MAB Quarterly Review Q1 2025 - Cautious - Flipbook - Page 5
New buys
GMO Quality Fund:
Coolabah Credit Alpha Fund:
We replaced the Brown Advisory Global Leaders
Fund with the GMO Quality Fund. We got to know
this manager over a number of years as they had sat
on our “substitute bench”. GMO has historically been
a value-oriented 昀椀rm, however, in recent decades,
they have developed highly successful capabilities
in the quality investment style, often at the more
price-sensitive end of the quality manager universe.
The fund has a strong long-term track record
and has outperformed both the asset class and the
style-speci昀椀c benchmark. We believe there is a lot
to like about their approach, particularly their
decision-making process when it comes to sizing
higher-risk positions.
Over the quarter, we added the Coolabah Credit Alpha
Fund to our active Fixed Income manager blend.
Coolabah Capital is a unique investment company
from Australia that focuses on corporate bonds (loans
to big companies with strong 昀椀nances). They use data
analysis and active trading to 昀椀nd good opportunities
when bonds are mispriced. This approach has helped
them deliver strong and steady returns since they
started in 2011. Importantly, this fund avoids the risk
of rising or falling interest rates, which can affect many
other bond investments. Coolabah also considers
environmental, social, and governance (ESG) factors
in its decisions and has strong systems in place to
manage risk and protect investors’ money. Overall, we
believe adding Coolabah to our mix of 昀椀xed income
investments makes sense in today’s market and helps
reduce our exposure to interest rate changes.
Amundi Global Aggregate
Bond ETF:
We replaced the Vanguard Global Aggregate Bond
ETF with the Amundi Global Aggregate Bond ETF.
Amundi is one of Europe’s largest asset managers
and are in the top 10 providers in the world. They
have a 30+ year track record with more than 100
indices replicated in Equity & Fixed Income. The
Amundi Global Aggregate Bond ETF aims to closely
track the Bloomberg Global Aggregate Index,
providing exposure to high-quality bonds globally.
The fund is designed to replicate the benchmark
without making any signi昀椀cant adjustments to the
underlying portfolio, helping to ensure ef昀椀cient
index tracking.
54
Manager Meetings
We attended 54 meetings during the quarter to review
existing and prospective managers.
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