This week SQM upgraded the Coolabah Floating-Rate High Yield Fund to a ‘Superior’ 4.25 stars investment rating.
SQM comments that:
“The Fund drives return by finding security level mispricing in liquid high-grade credit that provides capital gains (“alpha”), which is a point of differentiation to conventional fixed-income managers.”
Further insights from SQM included:
“The investment team is of high quality; comprising of very experienced portfolio management and credit teams and an experienced data science team, all of which work together within a comprehensive and integrated investment process that considers and evaluates returns versus risks”;
“The investment process is robust and is primarily focused on finding anomalies in the pricing of floating rate securities. The Fund has significantly outperformed the benchmark and peers in all periods.”
About the Coolabah Floating-Rate High Yield Fund
- The Coolabah Floating-Rate High Yield Fund focuses on generating higher income than other traditional fixed income investments by investing in a portfolio of investment-grade Australian floating-rate notes with enhanced yields.
- The Fund 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.
- The Fund does not invest in fixed-rate bonds, hybrid securities, equities or property.
- The Fund can borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses. Please read the PDS for risks.
- As of 30 June 2024, the Fund had a 7.1% p.a. running yield after fees.
- Daily redemption rights and no performance fees.
How to invest
Investing in our funds is a very easy process. The various options are:
- Investing directly with the Fund Administrator – you can apply with our fund administrator, Apex Fund Services, under the APIR code ETL5010AU through our website.
- To invest with your financial adviser – the Fund is available on numerous financial planning platforms such as Hub24, Netwealth and Macquarie Wrap. Speak to your financial adviser. You can find a full list of available platforms here.
Please read the Product Disclosure Statement and Target Market Determination before considering whether to invest.
If you have any questions or would like some assistance opening an account, please don’t hesitate to contact us on 1300 901 711 or info@coolabahcapital.com.
Important Documents
Ratings & Research Disclaimers
SQM Research Disclaimer: SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. Information contained in this document attributable to SQM Research must not be used to make an investment decision. The SQM Research rating is valid at the time the report was issued, however it may change at any time. While the information contained in the rating is believed to be reliable, its completeness and accuracy is not guaranteed. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
