SMARTER MONEY Strategy

Targets daily liquidity returns in excess of the RBA cash rate plus 1% to 2% pa net of fees with near-zero interest rate duration risk and an average A rating

SMARTER MONEY FUND (SMF)

RBA CASH PLUS 1.0% TO 2.0% PA STRATEGY

About

The Smarter Money Fund (SMF) harnesses CCI’s 26 person team (as at April 2021) to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.0% to 2.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk.

The SMF is a daily liquidity solution that invests in cash and investment-grade 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.

SMF cannot invest in hybrids or use leverage. It is typically placed in the “short duration fixed-interest” (credit) or “cash-enhanced” universes.

Since its inception in February 2012, SMF has delivered post-fee returns that exceed the RBA cash rate plus 1% after all fees with low volatility of less than 1% per annum. Past performance does not assure future returns and investors should read the PDS to better understand this strategy’s risks.

Ratings

SMF 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

SMF actively invests in a portfolio of Australian cash securities and investment-grade 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), hybrids or equities. SMF is not permitted to use leverage. 

Applying a diverse array of quantitative asset pricing techniques, SMF’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

SMF 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 SMF’s risks better, please refer to the detailed “Risks” section in the PDS.

Performance

Overview

Strategy: RBA cash plus 1.0% to 2.0% pa (short duration fixed-interest or cash-enhanced)
APIR: CRE0014AU
ARSN: 154 023 408
mFund: SMF01

Inception Date: 17 Feb 2012
Target Returns: 1.0% to 2.0% 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

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 FUND

CASH PLUS 1.0% TO 2.0% PA STRATEGY​

The Smarter Money Fund (SMF) is an independently rated “cash plus 1.0% to 2.0% pa” strategy targeting zero duration cash and fixed-income returns that exceed the RBA’s cash rate by 1%-2% pa after fees, over rolling 12 month periods. SMF actively invests in a portfolio of Australian bank deposits and investment grade floating-rate notes with a dollar weighted average “A” credit rating. SMF does not invest in fixed-rate bonds (unless interest rate risk is swapped out), sub-investment grade bonds, debentures, AT1 hybrids, or equities. SMF’s portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds. SMF offers daily redemption rights.

SMF has been independently reviewed and rated by several research houses, including FE Analytics, Lonsec, Mercer, 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.

SMF 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. SMF does not invest in fixed-rate bonds (unless interest rate risk is swapped out) or equities. SMF’s portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds.

SMF 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 SMF’s risks better, please refer to the detailed “Risks” section in the PDS.

Performance

Overview

Strategy: Cash Plus 1.0% to 2.0% pa
APIR: CRE0014AU
ARSN: 154 023 408
mFund: SMF01

Inception Date: 17 Feb 2012
Target Returns: 1.0% to 2.0% 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

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.