Macquarie Asset Management has unveiled two new fixed income exchange-traded funds (ETFs) via the ASX.
The Macquarie Global Yield Maximiser Active ETF (MQYM) offers access to actively managed global high yield markets and credit opportunities for Australian investors. The fund seeks to boost portfolio yield while delivering high levels of monthly income with a multisector approach.
Meanwhile, the Macquarie Subordinated Debt Active ETF (MQSD) is also actively managed and predominantly focused on Australian subordinated bonds, with significant exposure to those issued by Australian major banks and other financial institutions.
Macquarie’s two fixed income products build on the existing range of Australian ETFs available through its global active ETF platform that was launched in 2023.
The platform has since expanded to four fixed income and three equity ETFs, while having over $300 million in assets under management (AUM).
According to ASX and Cboe research, the broader Australian fixed income ETF market’s AUM has grown twofold from $13.4 billion in 2021 to $28 billion in 2024 – making it the third-largest ETF asset class in Australia after its international and Australian equity counterparts.
“Fixed income markets can offer attractive returns while providing defensive and diversification benefits for investors, across what is a global and complex investment opportunity set,” described Brett Lewthwaite, chief investment officer and global head of fixed income at Macquarie.
“Against a backdrop of higher yields, central bank and regulatory changes, investors are increasingly seeking active managers to help navigate these market conditions and capture the array of attractive opportunities.”
Blair Hannon, ETF investment strategist at Macquarie, noted that active fixed income ETFs can act as a simple and accessible high yielding solution with the expertise of professional fixed income asset managers.
“In addition, actively managed fixed income ETFs can provide the extra benefit of hands at the wheel helping to diversify across issuers, maturities, credit ratings and capital structure, with low barriers to entry,” Hannon said.
Earlier this month, PIMCO also expanded its fixed income product offering with the launch of four ETFs seeking to democratise active fixed income investing in Australia.
Made available to investors on on Cboe Australia, these were the PIMCO Global Bond Active ETF (PGBF), PIMCO Diversified Fixed Interest Active ETF (PDFI), PIMCO Global Credit Active ETF (PCRD), and PIMCO Australian Bond Active ETF (PAUS).
