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The aim of the Fund is to actively manage a portfolio of Australian money market and fixed interest securities (with certain risk mitigation measures implemented) to generate a return over a full market cycle which exceeds that delivered by the Bloomberg AusBond Composite 0+ Yr Index.

Inception date August 2010
Benchmark Bloomberg AusBond Composite 0+ Yr Index
Performance fee Nil
Buy/Sell spread Nil
Minimum investment Negotiable
Investment approach
  • We believe debt markets are not efficient and can be systematically exploited, to extract positive returns, within an active management process that also implements risk mitigation measures;
  • We are a ‘top-down’ driven manager employing a scenario based methodology that is combined with a robust risk management process;
  • Strategies are targeted at optimal risk/return opportunities;
  • Sophisticated in-house analytics drive yield curve strategies; the “rolldown” element in yield curves is a key source of excess returns;
  • Credit strategies combine our ‘top-down’ macro view with focused ‘bottom-up’ credit analysis;
  • The Fund has a cautious approach to duration, making it potentially attractive  in terms of risk/return . The maximum deviation in duration is 6 months;
  • All security investments are rated with minimum ratings of A3(Short Term) or BBB- (Long Term) as rated by Standard & Poors; and
  • Core and tactical investment strategies are used to generate excess returns for the portfolio and minimise market volatility.

The Fund utilises various risk mitigation strategies such as interest rate and credit derivatives to protect against adverse market risks.


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

Ken Hyman

Investment Manager