Coolabah Capital Investments Pty Ltd (CCI) is an independent active credit manager founded in 2011 by Christopher Joye and Darren Harvey, and Chaired by experienced super fund director Melda Donnelly.
CCI is 75% owned by its investment team and 25% owned by the multi-billion dollar investment entity, AMB Holdings, which also co-invests in CCI’s portfolios. CCI owns 50% of the retail fund manager Smarter Money Investments Pty Ltd (SMI) in combination with a retail distribution partner. In 2016 SMI was a finalist for Money Management / Lonsec’s “emerging fund manager of the year”award.
CCI is responsible for managing SMI’s portfolios, the BetaShares Active Australian Hybrids ETF (ASX: HBRD), and other institutional mandates worth over $3.0 billion. SMI’s first active short-term fixed-interest solution, called the Smarter Money Active Cash (SMAC) strategy, was launched in February 2012. SMI’s second active credit solution, called the Smarter Money Higher Income (SMHI) strategy, was publicly launched on 1 October 2014. SMI’s absolute return hedge fund solution, called the Long Short Credit Fund, was launched on 1 September 2017. The BetaShares Active Australian Hybrids ETF (ASX: HBRD) was listed on the ASX on 13 November 2017.
CCI’s comparative advantages are in active cash management, active asset selection, top-down and bottom-up quantitative valuation analysis, and minimising credit and interest rate duration risks. CCI believes that there is a significant role for liquid, low duration active credit exposures to play in both individual and institutional portfolios. This is particularly true in a world where interest rates are near record lows and duration risks have elevated to all-time highs.
CCI’s portfolio managers have decades of fixed-interest trading and research experience and are augmented by an institutional-sized credit and quant research capability that focuses on identifying and mitigating downside risks. The team’s investment philosophy fuses both bottom-up and top-down quant asset pricing, credit rating and macro research with intensive qualitative due diligence. As the performance analysis here shows, SMAC and SMHI have consistently outperformed their peers and benchmarks.