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About Arculus

An Australian fixed income manager, unconflicted at every decision-making point.

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Who we are

Arculus Funds Management (GCI Australia AFSL 346034) is an Australian fixed income manager, operating since 2013. We are the investment manager for two retail unit funds and a number of wholesale strategies and private mandates, for family offices, charities and wealth advisory groups.

Arculus takes its name from the Roman god of strongboxes. The investment team has decades of experience across fixed income, equities, derivatives and hybrids, through several full market cycles.

If we can't analyse it properly, we don't own it

Fixed income management is about minimising risk: geopolitical and global macroeconomic, domestic macroeconomic, interest rate, government policy, regulatory and issuer-specific.

We manage it through top-down macroeconomic analysis and bottom-up credit analysis. Every issuer has a three-way model with credit ratios and a quarterly credit note. Portfolios are analysed daily against the administrator's valuations. Securities too opaque for that work, including RMBS, ABS and CMBS, are excluded.

Four eyes on every transaction

Arculus makes the investment decisions. It does not hold the assets, value them, or sign off on its own mandate compliance. Those roles sit with three independent institutions.

More on governance & oversight

  • Investment Manager — Arculus Funds Management

    Sets strategy, selects securities and manages the portfolio within the mandate. Reports to the Investment Committee.

    Meet the team

  • Responsible Entity — DDH Graham

    Holds the AFSL under which the funds are operated, holds scheme property on trust for investors, monitors mandate compliance and is responsible for the funds' regulatory obligations and audited annual reporting. The RE's duty is to investors, not to Arculus.

    ddhgraham.au

  • Administrator — SS&C

    Values the portfolio and calculates performance daily, independently of the investment manager. Maintains the unit register and processes applications and redemptions.

    ssctech.com

  • Custodian — Northern Trust

    Holds the securities on behalf of the funds. Assets are never held by Arculus.

    northerntrust.com

How we invest

No performance fee

We don’t take a performance fee, so we are capital preservation focused. All of our peers take performance fees that reward them for taking risk in an asset class where returns are driven by the coupon yield.

Absolute return

We are an absolute return manager. What this means is that we are benchmark unaware and will vary duration at different points in the economic cycle. In times of rising rates we are very low fixed duration and due to the systemic economic risk of the rate rises also currently low credit spread duration. When rates peak, we will increase duration and benefit from the capital gains in a falling rate environment.

Australian issuers, AUD only

The investment universe for all our funds is Australian issuers only in AUD. What this means is that there is no currency risk, and regulatory risk changes are limited to Australia and bonds that are issued under Australian law. We do not employ leverage either directly or through the use of derivatives.

No securitised or property exposure

We have no mandated exposure to the MBS, CMBS or ABS securities and no property loans or property developer exposures.

Environmental, social and governance

The same ESG policy applies across all our mandates. Our credit analysis looks first at each issuer's governance structures.

We do not invest in gambling, fossil fuel mining, weapons, tobacco or drugs, and we exclude any business that relies on a supply chain using modern slavery.

More on ESG

Talk to us about how we invest

Enquiries go directly to the portfolio management team.

Get in touch

Important information

Arculus Funds Management Pty Ltd (ABN 74 661 739 340) is an Authorised Representative (No. 1298896) and wholly owned subsidiary of GCI Australia Pty Ltd (ABN 68 140 364 576; AFSL No. 346034). Arculus Funds Management is authorised by GCI Australia to provide particular financial services to those who qualify as a ‘Wholesale Client’ in accordance with the Corporations Act.

This website has been prepared and issued by Arculus Funds Management to provide you with general information only. It is not intended to take the place of professional advice and you should not act on a recommendation or statement of opinion without first considering the appropriateness of the general advice to your personal circumstances or consulting your investment advisor to determine whether the recommendation or statement of opinion is appropriate for your investment objectives, financial situation or needs. Neither Arculus Funds Management, DDH Graham Limited nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the relevant Product Disclosure Statement before making a decision about whether to invest in any product.