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To actively manage a portfolio of Australian money market and fixed interest securities (in a risk controlled manner) to generate a return over a full market cycle which exceeds that delivered by the Australian bank bill rate.

APIR code PPL4961AU
Inception date January 2007
Benchmark Bloomberg AusBond Bank Bill Index
Management fee Management Costs are variable and are estimated to be 0.225% p.a. of the Trust's daily value. See IM for further details.
Performance fee Nil
Buy/Sell spread +0.01% / -0.01%
Minimum investment $5M
Investment approach
  • Interest Rate duration risk is low with the Trust's weighted average duration targeted at less than 6 months. There are however other risks (see under the “Risks” section below).
  • Weighted average credit quality is high and targeted at AA- or better as rated by Standard & Poors.
  • All security investments have a minimum ratings of A2 (Short Term) or A- (Long Term) as rated by Standard & Poors.
  • The Trust's investments are structured to exploit attractive opportunities at the front end of the domestic yield curve.
  • The Trust utilises diversified return seeking strategies with a key focus on capturing spread margin and roll-down of defensive credits.
  • Credit strategies combine our 'top-down' macro view with focused 'bottom-up' credit analysis.
  • Core and tactical investment strategies are used to generate excess returns for the Trust and minimise market volatility.
  • The Trust utilises various risk mitigation strategies such as interest rate and credit derivatives, to protect against adverse market risks.
  • Targeted at clients seeking a moderate yield enhancement with a low tracking error (meaning the volatility of the fund relative to the benchmark)  liquidity and high information ratio, which is the excess return divided by the tracking error.

Risks specific to investments in fixed income instruments may include:

  • credit and default risk (the value of the Fund's investments may be sensitive to changes to credit spreads and/or default due to a deterioration in a bond issuers ability to repay debt)
  • interest rate risk (the value of the relevant Fund’s investments may be sensitive to changes to interest rates)
  • inflation risk (the risk of inflation being higher than anticipated), and
  • liquidity risk (the risk of not being able to find a buyer in a timely manner).
Portfolio Manager

Mark Kiely

Portfolio Manager