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Floating-Rate High Yield PIE

Coolabah Floating-Rate High Yield PIE Fund

INVESTMENT GRADE, HIGH YIELDING, SHORT DURATION STRATEGY

Overview

The Coolabah Floating-Rate High Yield PIE 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.

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

In contrast to fixed-rate bonds, FRNs pay a variable-rate of interest that resets monthly or quarterly and  moves up and down with changes in a recognised reference interest rate. In Australia, FRNs generally track the returns of the Reserve Bank of Australia’s (RBA’s) cash rate via a benchmark proxy called the quarterly Bank Bill Swap Rate (BBSW) plus an additional credit spread, or interest rate margin above BBSW.

Unlike a fixed-rate bond, a FRN has very low interest rate risk given the interest paid by an FRN will be highly correlated with moves in the RBA cash rate.

The Coolabah Floating-Rate High Yield PIE Fund is a 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.

Key Facts

NameCoolabah Floating-Rate High Yield PIE Fund
SchemeCoolabah Investment Funds
Investment Objective To provide investors with exposure to a portfolio of investment-grade Australian floating-rate notes with enhanced yields
Inception Date6-Dec-23
Inception Date Of Underlying Strategy5-Dec-22
ApplicationsDaily
Withdrawals Daily (T+4)
Distribution FrequencyQuarterly
Distribution MethodReinvestment or paid out
Fund HostFundRock NZ
Investment ManagerCoolabah Capital Investments (Retail)
Supervisor Public Trust
Fund AdministratorApex NZ
CustodianBNP Paribas

Pricing Information

Name Coolabah Floating-Rate High Yield PIE Fund
Management Costs1.00% pa including GST
Performance Fee (%)Not applicable
BenchmarkBloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0) pa hedged to NZD
Currency NZD
Minimum Investment$1,000 NZD
Additional Investment$1,000 NZD
Minimum Balance$1,000 NZD
Buy Spread0.000%
Sell Spread*0.050%

Contact Us

For any account or transaction related queries, please contact FundRock NZ.

FundRock NZ

For all investment related enquiries, please contact our customer service department:

Coolabah Capital Investments

Frequently Asked Questions

How do I invest in the Coolabah Investments Funds?

To invest via your financial adviser – Speak with your financial adviser about gaining access.
 
To invest directly with the Fund Administrator – Complete the application form and contact FundRock NZ by emailing contact@fundrock.com or calling + 64 4 4999 654.

How do I make an additional investment in the Coolabah Investments Funds?

To invest via your financial adviser – Speak with your financial adviser about making an additional investment.
 
To invest directly with the Fund Administrator – Complete the additional investment form and contact FundRock NZ by emailing contact@fundrock.com or calling + 64 4 4999 654.

How do I withdraw my investment from the Fund?

Complete a withdrawal form and submit it to FundRock NZ by emailing contact@fundrock.co.nz or calling + 64 4 4999 654. Further instructions are on the form.

If you have invested through a financial adviser or platform, you will need to submit your instruction with their assistance.

*Buy/sell spreads are indicative only. For the most up to date buy/sell spreads see www.fundrock.com. Buy/sell spreads belong to the Funds and are not a fee paid to FundRock NZ or to the investment manager, see page 9 of the PDS for further details.

Disclaimer: Past performance is not indicative of future performance. Returns are shown after all fund fees, unless otherwise stated.

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. Investors are encouraged to seek independent financial advice. 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, FundRock, Public Trust 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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