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Alpha Generating strategies

Coolabah Capital Investments (CCI) offers a rich range of active credit alpha solutions under the Smarter Money Investments (SMI), BetaShares and CCI umbrellas. All utilise our unique intellectual edge furnished by one of the largest teams in investment-grade fixed-income, including 11 portfolio managers and traders and 12 analysts.

The Strategies

Coolabah has a wide range of actively managed fixed income strategies for retail, wholesale and institutional investors.

Publicly available strategies are offered through Coolabah’s wholly owned subsidiary Coolabah Capital Investments (Retail), previously known as retail fund manager, Smarter Money Investments (SMI). These include: 

  1. the Smarter Money Fund (SMF), which targets liquid, zero-duration returns of 1.0% to 2.0% p.a. above the RBA cash rate after all fees with a target average A credit rating (with no leverage); 
  2. the Coolabah Short Term Income Fund, which targets liquid, zero-duration returns of 1.5% to 3.0% p.a. above the RBA cash rate after all fees with a target average A credit rating (with no leverage);
  3. the Coolabah Floating-Rate High Yield Fund (Managed Fund) (YLD), which provides exposure to a portfolio of investment-grade Australian floating-rate notes with enhanced yields;
  4. the Smarter Money Long Short Credit Fund (LSCF), which targets liquid, zero-duration returns of 4.0% to 6.0% p.a. above the RBA cash rate after all fees with a target average A credit rating;
  5. the Coolabah Long-Short Opportunities Fund (LSOP), which targets liquid, zero-duration returns of 8.0% p.a. above the RBA cash rate after all fees with a target average A credit rating;
  6. the Coolabah Active Composite Bond Fund (Hedge Fund) (FIXD), which targets liquid, long-duration returns of 1.0% to 2.0% p.a. above AusBond Composite 0+Yr Index after all fees with a target average A credit rating; 
  7. the Coolabah Active Sovereign Bond Fund (ABSF), a liquid AAA rated government bond strategy which offers both zero-duration and long-duration exposure that targets returns of 3% to 5% p.a. above their Benchmarks; and
  8. two foreign currency strategies, including a US Dollar Short Term Income and a Long-Short Credit strategy.

These strategies are available to institutional investors in a customisable mandate or fund format to suit any risk and return profile.

Public Strategies

SMARTER MONEY FUND

The Smarter Money Fund (SMF) aims to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.0% to 2.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

The SMF is a daily liquidity solution that invests in cash and investment-grade fixed-income assets that are hedged to a floating-rate (ie, not fixed-rate) exposure, which means it has near-zero interest rate (duration) risk. 

SMF cannot invest in hybrids or use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.

SMF is listed on numerous investment platforms. It is also rated by many researchers, including Mercer, Lonsec, Atchison and Foresight Analytics. The strategy has daily redemption rights.

RBA Cash Plus 1.0% to 2.0% p.a. Strategy

COOLABAH SHORT TERM INCOME FUND

The Coolabah Short Term Income Fund aims to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.5% to 3.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

The Fund is a daily liquidity solution that invests in cash and fixed-income assets that are hedged to a floating-rate (ie, not fixed-rate) exposure, which means it has near-zero interest rate (duration) risk. 

It cannot use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.

It’s listed on numerous investment platforms. It is also rated by many researchers, including Foresight Analytics. Lonsec, Mercer and Zenith. The strategy has daily redemption rights.

RBA Cash Plus 1.5% to 3.0% p.a. Strategy

COOLABAH FLOATING-RATE HIGH YIELD FUND (MANAGED FUND)

The Coolabah Floating-Rate High Yield Fund (Managed Fund) focuses on generating higher income than other traditional fixed income investments by investing in a portfolio of investment-grade Australian Floating-Rate Notes (FRNs) with enhanced yields.

It invests in a portfolio of cash securities and floating-rate, Australian bank-issued senior and Tier 2 bonds with an average rating of “A-”. It has the capacity to invest in government bonds and corporate bonds.

 

INVESTMENT GRADE, HIGH YIELDING STRATEGY

SMARTER MONEY LONG-SHORT CREDIT FUND

The Smarter Money Long-Short Credit Fund (LSCF) aims to actively exploit mispricings in global cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 4% to 6% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

LSCF is a daily liquidity solution that invests in cash and fixed-income assets that are hedged to a floating-rate (ie, not fixed-rate) exposure, which means it has near-zero interest rate (duration) risk. 

LSCF is typically placed in the “unconstrained fixed-income”, “high yield”, or “defensive alternative” universes.

LSCF is listed on numerous investment platforms. It is also rated by many researchers, including Lonsec, Atchison and Foresight Analytics. The strategy has daily redemption rights.

RBA CASH PLUS 4.0% TO 6.0% P.A. Strategy

COOLABAH LONG-SHORT OPPORTUNITIES FUND

The Coolabah Long-Short Opportunities Fund (LSOP) aims to actively exploit mispricings in global cash, bond and bank equity markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 8% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

LSOP is a daily liquidity solution that invests in cash, fixed-income securities and listed equity providing investors with exposure to the full capital structure of Australian and overseas banking groups. All fixed-rate assets are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk. 

RBA CASH PLUS + 8.0% P.A. Strategy

COOLABAH ACTIVE COMPOSITE BOND FUND (HEDGE FUND)

The Coolabah Active Composite Bond Fund (Hedge Fund) is our market-leading, daily liquidity, long duration, active composite bond strategy. This was previously an institutional strategy for super funds that was not available to the public, which we are now excited to bring to you as an exchange quoted managed fund on Cboe Australia under the ticker FIXD. The Fund can also be accessed by applying directly with the Fund Administrator, Apex Fund Services, under the APIR Code ETL2716AU.

The Coolabah Active Composite Bond Fund (Hedge Fund) seeks to deliver superior risk-adjusted returns to the Bloomberg AusBond Composite Bond Index through harnessing Coolabah’s active credit alpha style that focusses on systematically exploiting mispricings to generate capital gains in addition to yield.

AUSBOND COMPOSITE BOND INDEX + 1.0% TO 2.0% P.A. Strategy

COOLABAH ACTIVE SOVEREIGN BOND FUND

The Coolabah Active Sovereign Bond Fund (ASBF) aims to generate excess returns of 3% to 5% p.a. above its benchmark through exploiting relative value mis-pricings in high quality government bonds and related derivatives that have a low correlation to equity markets, credit markets and the level of interest rates.

The Zero Duration Class (ETL9561AU) aims to deliver the Fund’s investment strategy over its Benchmark, the RBA Overnight Cash Rate. It offers a floating interest rate exposure resulting in low or near-zero interest rate risk.

The Long Duration Class (ETL5578AU) aims to deliver the Fund’s investment strategy over its Benchmark, the Bloomberg AusBond Treasury 0+ Yr Index. It offers fixed-rate bond exposure by matching its interest rate duration to that of the Index.

Foreign Currency Strategies

USD Strategies

CCI offers Australian based investors with US dollars access to the Australian fixed income market through the Short Term Income and Long-Short strategies. These solutions target returns between 1.5% to 3%, and 4% to 6% above the US Federal Funds Target Range.

US Federal Funds Rate Strategies

New Zealand PIE strategies

CCI offers New Zealand based investors access to the Australian and global fixed income market through the following strategies:

All strategies are portfolio investment entities (PIE). This is a New Zealand managed fund that offers investors special tax rules that apply to the income earned by the Fund. The PIE rules mean that investors pay tax on their own tax rate (the Prescribed Investor Rate or PIR), which is usually slightly lower than their income tax rate. Refer to the Product Disclosure Statement for more information.

RBNZ Cash Strategies

Institutional Strategies

Coolabah Capital Institutional Investments (CCII) manages a wide range of customised, active credit alpha strategies exclusively for wholesale and institutional investors in mandate or fund format.

CUSTOM INSTITUTIONAL MANDATES

CCI specialises in building bespoke direct portfolios of investment grade and/or sub-investment grade credit alpha strategies with risk and return preferences tailored to client needs, including long and long-short strategies that are unlevered or levered.

BETASHARES ACTIVE AUSTRALIAN HYBRIDS FUND

HBRD is the first “active” fixed-income ETF in Australia that provides access to a diversified portfolio of cash, bonds and hybrid securities. HBRD aims to outperform the RBA cash rate plus 2.5% pa, which it has done since inception, while seeking to reduce the volatility and downside risk that may otherwise be experienced by direct holders of hybrids.

Fund Comparison

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Long Only Strategies

Smarter Money StrategyShort Term Income StrategyBetashares HBRD ETF
StrategySmarter Money IncomeShort-Term IncomeHybrid Securities
DomicileAustraliaAustraliaAustralia
CurrencyAUDAUDAUD
APIR CodeCRE0014AUSLT0052AUASX: HBRD
Investment ObjectiveRBA + 1%-2% p.a. after feesRBA + 1.5%-3% p.a. after feesRBA + 2.5% p.a. after fees
Target Volatility< 1% p.a.< 2% p.a.3%-4% p.a.
Inception Date17-Feb-128-Oct-1413-Nov-17
Responsible EntityEquity TrusteesEquity TrusteesBetaShares Capital
RegistryApex Fund ServicesApex Fund ServicesLink Market Services
CustodianApex Fund ServicesApex Fund ServicesRBC Investor Services
ApplicationsDailyDailyDaily
WithdrawalsDaily (T+3)Daily (T+3)Daily (T+2)
DistributionsQuarterlyQuarterlyMonthly
Minimum Investment$1,000$1,000None
Additional Investment$1,000$1,000None
Savings PlanMonthlyMonthlyN/A
Savings Plan Minimum$100$100N/A
Buy/Sell Spread*

0.00%/0.025%

0.00%/0.025%

On Market
GearingNoNoNo
ShortingNoNoNo
See More

Geared & Alternative Strategies - Zero Duration

Floating-Rate High Yield StrategyLong-Short Credit StrategyLong-Short Opportunities StrategyCoolabah Active Sovereign Bond Fund - Zero Duration Class
StrategyHigh YieldUnconstrained Fixed IncomeUnconstrained Fixed IncomeGovernment Bond
Interest Rate Exposure TargetFloating-Rate (< 3mths)Floating-Rate (< 3mths)Floating-Rate (< 3mths)Floating-Rate (< 3mths)
DomicileAustraliaAustraliaAustraliaAustralia
CurrencyAUDAUDAUDAUD
APIR CodeETL5010AUSLT2562AUETL9059AUETL9561AU
Investment ObjectiveA portfolio of floating-rate notes with enhanced yieldsRBA + 4%-6% p.a. after feesRBA + 8% p.a. after feesRBA Overnight Cash Rate + 3%-5% p.a. after fees
Target VolatilityNone< 5% p.a.< All Ords Index< 4% p.a.
Inception Date5-Dec-2231-Aug-171-May-2013-Dec-23
Responsible EntityEquity TrusteesEquity TrusteesEquity TrusteesEquity Trustees
RegistryApex Fund ServicesApex Fund ServicesApex Fund ServicesApex Fund Services
CustodianApex Fund ServicesApex Fund ServicesApex Fund ServicesApex Fund Services
ApplicationsDailyDailyDailyDaily
WithdrawalsDaily (T+3)Daily (T+3)Daily (T+3)Daily (T+3)
DistributionsQuarterlyQuarterlyQuarterlyQuarterly
Minimum Investment$1,000$1,000$1,000None
Additional Investment$1,000$1,000$1,000None
Savings PlanMonthlyMonthlyN/AN/A
Savings Plan Minimum$100$100N/AN/A
Buy/Sell Spread*

0.00%/0.05%

0.00%/0.05%

0.00%/0.05%

0.00%/0.01%

GearingYesYesYesYes
ShortingNoYesYesYes
See More

Geared & Alternative Strategies - Long Duration

Coolabah Active Composite Bond Fund (Hedge Fund)Coolabah Active Sovereign Bond Fund
StrategyComposite BondGovernment Bond
Interest Rate Exposure TargetMatched to the Composite Bond Index (Fixed-Rate Bond Exposure)Matched to the Treasury Bond Index (Fixed-Rate Bond Exposure)
DomicileAustraliaAustralia
CurrencyAUDAUD
APIR CodeCXA: FIXDETL5578AU
Investment ObjectiveAusBond Composite 0+Yr Index + 1%-2% p.a. after feesAusBond Treasury 0+Yr Index + 3%-5% p.a. after fees
Target VolatilityNone< 4% p.a.
Inception Date7-Mar-1713-Dec-23
Responsible EntityEquity TrusteesEquity Trustees
RegistryApex Fund ServicesApex Fund Services
CustodianApex Fund ServicesApex Fund Services
ApplicationsDailyDaily
WithdrawalsDaily (T+2)Daily (T+4)
DistributionsQuarterlyQuarterly
Minimum InvestmentNoneNone
Additional InvestmentNoneNone
Savings PlanN/AN/A
Savings Plan MinimumN/AN/A
Buy/Sell Spread*On Market

0.00%/0.01%

GearingYesYes
ShortingYesYes
See More

Foreign Currency Strategies

USD Short Term Income StrategyUSD Long-Short Credit Strategy
StrategyShort-Term IncomeUnconstrained Fixed Income
DomicileAustraliaAustralia
CurrencyUSDUSD
Investment ObjectiveUS Fed Fund Target Range + 1.5%-3% p.a. after feesUS Fed Fund Target Range + 4%-6% p.a. after fees
Target Volatility< 2% p.a.< 5% p.a.
Inception Date8-Oct-1431-Aug-17
Responsible EntityEquity TrusteesEquity Trustees
RegistryApex Fund ServicesApex Fund Services
CustodianApex Fund ServicesApex Fund Services
ApplicationsDailyDaily
WithdrawalsDaily (T+5)Daily (T+5)
DistributionsQuarterlyQuarterly
Minimum Investment$1,000 USD$1,000 USD
Additional Investment$1,000 USD$1,000 USD
Buy/Sell Spread*

0.00%/0.025%

0.00%/0.05%

GearingNoYes
ShortingNoYes
See More

From 5 October 2021, a Target Market Determination (TMD) is required to be made available under the Design & Distribution Obligations. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.

*The Buy Sell Spread may change depending on the transaction costs associated with buying and selling the assets within the Fund’s portfolio at that time. Any changes to the spreads after the date of the PDS will be published here.

Disclaimer: Past performance does not assure future returns. Returns are shown after all fund fees, unless otherwise stated. Retail product fees can vary depending on the unit class selected and/or whether the financial advisory firm has negotiated access to lower cost unit classes.

Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975, is the responsible entity for the Smarter Money Fund (SMF), the Coolabah Short Term Income Fund (STIF), Smarter Money Long-Short Credit Fund (LSCF), Coolabah Long-Short Opportunities Fund (LSOP), the Coolabah Floating-Rate High Yield Fund (Managed Fund) (YLD), the Coolabah Active Composite Bond Fund (Hedge Fund) (Ticker: FIXD), and the Coolabah Active Sovereign Bond Fund (ASBF). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT).

Public Trust is the Supervisor and FundRock NZ Limited (FundRock) is the issuer and manager of the Coolabah Investment Funds (Scheme), including the Coolabah Short Term Income PIE Fund, the Coolabah Floating-Rate High Yield PIE Fund, the Coolabah Long-Short Credit PIE Fund and the Coolabah Active Composite Bond PIE Fund. Coolabah Capital Investments (Retail) Pty Ltd ACN 153 555 867 is the Investment Manager.

This has been prepared by Coolabah Capital Investments (Retail) Pty Ltd ACN 153 555 867 (Coolabah), an authorised representative (#000414337) of Coolabah Capital Institutional Investments Pty Ltd ABN 85 605 806 059 AFSL 482238, to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. The Product Disclosure Statement (PDS) for the Fund should be considered before deciding whether to acquire or hold units in it. A PDS for the Fund can be obtained by visiting www.coolabahcapital.com. Neither Coolabah, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. The Fund is subject to investment risks, which could include delays in repayment and/or loss of income and capital invested.

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