Higher Income Strategy

Targets daily liquidity returns in excess of the RBA cash rate plus 1.5% to 3.0% pa net of fees with near-zero interest rate duration risk and an average A rating

Overview

The Smarter Money Higher Income (SMHI) Fund harnesses CCI’s 26 person team (as at April 2021) to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.5% to 3.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

SMHI is a daily liquidity solution that invests in cash and fixed-income assets that are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk. 

SMHI cannot use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.

Since its inception in October 2014, SMHI has delivered post-fee returns that exceed the RBA cash rate plus 1.5% after all fees with low volatility of less than 1.5% per annum. It ranks No1 in FE fundinfo’s Cash Enhanced universe over the last 5 years as at April 2021. Past performance does not assure future returns and investors should read the PDS to better understand this strategy’s risks.

Investments

SMHI actively invests in a portfolio of Australian cash securities and bonds with a target dollar-weighted average credit rating in the “A” band. SMHI does not invest in fixed-rate bonds (unless interest rate risk is hedged out) or equities. SMHI is not permitted to use leverage. 

Applying a diverse array of quantitative asset pricing techniques, SMHI’s portfolio managers add-value through exploiting bond mispricings that seek to generate capital gains over and above the yield provided by the underlying fixed-income assets.

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.

To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS.

Ratings

SMHI is listed on numerous investment platforms.

It is also rated by many researchers, including Atchison, Foresight Analytics, Lonsec, Mercer and Zenith.

Please read more about the ratings and disclaimers here and contact us for a copy of the Lonsec and Zenith reports.

Quantitative

SMHI has been awarded a 5 Crown Rating by FE Fundinfo.

Qualitative

Smarter Money Fund: Superior | Atchison Consultants

The Smarter Money Higher Income (SMHI) Fund harnesses CCI’s 26 person team (as at April 2021) to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.5% to 3.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

SMHI is a daily liquidity solution that invests in cash and fixed-income assets that are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk. 

SMHI cannot use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.

Since its inception in October 2014, SMHI has delivered post-fee returns that exceed the RBA cash rate plus 1.5% after all fees with low volatility of less than 1.5% per annum. It ranks No1 in FE fundinfo’s Cash Enhanced universe over the last 5 years as at April 2021. Past performance does not assure future returns and investors should read the PDS to better understand this strategy’s risks.

SMHI actively invests in a portfolio of Australian cash securities and bonds with a target dollar-weighted average credit rating in the “A” band. SMHI does not invest in fixed-rate bonds (unless interest rate risk is hedged out) or equities. SMHI is not permitted to use leverage. 

Applying a diverse array of quantitative asset pricing techniques, SMHI’s portfolio managers add-value through exploiting bond mispricings that seek to generate capital gains over and above the yield provided by the underlying fixed-income assets.

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.

To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS.

SMHI is listed on numerous investment platforms.

It is also rated by many researchers, including Atchison, Foresight Analytics, Lonsec, Mercer and Zenith.

Please read more about the ratings and disclaimers here and contact us for a copy of the Lonsec and Zenith reports.

Key Facts

NameSmarter Money Higher Income Fund
ARSN601 093 485
Investment ObjectiveTargets returns in excess of the RBA cash rate plus 1.5% to 3.0% after Management Costs
Inception Date08-Oct-14
ApplicationsDaily
WithdrawalsDaily (T+3)
Distribution FrequencyQuarterly
Distribution MethodReinvestment or paid out available
Issuer & Responsible EntityEquity Trustees
Investment ManagerCoolabah Capital Investments (Retail)
Fund AdministratorMainstream Fund Services
RegistryMainstream Fund Services
CustodianMainstream Fund Services
AuditorErnst & Young

Pricing Information

ClassAssisted Investor Class
APIR CodeSLT0052AU
ISINAU60SLT00527
TradableDirectly with the Responsible Entity
mFundSMF02
Management Costs0.69% p.a.
Performance Fee (%)22.5% of excess fund performance over the Benchmark subject to a high water mark.
BenchmarkRBA cash rate plus 1.50% plus Management Costs
Minimum Investment$1,000
Additional Investment$1,000
Minimum Balance$1,000
Saving PlanMonthly
Savings Plan Minimum$100
Buy Spread0.000%
Sell Spread*0.025%

Frequently Asked Questions

To invest via the Securities Exchange – You can buy and sell units in SMHI through your online share trading platform, your stockbroker or your financial adviser using mFund. Please read the PDS, as certain functionality may be limited.
 
To invest via the responsible entity – You can apply online here. 

Complete a withdrawal request form and submit it to the responsible entity (RE). Further instructions are on the form.

If you have a Holder Identification Number (HIN) or invested through mFund, you will need to submit your instruction with the assistance of your stockbroker or online trading platform.

*The Buy Sell Spread may change depending on the transaction costs associated with buying and selling the assets within the Fund’s portfolio at that time. Any changes to the spreads after the date of the PDS will be published here.

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 Smarter Money Fund (SMF), the Smarter Money Higher Income Fund (SMHI), Smarter Money Long-Short Credit Fund (LSCF) and the Coolabah Active Composite Bond Fund (Hedge Fund) (Ticker: FIXD). 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.