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
| Name | Coolabah Floating-Rate High Yield PIE Fund |
|---|---|
| Scheme | Coolabah Investment Funds |
| Investment Objective | To provide investors with exposure to a portfolio of investment-grade Australian floating-rate notes with enhanced yields |
| Inception Date | 6-Dec-2023 |
| Inception Date Of Underlying Strategy | 5-Dec-2022 |
| Applications | Daily |
| Withdrawals | Daily (T+4) |
| Distribution Frequency | Quarterly |
| Distribution Method | Reinvestment or paid out |
| Fund Host | FundRock NZ |
| Investment Manager | Coolabah Capital Investments (Retail) |
| Supervisor | Public Trust |
| Fund Administrator | Apex NZ |
| Custodian | BNP Paribas |
Pricing Information
| Name | Coolabah Floating-Rate High Yield PIE Fund |
| Management Costs | 1.00% pa including GST |
| Performance Fee (%) | Not applicable |
| Benchmark | Bloomberg 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 | $1,000 NZD |
| Buy Spread | 0.000% |
| Sell Spread* | 0.050% |
Distributions
Distribution Per Unit ($)
| Quarter Ending | Floating-Rate High Yield PIE |
|---|---|
| 27-Jun-24 | 0.022 |
| 28-Mar-24 | 0.021 |
Contact Us
For any account or transaction related queries, please contact FundRock NZ.
FundRock NZ
- Phone: +64 4999 654
- Email: contact@fundrock.com
- Address: PO Box 25003, Wellington 6140, New Zealand
For all investment related enquiries, please contact our customer service department:
Coolabah Capital Investments
- Phone: +61 (0) 2 8315 3472
- Email: info@coolabahcapital.com
- Address: Level 3, 1 Bligh Street, Sydney, NSW Australia 2000
Frequently Asked Questions
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.
AUSTRALIA
SYDNEY
Level 3, 1 Bligh Street, Sydney NSW 2000
MELBOURNE
Level 38, South Tower, 80 Collins Street, Melbourne VIC 3000
UNITED KINGDOM
LONDON
Second Floor, 28 Austin Friars, London EC2N 2QQ
NEW ZEALAND
AUCKLAND
Level 17, 1 Albert Street
Auckland CBD, Auckland 1010