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The aim of the Trust is to actively manage a portfolio focused on Australian fixed income credit securities, to generate a regular income stream.

Inception date December 2017
Benchmark Bloomberg AusBond Bank Bill
Management fee 0.25% pa of the Trust’s net asset value (inclusive of GST, net of RITC)
Performance fee Nil
Buy/Sell spread Nil
Minimum investment $5M
Investment approach
  • The Trust is focused on investing in credit securities to achieve its objective. The Trust invests primarily in short-term securities, fixed interest rate bonds, floating rate notes, asset-backed securities and other securities issued by banks, corporates and other entities.
  • The Trust aims to generate a stable, regular income stream that’s higher than the earning rate of the Benchmark, by using the following main strategies:
    - Capturing credit term premium and interest rate carry – credit securities will be held in the Trust to generate an attractive yield.
    - Maximising yield curve roll-down – Roll-down is the capital appreciation that results from the yield compression on the Trust’s credit holdings as they approach maturity. Antares targets steep yield curves to boost the roll-down effect.
    - Optimising expected risk adjusted returns – Antares uses its proprietary risk and analytics systems to highlight those securities with the most attractive risk and return trade-offs to generate yield enhancement from the above strategies. This includes breakeven analysis which quantifies the adverse spread/yield movements that could be absorbed by the yield enhancement “buffer”.
  • At all times the overriding priority is to avoid defaults by carefully assessing credit risk of individual issuers. Antares’ assessment of credit risk includes:
    - Physical investments must have an investment grade rating of BBB- or better.
    - Seeking defensive credit investments by selecting issuers operating with stable business models.
    - Potential credit investments are assessed with the expectation of holding the investment through an entire business cycle.
  • The Trust’s overall exposure to credit is strategically managed according to the changing macro environment explained above. Total credit risk is adjusted (by increasing or decreasing) the Trust’s overall credit spread duration.
Risks

The risks of investing in the Trust are typical of the risks of managed investment schemes investing in cash and fixedincome securities. These risks include:

  • Market risk: risks that affect entire risk income markets
  • Interest rate risk: the value of the relevant Fund’s investments may be sensitive to changes to interest rates 
  • Credit risk:
  • Default risk: the risk that the issuer of a security owned by the Trust may not meet their obligations to make a payment of interest, a repayment of capital or some other financial obligation
  • Mark to market risk: the value of the Trust’s investment may be sensitive to changes in credit spreads.  
Portfolio Manager


Mark Kiely

Portfolio Manager


Ken Hyman

Portfolio Manager