Global Macro Strategies
19 July 2013
Aongus O'Gorman


Many investors in Australia have created direct global macro programs in the last few years. These programs have performed relatively poorly compared with risk assets such as equities and whilst there is some understanding of these outcomes, portfolio managers are under pressure.

Global macro portfolios typically contain a number of factor exposures and being able to understand these factors is important in order to understand why managers may generate returns, and how to compare and construct manager portfolios.

In order to succeed, global macro programs need strong governance frameworks, in particular strong stakeholder buy-in, and an achievable set of investment objectives. Our biggest concern is that these elements are not present in all portfolios and we would encourage investors to review their approach to ensure they are best placed to survive short-term underperformance.

For the most part we see this as a greater risk at present than the managers that local investors have allocated to. Please contact us if you would like a copy of this Perspective.

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