Skip to Content

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 Index.

Inception date October 1991
Benchmark Bloomberg AusBond Composite 0+ Yr Index
Management fee Negotiable
Performance fee Nil
Buy/Sell spread Nil
Minimum investment Negotiable
Investment approach
  • The primary focus of the Fund is to add steady incremental returns over the benchmark while closely controlling the volatility in the excess return;
  • 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;
  • 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 3 months;
  • All security investments are well rated with minimum ratings of A2(Short Term) or A- (Long Term) as rated by Standard & Poors;
  • 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