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

Smarter Money Higher Income Fund (SMHI)

RBA Cash Plus 1.5% To 3.0% pa strategy

About

The Smarter Money Higher Income (SMHI) Fund harnesses CCI’s 25 person team (as at October 2020) 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 October 2020. Past performance does not assure future returns and investors should read the PDS to better understand this strategy’s risks.

Ratings

SMHI is listed on numerous investment platforms. It is also rated by many researchers, including Mercer, Lonsec, Atchison and Australia Ratings. The strategy has daily redemption rights.

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. SMF does not invest in fixed-rate bonds (unless interest rate risk is hedged out) or equities. SMF 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

SMHI 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 SMHI’s risks better, please refer to the PDS.

Performance

Overview

Strategy: RBA cash plus 1.5 to 3.0% pa (short duration fixed-interest or cash-enhanced)
APIR: SLT0052AU
ARSN: 601 093 845
mFund: SMF02

Inception Date: 14 Aug 2014
Target Returns: 1.5% to 3.0% over RBA cash rate net of fees

Responsible Entity: Equity Trustees
Registry: Mainstream Fund Services
Custodian: Mainstream Fund Services

Applications: Daily
Withdrawals: Daily (T+3)
Distributions: Quarterly
Minimum Investment: $1,000
Additional Investment: $1,000
Savings Plan: Monthly
Savings Plan Minimum: $100
Buy/Sell Spread:* 0.00%/0.025%

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Ratings

Quantitative

Qualitative

Smarter Money Fund: Superior | Australia Ratings
Smarter Money Fund: Superior | Atchison Consultants

*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.

Smarter Money Higher Income Fund

Cash Plus 1.5% To 3.0% pa strategy

The Smarter Money Higher Income strategy (SMHI) is a zero duration, short-term fixed-interest investment solution that targets returns that outperform the Reserve Bank of Australia’s cash rate by 1.5% – 3.0% per annum after all fees, over rolling 12 month periods. SMHI primarily invests in a portfolio of Australian deposits and investment-grade bonds (mainly issued by banks) issued by banks and companies. It is a cash plus 1.5% to 3.0% p.a. strategy with a slightly higher return target than the Smarter Money Fund. SMHI offers daily redemption rights.

SMHI has been independently reviewed and rated by several research houses, including FE Analytics, Mercer, Lonsec, Atchison Consultants and Australia Ratings. Please contact us to obtain copies of the available ratings reports. These ratings are only one factor to be taken into account when deciding whether to invest.

SMHI actively invests in a portfolio of Australian cash securities and investment-grade floating-rate notes 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 swapped out) or equities. SMHI’s portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds.

SMHI 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 SMHI’s risks better, please refer to the PDS.

Performance

Overview

Strategy: Cash Plus 1.5 to 3.0% pa
APIR: SLT0052AU
ARSN: 601 093 845
mFund: SMF02

Inception Date: 14 Aug 2014
Target Returns: 1.5% to 3.0% over RBA Cash Rate net of fees

Responsible Entity: Equity Trustees
Registry: Mainstream Fund Services
Custodian: Mainstream Fund Services

Applications: Daily
Withdrawals: Daily (T+3)
Distributions: Quarterly
Minimum Investment: $1,000
Additional Investment: $1,000
Savings Plan: Monthly
Savings Plan Minimum: $100
Buy/Sell Spread:* 0.00%/0.025%

Download Centre

Ratings

Quantitative

Qualitative

Smarter Money Fund: Superior | Australia Ratings
Smarter Money Fund: Superior | Atchison Consultants

*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.