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The aim of the Fund is to actively manage a portfolio of Australian fixed income securities with a focus on income generation and capture of sustainable credit premia (with certain risk mitigation measures implemented) to generate a return over a full market cycle which exceeds that delivered by the Australian bank bill rate.

Inception date February 2013
Benchmark Bloomberg AusBond Bank Bill
Management fee Negotiable
Performance fee Nil
Buy/Sell spread Nil
Minimum investment Negotiable
Investment approach
  • The Fund aims to generate returns of 125 bps above its benchmark;
  • The Fund has very low interest rate duration risk primarily investing in floating rate securities and hedging longer dated fixed interest exposure. There are however other risks associated with the Fund’s investments (see below under Risks section);
  • We consider the Fund’s principle risk is credit risk;
  • Credit strategies combine our 'top-down' macro view with focused 'bottom-up' credit analysis.
  • The Fund holds corporate bonds, FRNs, Money Market instruments etc which are all denominated in Australian dollars
  • All security investments are investment grade with a minimum rating of BBB- (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 portfolio will utilise derivatives efficiently to mitigate various 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

Mark Kiely

Portfolio Manager

Ken Hyman

Investment Manager

Jonathan Goh

Assistant Portfolio Manager