What are MM’s thought on XARO Bond Fund?
Hi James and team Can you give an updated view on XARO please
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Answer
Hi Peter,
The XARO is a good fund / strategy that we used to hold, however sold out to add ‘duration’ to our Income Portfolio. Their strategy is around relativity. Buying undervalued bonds and shorting overvalued bonds and making money that way. They don’t have much exposure to actual changes in rates and how that impacts bond prices – as they get the benefit on the shorts when rates go up which is offset by the longs. Ultimately, it is a good strategy when uncertain about the direction of rates. In our view, we want to be locking in the returns from higher rates so are more inclined to buy fixed rate bonds that do that. Hope that makes sense!
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ActiveX Ardea Real Outcome Bond Fund (XARO)
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ActiveX Ardea Real Outcome Bond Fund (XARO)
