Alpha Generating strategies
Coolabah Capital Investments (CCI) offers a rich range of active credit alpha solutions for New Zealand investors. All utilise our unique intellectual edge furnished by one of the largest teams in investment-grade fixed-income, including 11 portfolio managers and traders and 12 analysts.
The Strategies
CCI offers New Zealand based investors access to the Australian and global fixed income market through the following strategies:
- the Coolabah Short Term Income PIE Fund, which targets liquid, zero-duration returns of 1.5% to 3.0% p.a. above the RBNZ cash rate after all fees with an average A credit rating (with no leverage);
- the Coolabah Floating-Rate High Yield PIE Fund, which provides exposure to a portfolio of investment-grade Australian floating-rate notes with enhanced yields;
- the Coolabah Long-Short Credit PIE Fund, which targets liquid, zero-duration returns of 4.0% to 6.0% p.a. above the RBNZ cash rate after all fees with an average A credit rating; and
- the Coolabah Active Composite Bond PIE Fund, which targets liquid, long-duration returns of 1.0% to 2.0% p.a. above AusBond Composite 0+Yr Index after all fees with an average A credit rating.
All strategies are 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.
Public Strategies
COOLABAH SHORT TERM INCOME PIE FUND
The Coolabah Short Term Income PIE Fund aims to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBNZ 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.
The Fund 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.
It cannot use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.
COOLABAH FLOATING-RATE HIGH YIELD PIE FUND
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.
It 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.
COOLABAH LONG-SHORT CREDIT PIE FUND
The Coolabah Long-Short Credit Fund aims to actively exploit mispricings in global cash and bond markets to generate daily liquidity returns that exceed a target of the RBNZ cash rate plus 4% to 6% pa after all fees with an average A credit rating and near-zero interest rate duration risk.
It 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.
It’s typically placed in the “unconstrained fixed-income”, “high yield”, or “defensive alternative” universes.
COOLABAH ACTIVE COMPOSITE BOND PIE FUND
The Coolabah Active Composite Bond PIE Fund is offers New Zealand based investors access to our market-leading, daily liquidity, long duration, active composite bond strategy.
The strategy seeks to deliver superior risk-adjusted returns to the Bloomberg AusBond Composite Bond Index through harnessing Coolabah’s active credit alpha style that focusses on systematically exploiting mispricings to generate capital gains in addition to yield.
Fund Comparison
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| Coolabah Short Term Income PIE Fund | Coolabah Floating-Rate High Yield PIE Fund | Coolabah Long-Short Credit PIE Fund | Coolabah Active Composite Bond PIE Fund | |
|---|---|---|---|---|
| Strategy | Short-Term Income | Floating-Rate High Yield | Long-Short Credit | Composite Bond |
| Domicile | New Zealand | New Zealand | New Zealand | New Zealand |
| Currency | NZD | NZD | NZD | NZD |
| Investment Objective | RBNZ + 1%-2% p.a. after fees | A portfolio of floating-rate notes with enhanced yields | RBNZ + 4%-6% p.a. after fees | AusBond Composite 0+ Yr Index + 1%-2% p.a. after fees |
| Inception Date | 9-Dec-21 | 6-Dec-23 | 9-Dec-21 | 6-Dec-23 |
| Underlying Fund | Coolabah Short Term Income Fund (Aus) | Coolabah Floating-Rate High Yield Fund (Aus) | Smarter Money Long-Short Credit Fund (Aus) | Coolabah Active Composite Bond Fund (Aus) |
| Underlying Fund Inception Date | 8-Oct-14 | 5-Dec-22 | 31-Aug-17 | 6-Mar-17 |
| Supervisor | Public Trust | Public Trust | Public Trust | Public Trust |
| Issuer | FundRock NZ | FundRock NZ | FundRock NZ | FundRock NZ |
| Registry | Adminis NZ | Apex Fund Services | Adminis NZ | Apex Fund Services |
| Custodian | Adminis NZ | BNP Paribas | Adminis NZ | BNP Paribas |
| Applications | Daily | Daily | Daily | Daily |
| Withdrawals | Daily (T+4) | Daily (T+4) | Daily (T+4) | Daily (T+4) |
| Distributions | Quarterly | Quarterly | Quarterly | Quarterly |
| Minimum Investment | $1,000 | $1,000 | $1,000 | $1,000 |
| Additional Investment | $1,000 | $1,000 | $1,000 | $1,000 |
| Buy/Sell Spread* | 0.00%/0.025% | 0.00%/0.05% | 0.00%/0.05% | 0.00%/0.025% |
| Gearing | No | Yes | Yes | Yes |
| Shorting | No | No | Yes | Yes |
Foreign Currency Strategies
Australian Strategies
Coolabah has a wide range of actively managed fixed income strategies for Australian based retail, wholesale and institutional investors. These include:
- the Smarter Money Fund, which targets liquid, zero-duration returns of 1.0% to 2.0% p.a. above the RBA cash rate after all fees with an average A credit rating (with no leverage);
- the Coolabah Short Term Income Fund, which targets liquid, zero-duration returns of 1.5% to 3.0% p.a. above the RBA cash rate after all fees with an average A credit rating (with no leverage);
- the Coolabah Floating-Rate High Yield Fund (Managed Fund), which provides exposure to a portfolio of investment-grade Australian floating-rate notes with enhanced yields;
- the Smarter Money Long Short Credit Fund, which targets liquid, zero-duration returns of 4.0% to 6.0% p.a. above the RBA cash rate after all fees with an average A credit rating;
- the Coolabah Long-Short Opportunities Fund, which targets liquid, zero-duration returns of 8.0% p.a. above the RBA cash rate after all fees with an average A credit rating;
- the Coolabah Active Composite Bond Fund (Hedge Fund), which targets liquid, long-duration returns of 1.0% to 2.0% p.a. above AusBond Composite 0+Yr Index after all fees with an average A credit rating;
- the Coolabah Active Sovereign Bond Fund, a liquid AAA rated government bond strategy which offers both zero-duration and long-duration exposure that targets returns of 3% to 5% p.a. above their Benchmarks; and
- two foreign currency strategies, including a US Dollar Short Term Income and Long-Short Credit strategies.
These strategies are available to institutional investors in a customisable mandate or fund format to suit any risk and return profile.
*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 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.
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.
Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975, is the responsible entity for the Smarter Money Fund (SMF), the Coolabah Short Term Income Fund (STIF), Smarter Money Long-Short Credit Fund (LSCF), Coolabah Long-Short Opportunities Fund (LSOP), the Coolabah Floating-Rate High Yield Fund (Managed Fund) (YLD), the Coolabah Active Composite Bond Fund (Hedge Fund) (Ticker: FIXD), and the Coolabah Active Sovereign Bond Fund (ASBF). 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.
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