended to give us greater control over our exposure to interest rate and credit risk, more flexibility to respond to changes in market conditions, and increased diversification and specialisation across our managers,” he said.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
