Alpha Generating strategies

Coolabah Capital Investments (CCI) offers a rich range of active credit alpha solutions under the Smarter Money Investments (SMI), BetaShares and CCI umbrellas. All utilise our unique intellectual edge furnished by one of the largest teams in investment-grade fixed-income, including eight portfolio managers and fifteen analysts as at December 2021.

The Strategies

Coolabah a wide range of actively managed fixed income strategies for retail, wholesale and institutional investors.

Publicly available strategies are through Coolabah’s wholly owned subsidiary Coolabah Capital Investments (Retail), previously known as retail fund manager, Smarter Money Investments (SMI). These include: 

  1. the Smarter Money Fund (SMF), 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); 
  2. the Smarter Money Higher Income Fund (SMHI), 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);
  3. the Smarter Money Long Short Credit Fund (LSCF), 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;
  4. the Coolabah Long-Short Opportunities Fund (LSOP), 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;
  5. the Coolabah Active Composite Bond Fund (Hedge Fund) (FIXD), 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; and
  6. multiple foreign currency strategies, including two US Dollar and NZ Dollar Higher 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.

Public Strategies

SMARTER MONEY FUND (SMF)

The Smarter Money Fund (SMF) harnesses CCI’s management team of over 30 executives 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.

SMF is listed on numerous investment platforms. It is also rated by many researchers, including Mercer, Lonsec, Atchison and Foresight Analytics. The strategy has daily redemption rights.

RBA Cash Plus 1.0% to 2.0% p.a. Strategy

SMARTER MONEY HIGHER INCOME FUND (SMHI)

The Smarter Money Higher Income (SMHI) Fund harnesses CCI’s management team of over 30 executives to actively exploit mispricings in cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 1.5% to 3.0% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

SMHI 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. 

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

Since its inception in October 2014, SMHI has delivered post-fee returns that exceed the RBA cash rate plus 1.5% after all fees with low volatility of less than 1.5% per annum. It ranks No1 in FE fundinfo’s Cash Enhanced universe over the last 5 years as at October 2020. Past performance does not assure future returns and investors should read the PDS to better understand this strategy’s risks.

SMHI is listed on numerous investment platforms. It is also rated by many researchers, including Mercer, Lonsec, Atchison and Foresight Analytics. The strategy has daily redemption rights.

RBA Cash Plus 1.5% to 3.0% p.a. Strategy

SMARTER MONEY LONG-SHORT CREDIT FUND (LSCF)

The Smarter Money Long-Short Credit Fund (LSCF) harnesses CCI’s management team of over 30 executives to actively exploit mispricings in global cash and bond markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 4% to 6% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

LSCF 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. 

LSCF is typically placed in the “unconstrained fixed-income”, “high yield”, or “defensive alternative” universes.

LSCF is listed on numerous investment platforms. It is also rated by many researchers, including Lonsec, Atchison and Foresight Analytics. The strategy has daily redemption rights.

RBA CASH PLUS 4.0% TO 6.0% P.A. Strategy

COOLABAH LONG-SHORT OPPORTUNITIES FUND

The Coolabah Long-Short Opportunities Fund (LSOP) harnesses CCI’s management team of over 30 executives to actively exploit mispricings in global cash, bond and bank equity markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 8% pa after all fees with an average A credit rating and near-zero interest rate duration risk. 

LSOP is a daily liquidity solution that invests in cash, fixed-income securities and listed equity providing investors with exposure to the full capital structure of Australian and overseas banking groups. All fixed-rate assets are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk. 

RBA CASH PLUS + 8.0% P.A. Strategy

COOLABAH ACTIVE COMPOSITE BOND FUND (HEDGE FUND)

The Coolabah Active Composite Bond Fund (Hedge Fund) is our market-leading, daily liquidity, long duration, active composite bond strategy. This was previously an institutional strategy for super funds that was not available to the public, which we are now excited to bring to you as an exchange quoted managed fund on Chi-X Australia under the ticker FIXD. The Fund can also be accessed by applying directly with the Fund Administrator, Mainstream Fund Services, under the APIR Code ETL2716AU.

The Coolabah Active Composite Bond Fund (Hedge Fund) 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.

AUSBOND COMPOSITE BOND INDEX + 1.0% TO 2.0% P.A. Strategy

Foreign Currency Strategies

USD Strategies

CCI offers Australian based investors with US dollars access to the Australian fixed income market through a Smarter Money and Long-Short Strategy. These solutions target returns between 1.5% to 3%, and 4% to 6% above the US Federal Funds Target Range.

US Federal Funds Rate Strategies

New Zealand 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 between 1.5% and 3%, and 4% and 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.

RBNZ Cash Strategies

Institutional Strategies

Coolabah Capital Institutional Investments (CCII) manages a wide range of customised, active credit alpha strategies exclusively for wholesale and institutional investors in mandate or fund format.

CUSTOM INSTITUTIONAL MANDATES

CCI specialises in building bespoke direct portfolios of investment grade and/or sub-investment grade credit alpha strategies with risk and return preferences tailored to client needs, including long and long-short strategies that are unlevered or levered.

BETASHARES ACTIVE AUSTRALIAN HYBRIDS FUND

HBRD is the first “active” fixed-income ETF in Australia that provides access to a diversified portfolio of cash, bonds and hybrid securities. HBRD aims to outperform the RBA cash rate plus 2.5% pa, which it has done since inception, while seeking to reduce the volatility and downside risk that may otherwise be experienced by direct holders of hybrids.

Fund Comparison

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Smarter Money StrategyHigher Income StrategyLong-Short Credit StrategyLong-Short Opportunities StrategyBetashares HBRD ETFCoolabah Active Composite Bond Fund (Hedge Fund)
StrategyShort-Term IncomeShort-Term IncomeUnconstrained Fixed IncomeUnconstrained Fixed IncomeHybrid SecuritiesComposite Bond
APIR CodeCRE0014AUSLT0052AUSLT2562AUETL6881AUASX: HBRDCXA: FIXD
Target Return (Net)RBA + 1%-2% p.a.RBA + 1.5%-3% p.a.RBA + 4%-6% p.a.RBA + 8% p.a.RBA + 2.5% p.a.AusBond Composite 0+Yr Index + 1%-2% p.a.
Target Volatility< 1% p.a.< 2% p.a.< 5% p.a.< All Ords Index3%-4% p.a.None
Inception Date17-Feb-128-Oct-1431-Aug-1701-May-2013-Nov-1707-Mar-17
Responsible EntityEquity TrusteesEquity TrusteesEquity TrusteesEquity TrusteesBetaShares CapitalEquity Trustees
RegistryMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesLink Market ServicesMainstream Fund Services
CustodianMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesRBC Investor ServicesMainstream Fund Services
ApplicationsDailyDailyDailyDailyDailyDaily
WithdrawalsDaily (T+3)Daily (T+3)Daily (T+3)Daily (T+3)Daily (T+2)Daily (T+2)
DistributionsQuarterlyQuarterlyQuarterlyQuarterlyMonthlyQuarterly
Minimum Investment$1,000$1,000$1,000$1,000NoneNone
Additional Investment$1,000$1,000$1,000$1,000NoneNone
Savings PlanMonthlyMonthlyMonthlyN/AN/AN/A
Savings Plan Minimum$100$100$100N/AN/AN/A
Buy/Sell Spread*

0.00%/0.025%

0.00%/0.025%

0.00%/0.05%

0.00%/0.05%

On MarketOn Market

*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 on the Funds’ individual page.

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