The new fund, the Perennial Tactical Fixed Interest Trust, was launched in response to increasing demand from clients and financial advisers, Perennial said. "[They] wanted a fixed income product that made the tactical decisions between cash, longer duration fixed interest and high-yielding securities throughout the investment cycle, rather than making that difficult decision themselves," Perennial head of fixed interest Glenn Feben said.
The fund aims to provide investment returns in excess of a combined UBS Bank Bill Index and UBS Composite Bond Index benchmark by investing in a diversified portfolio of Australian fixed interest assets.
"Taking into account the outlook for the Australian and global economy, interest rates and the fundamentals of corporates within the credit cycle, the team will adjust the level of exposure to cash, fixed interest and higher-yielding securities to achieve a well-positioned portfolio for our investors over all periods in the economic cycle," Feben said.
