Fiducian weighs in with bonds
Fiducian Portfolio Serviceshas increased its exposure to fixed interest with the appointment ofBarclays Global InvestorsOverseas Bond Index Fund to its fixed interest stable of underlying managers.
The appointment represents the second Barclay’s bond fund to be added by Fiducian in the past six months, the first being Barclay’s Australian Bond Index Fund.
Currently managing close to $350 million funds under management, Fiducian investment manager Conrad Burge says its current exposure to fixed interest is underweight as part of its tactical asset allocation strategy.
While Fiducian Portfolio Services exposure to fixed interest will remain underweight for a bit longer, Burge says the outlook for bonds is improving.
He says Fiducian looked at a number of bond managers before it decided on Barclay, as well as using various research surveys to go through the data.
“We have had good experience with them as far as bond managers go. We’re happy with Barclays,” Burge says.
Fiducian uses separate portfolios for Australian, international and inflation-indexed bonds to gain better diversification and returns, with its overall fixed interest exposure nearing $30 million.
“These new additions should benefit Fiducian’s diversified blended funds, including our growth, balanced and capital stable portfolios,” Burge says.
Fiducian uses a manager of manager’s investment approach, drawing on a variety of managers to deliver different investment styles and the benefits of diversification.
AUTHOR
Fiona Moore
Recommended for you
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.
A potential acquisition of Platinum Asset Management by Regal Partners will be beneficial for the “challenged” fund manager, believes Morningstar, but it has warned fund management mergers don’t always run smoothly.
Fund managers made a “big shift” into bond-sensitive sectors like utilities in September and away from cyclicals, while risk appetite is at an 11-month low.
Ahead of the RBA’s upcoming monetary policy meeting next week, BlackRock Australasia has reaffirmed the market’s view that rate cuts are likely out of the picture for 2024.
