Macquarie reviews balanced funds
Macquarie Funds Managementhas given its diversified balanced funds a more conservative tilt after conducting a wide-ranging review into the structure of the funds.
The changes will see Macquarie drop its weighting to growth assets by five per cent, with the benchmark allocation to Australian shares falling from 35 to 30 per cent to accommodate an increased exposure to Australian fixed interest and cash.
Australian fixed interest will now make up 17.5 per cent of Macquarie’s balanced funds, up from 15 per cent, while cash will increase from 0 to 2.5 per cent of the balanced funds’ total portfolio under the updated asset allocation.
The exposure of Macquarie’s balanced funds to international shares (20 per cent), property (10 per cent), and international fixed interest (10 per cent), will remain unchanged.
Ratings houseInvestorWebsays the asset allocation changes were made in an attempt to reduce risk and provide a better overall balance.
In making the decision to alter its asset allocation, Macquarie took into account the risk return trade off between Australian equities and international equities and the correlations of equities and bonds, InvestorWeb says.
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