NZ PIE Strategies
CCI offers New Zealand based investors access to the Australian and global fixed income market through a Short Term Income and Long-Short Strategy. These solutions target returns, after fees and before tax, between 1.5% to 3%, and 4% to 6% above the RBNZ cash rate.
Both 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.
Coolabah Short Term Income PIE Fund
Targets RBNZ Cash Plus 1.5% to 3.0% pa After Fees and Before Taxes
The Coolabah Short Term Income PIE Fund is a zero duration, short-term fixed-interest investment solution that targets returns that outperform the RBNZ cash rate by 1.5% – 3.0% per annum after all fees and before tax, over rolling 12 month periods.
This strategy gains exposure to an actively managed portfolio of Australian cash securities and investment-grade floating-rate notes with a target dollar-weighted average credit rating in the “A” band hedged to NZ dollars. It does not invest in fixed-rate bonds (unless interest rate risk is swapped out) or equities.
The portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds.
Coolabah Long-Short Credit PIE Fund
Targets RBNZ Cash Plus 4.0% to 6.0% pa After Fees and Before Taxes
The Coolabah Long-Short Credit PIE Fund provides investors with exposure to an absolute return fixed-income strategy focused on exploiting long and short mispricings in credit markets.
The strategy targets returns above the RBNZ cash rate plus 4% to 6% pa after all fees and before tax over rolling 3 year periods . It targets volatility of less than 5% pa.
This strategy offers investor exposure primarily to senior and subordinated bonds, hybrids and derivatives, hedged to NZ dollars. The Coolabah Long-Short Credit PIE Fund targets holding the majority of its portfolio in investment-grade quality debt securities.
The strategy aims to generate high absolute returns that have low-to-no correlation with equities, fixed-rate bonds and property markets, from relatively low risk and liquid investments identified through the portfolio managers’ proven active asset-selection process. The strategy aims to reliably distribute strong quarterly income.
The portfolio managers seek to generate these returns by taking “long” or “short” positions in relation to assets which they consider are trading below or above fair value. The goal is to generate significant risk-adjusted returns, or “alpha”. The ability to go long or short, either directly or through using derivatives, means it can profit from bond price rises and price falls. Going long or short can also result in the strategy being leveraged.
Key Facts
| Name | Coolabah Short Term Income PIE Fund | Coolabah Long-Short Credit PIE Fund |
|---|---|---|
| Scheme | Coolabah Investment Funds | Coolabah Investment Funds |
| Investment Objective | Targets returns of the RBNZ cash rate plus 1.5% to 3.0% pa after fees and before tax | Targets returns of the RBNZ cash rate plus 4.0% to 6.0% after fees and before tax |
| Inception Date | 9-Dec-2021 | 9-Dec-2021 |
| Inception Date Of Underlying Strategy | 8-Oct-2014 | 31-Aug-2017 |
| Applications | Daily | Daily |
| Withdrawals | Daily (T+4) | Daily (T+4) |
| Distribution Frequency | Quarterly | Quarterly |
| Distribution Method | Reinvestment or paid out | Reinvestment or paid out |
| Fund Host | FundRock NZ | FundRock NZ |
| Investment Manager | Coolabah Capital Investments (Retail) | Coolabah Capital Investments (Retail) |
| Supervisor | Public Trust | Public Trust |
| Fund Administrator | Adminis NZ | Adminis NZ |
| Custodian | Adminis NZ | Adminis NZ |
Pricing Information
| Name | Coolabah Short Term Income PIE Fund | Coolabah Long-Short Credit PIE Fund |
| Management Costs | 0.69% pa including GST | 1.00% pa including GST |
| Performance Fee (%) | 22.5% of the fund's gross excess performance over the Benchmark, subject to a high water mark | 20.5% of the fund's gross excess performance over the Benchmark, subject to a high water mark |
| Benchmark | Bloomberg AusBond Bank Bill Index (BAUBIL) hedged to NZD plus 1.89% pa | Bloomberg AusBond Bank Bill Index (BAUBIL) hedged to NZD plus 1.00% pa |
| Currency | NZD | NZD |
| Minimum Investment | $1,000 NZD | $1,000 NZD |
| Additional Investment | $1,000 NZD | $1,000 NZD |
| Minimum Balance | $1,000 NZD | $1,000 NZD |
| Buy Spread | 0.000% | 0.000% |
| Sell Spread* | 0.025% | 0.050% |
Contact Us
For any account or transaction related queries, please contact Implemented Investment Solutions.
FundRock NZ
- Phone: +64 4999 654
- Email: contact@iisolutions.co.nz
- Address: PO Box 25003, Wellington 6140, New Zealand
For all investment related enquiries, please contact our customer service department:
Coolabah Capital Investments
- Phone: +61 (0) 2 8315 3472
- Email: info@coolabahcapital.com
- Address: Level 3, 1 Bligh Street, Sydney, NSW Australia 2000
Frequently Asked Questions
Complete a withdrawal form and submit it to the Implemented Investment Solutions by emailing contact@iisolutions.co.nz or calling + 64 4 4999 654. Further instructions are on the form.
If you have invested through a financial adviser or platform, you will need to submit your instruction with their assistance.
*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 Implemented Investment Solutions or to the investment manager, see page 13 of the PDS for further details.
Disclaimer: Past performance is not indicative of future performance. Returns are shown after all fund fees, unless otherwise stated.
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 and the Coolabah Long-Short Credit PIE Fund. Coolabah Capital Investments (Retail) Pty Ltd ACN 153 555 867 is the Investment Manager.
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. Investors are encouraged to seek independent financial advice. 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, FundRock, Public Trust 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.
AUSTRALIA
SYDNEY
Level 3, 1 Bligh Street, Sydney NSW 2000
MELBOURNE
Level 38, South Tower, 80 Collins Street, Melbourne VIC 3000
UNITED KINGDOM
LONDON
Second Floor, 28 Austin Friars, London EC2N 2QQ
NEW ZEALAND
AUCKLAND
Level 17, 1 Albert Street
Auckland CBD, Auckland 1010