Arculus offers private mandates
- Size greater than AUD$50m
- Investment universe specific to each investor risk and return requirements
- Absolute return focused
- Australian currency only
- Investment management fee negotiable
- All trades made through investors nominated bank or across Arculus panel of dealers
- Administration and custody services done by the investors nominated agents
- Quarterly written reports and annual meeting
- They can take the form of a single managed account
Broadly the private mandates contain the same investment universe as the publicly available retail unit funds with bespoke weighting to each type of bond. This bespoke approach suits High Net worth investors, multi-family offices, charities that have an ESG overlay alongside a defined set of risk criteria.
There are currently 6 private mandates managed by the Arculus Group. The following examples are typical of the bespoke outcomes:
- AA- (S&P rated) or better:
- Size $272m (AUD)
- 30 year history
- Average return 6.45%pa
- Australian dollar only
- Government and financial sector senior bonds
- Absolute return focused
- Current running yield 5.3% and YTM 5.2%.
- BBB- (S&P rated) or better:
- Size $120m (AUD)
- 14 year history
- Average return 7.1% pa
- Australian dollar only
- Universe includes government, financial sector senior, and Tier 2 subordinate bonds
- Absolute return focused
- Current running yield 6.3% and YTM 6.5% (as of 31 March 2025).
An alternative used by some investors is to purchase wholesale units in our publicly available retail funds (Arculus Fixed income and Arculus Preferred Income funds).
