Global Floating-Rate High Yield Complex ETF
Coming Soon
Overview
The Coolabah Global Floating-Rate High Yield Complex ETF (CBOE: YLDX) aims to generate higher income than other traditional fixed income investments by investing in a floating-rate portfolio of investment-grade bonds and hybrid securities issued predominately by global banks and insurers and enhancing the yields (or interest-rate) through the use of gearing (or leverage).
Investments
The Fund invests in a portfolio of investment grade senior and Tier 2 bonds and cash securities issued in G10 currencies by bank and insurers. It has the capacity to invest in government bonds, corporate bonds and hybrid securities.
The Fund targets an interest rate duration exposure of less than 3 months by investing primarily in short-term deposits and floating-rate debt securities, also known as ‘Floating-Rate Notes’ (“FRNs”) or ‘Floating-Rate Bonds’. FRNS are a type of bond that pay an interest (or coupon) rate which moves up and down with changes in a recognised reference interest rate. The interest (or coupon) rate is the sum of the reference rate and a spread or margin. In Australia, they generally track the returns of the RBA’s cash rate plus a spread or margin and generally have a low or near-zero interest rate risk.
The Fund may also invest in fixed-rate bonds with maturities greater than 12 months provided the interest rate is hedged to floating.
Coolabah applies bottom-up and top-down fundamental analysis of both issuers of the securities and the credit quality and structural features of the securities themselves to build a portfolio of global cash and debt investments that offer attractive yields whilst minimising the risk of capital loss.
The Fund does not invest in equities, property, sub-investment grade debt or private credit.
The Fund is permitted to use leverage.
Risks
The Fund is not a bank deposit.
It is a managed investment scheme registered and regulated by the Australian Securities and Investments Commission (ASIC).
All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. The Fund can borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses.
To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS and to the Fund’s Target Market Determination (TMD)^.
Ratings
The Fund has received a ‘Superior – More Complex’ rating from Foresight Analytics, a ‘Recommended’ rating from Lonsec and an ‘Recommended’ rating from Zenith Investment Partners.
Please read more about the ratings and disclaimers here and contact us for a copy of the reports.
Qualitative
The Coolabah Global Floating-Rate High Yield Complex ETF (CBOE: YLDX) aims to generate higher income than other traditional fixed income investments by investing in a floating-rate portfolio of investment-grade bonds and hybrid securities issued predominately by global banks and insurers and enhancing the yields (or interest-rate) through the use of gearing (or leverage).
The Fund invests in a portfolio of investment grade senior and Tier 2 bonds and cash securities issued in G10 currencies by bank and insurers. It has the capacity to invest in government bonds, corporate bonds and hybrid securities.
The Fund targets an interest rate duration exposure of less than 3 months by investing primarily in short-term deposits and floating-rate debt securities, also known as ‘Floating-Rate Notes’ (“FRNs”) or ‘Floating-Rate Bonds’. FRNS are a type of bond that pay an interest (or coupon) rate which moves up and down with changes in a recognised reference interest rate. The interest (or coupon) rate is the sum of the reference rate and a spread or margin. In Australia, they generally track the returns of the RBA’s cash rate plus a spread or margin and have a low or near-zero interest rate risk.
The Fund may also invest in fixed-rate bonds with maturities no greater than 12 months provided the interest rate is hedged to floating.
Coolabah applies bottom-up and top-down fundamental analysis of both issuers of the securities and the credit quality and structural features of the securities themselves to build a portfolio of Australian cash and debt investments that offer attractive yields whilst minimising the risk of capital loss.
The Fund does not invest in equities, property or private credit.
The Fund is permitted to use leverage.
The Fund is not a bank deposit.
It is a managed investment scheme registered and regulated by the Australian Securities and Investments Commission (ASIC).
All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed, which can be amplified by the use of leverage.
To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS and to the Fund’s Target Market Determination (TMD)^.
Key Facts
| Name | Coolabah Global Floating-Rate High Yield Complex ETF |
|---|---|
| Exchange Ticker | YLDX |
| Exchange | Cboe Australia |
| Investment Objective | The investment objective of the Fund is to provide investors with exposure to a global floating-rate portfolio of investment-grade bonds and hybrid securities with enhanced yields. |
| Inception Date | Coming Soon |
| Management Costs | 1.00% p.a. |
| Performance Fee (%) | Nil |
| Benchmark | Bloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0) |
| Distribution Frequency | Monthly |
| Distribution Reinvestment Plan (DRP) | Full or partial participation available. |
| Issuer & Responsible Entity | Equity Trustees |
| Investment Manager | Coolabah Capital Investments (Retail) |
| Fund Administrator | Apex Fund Services |
| Registry | Apex Fund Services |
| Custodian | Citigroup |
| Auditor | Ernst & Young |
Pricing Information
An indicative NAV per Unit (“iNAV”) will be published by the Fund throughout the Trading Day. The iNAV will be updated using a real time fair value methodology that seeks to ensure that the iNAV reflects movements in markets and currencies during the Trading Day.
The iNAV represents the best estimate by the Responsible Entity or its appointed agents of the value per unit in the Fund throughout the trading day. No assurance can be given that the iNAV will be published continuously or that it will be up to date or free from error. To the extent permitted by law, neither the Responsible Entity nor its appointed agent shall be liable to any person who relies on the iNAV. The price at which Units trade on the Securities Exchange may not reflect the NAV per Unit or the iNAV and may differ from the price received when applying for or redeeming with the Responsible Entity. Please refer to the Product Disclosure Statement for further details on this Risk.
| Net Assets* ($AUD) | $0 |
| Units Outstanding * (#) | 0 |
| NAV/Unit (Final)* | $50.00 |
| ARSN | 682 667 072 |
| Exchange Code | YLDX |
| ISIN | AU0000380826 |
| Bloomberg Code | YLDX AU |
| Bloomberg iNAV Code | YLDXIV |
Performance
| Period Ending 2025-01-31 | Gross Return | Net Return | AusBond Composite 0+Yr Index | Gross Excess Return | Net Excess Return |
|---|---|---|---|---|---|
| 1 month | 0.43% | 0.37% | 0.19% | 0.25% | 0.18% |
| 3 months | 2.29% | 2.16% | 1.84% | 0.45% | 0.32% |
| 6 months | 2.71% | 2.38% | 1.44% | 1.27% | 0.93% |
| 1 year | 6.69% | 5.88% | 2.91% | 3.77% | 2.96% |
| 3 years pa | 2.68% | 1.98% | -0.39% | 3.07% | 2.37% |
| 5 years pa | 1.92% | 1.16% | -0.60% | 2.52% | 1.76% |
| Inception pa Mar. 2017 | 3.91% | 3.20% | 1.76% | 2.15% | 1.45% |
Past performance does not assure future returns. Returns for periods longer than one year are annualised. Net returns are calculated from the historic gross returns using the current fee structure as displayed in the Product Disclosure Statement.
Past performance does not assure future returns. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the Securities Exchange.
Returns are after all fund costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund.
Distributions
Distribution Per Unit ($)
Platform Availability
| Platform | Unlisted | Exchange Traded |
|---|---|---|
| APIR Code / Ticker | ETL2716AU | FIXD |
| ASX/Cboe | No | Yes |
| AMP North | No | Yes |
| Australian Money Market | Yes | No |
| Beacon | No | No |
| BT Asgard | No | Pending |
| BT Panorama | Yes | Pending |
| Credit Suisse | Yes | Yes |
| Crestone | Yes | Yes |
| Diversa | No | No |
| FirstWrap | No | Pending |
| Hub24 | Pending | Yes |
| IOOF Pursuit | No | Pending |
| Key Invest | No | No |
| Macquarie Wrap | No | Pending |
| mFunds | No | No |
| Mason Stevens | Yes | Yes |
| MLC Navigator | No | Pending |
| MLC Wrap | No | Pending |
| Morgan Stanley | No | No |
| Netwealth | Yes | Pending |
| OneVue | No | Yes |
| Perpetual WealthFocus | No | No |
| Powerwrap | Yes | Yes |
| Praemium | Yes | Yes |
| UBS | No | No |
| uXchange | No | Yes |
| Wilsons Advisory | No | No |
^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.
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 Fund. 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).
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.
Ratings & Research Disclaimers
Lonsec Research
The rating issued 10/2023 ETL2716AU, 10/2023 FIXD are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
Zenith Investment Partners
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned ETL2716AU & FIXD June 2024) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
AUSTRALIA
SYDNEY
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