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 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 BetaShares Active Australian Hybrids Fund (ASX: HBRD): this is the first hybrids “active ETF” in Australia and provides access to a diversified portfolio of bonds and hybrid securities. HBRD aims to outperform the wider Australian hybrids market, which it has achieved since its inception. HBRD also seeks to reduce the volatility and downside risk that may otherwise be experienced by direct holders of hybrids.
- 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.