Macquarie Asset Management launches 10th ETF

Macquarie Asset Management (MAM) has launched a low-cost, actively managed fixed income ETF that charges a management fee of 0.09% per annum, making it the 10th strategy in its stable.

The Macquarie Core Australian Bond Active ETF (ASX: MQFI) debuts on the ASX today,

MQFI invests predominantly in Australian bonds and is designed to provide investors with regular income and the potential for consistent alpha. It also charges a performance fee.

Of the total 10 ETFs, half are fixed income strategies.

Commenting on the demand for defensive strategies in the current environment, MAM chief investment officer of global fixed income Brett Lewthwaite said: "We're seeking to outperform the composite bond index here in Australia, and we're doing so at a time when bond yields are particularly topical."

"As we sit here today, US yields are pushing through 5% for the first time in many years. Australian yields are around 5.5%," he told Financial Standard.

"We're launching this at a time when yields are more attractive than they've been since before the Global Financial Crisis and, before that, since the 1990s. Yield levels are fairly attractive."

As part of the range, the Macquarie Global Yield Maximiser Active ETF (ASX: MQYM) and Macquarie Subordinated Debt Active ETF (ASX: MQSD) launched early last year.

MSQD has hit $1 billion in funds under management in that short space of time.

The Macquarie Dynamic Bond Active ETF (MQDB), the Macquarie Income Opportunities Active ETF (MQIO), and the Macquarie Walter Scott Global Equity Active ETF (MQIO) are nearly three years old.

"Genuine fixed income products should perform in line with bond markets. When yields are falling, performance is generally quite strong. When yields are drifting higher, performance can be a little softer," Lewthwaite said.

"But throughout all of that, you're still earning that yield across a diversified portfolio of Australian government bonds, state government bonds and a mix of credit securities as well."

MAM head of ETFs Blair Hannon said: "As the Australian ETF market continues to grow, Macquarie's ETF suite is designed to help a broad range of investors achieve their investment objectives. MQFI further strengthens our ETF offering, providing investors with another building block to help construct diversified portfolios."