Applying its fusion of both bottom-up and top-down, value-based quantitative asset pricing analysis, macro research and qualitative due diligence, CCI offers Australian active cash and low-duration active credit portfolios that suit investors with different risk and return preferences, and bespoke institutional mandates with active credit overlays.
- The Smarter Money Active Cash (SMAC) strategy: an independently rated and recommended fund comprising Australian investment-grade cash and floating-rate note securities with an average “A” credit rating that was launched in February 2012. SMAC carries little-to-no interest rate duration risk and has outperformed peers and benchmarks while targeting low volatility returns over the RBA cash plus 1.0% to 2.0% per annum after all fund fees. It is classified as having an active cash or short-term fixed-interest strategy and listed on numerous platforms.
- The Smarter Money Higher Income (SMHI) strategy: a low duration active credit fund launched in September 2014 that focuses on Australian cash and floating-rate notes that are expected to outperform the RBA cash rate plus 1.5% to 3.0% per annum after fees while carrying little-to-no interest rate duration risk. SMHI has delivered strong risk-adjusted returns since inception and is available on several platforms.
- The Smarter Money Long Short Credit Fund (LSCF): an absolute return fixed-income strategy focused on exploiting long and short mispricings in credit markets. The LSCF targets returns above the “neutral” RBA cash rate plus 4% to 6% p.a. over rolling 3 year periods after fees with volatility of less than 5% p.a. that are uncorrelated with traditional fixed-income, equities and property. The LSCF can profit from price rises and falls through-the-cycle and applies the investment process proven in the SMAC and SMHI strategies since 2012.
- The Active Credit Overlay (ACO) for AusBond Composite Bond Index mandates: this fuses CCI’s consistent credit alpha generation capabilities with a beta-based exposure to Australian risk-free interest rate duration. Since 2012 the resultant product has outperformed the AusBond Composite Bond Index by 1.8% annually with a 96% correlation to the benchmark, a 2.0 times Information Ratio, and annual tracking error of only 0.9% pa.