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 five portfolio managers and 13 analysts (with 4 PhDs) as at April 2021.

The Strategies

CCI offers a range of risk and return solutions tailored to the requirements of different investment preferences, including customised mandates for institutional investors.

Smarter Money Investments

Smarter Money Investments (SMI) is a wholly owned subsidiary of CCI and the channel through which it provides its own public offer strategies. These include: 

(1) the Smarter Money Fund (SMF), which targets liquid, zero-duration returns of 1.0% and 2.0% above the RBA cash rate after all fees with an average A rating (with no leverage); 

(2) the Smarter Money Higher Income (SMHI) Fund, which targets liquid, zero-duration returns of 1.5% and 3.0% above the RBA cash rate after all fees with an average A rating (with no leverage); and 

(3) the Smarter Money Long Short Credit Fund (LSCF), which targets liquid, zero-duration returns of 4.0% and 6.0% above the RBA cash rate after all fees with an average A rating.

SMARTER MONEY FUND (SMF)

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.

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.

SMARTER MONEY HIGHER INCOME FUND (SMHI)

The Smarter Money Higher Income (SMHI) Fund 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 1.5% 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.

SMARTER MONEY LONG-SHORT CREDIT FUND (LSCF)

The Smarter Money Long-Short Credit Fund (LSCF) harnesses CCI’s 26 person team (as at April 2021) 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. 

Since inception LSCF has outperformed the HFRI Credit Hedge Fund and the Bloomberg Credit Hedge Fund Indices net of fees, and ranks as the No.1 strategy in Mercer’s short duration credit universe over the last 1, 2 and 3 years as at October 2020.

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.

Coolabah Capital Investments

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 Strategy

Higher Income StrategyLong-Short Credit StrategyBetashares HBRD ETF
Strategy

Smarter Money

Fixed IncomeUnconstrained Fixed IncomeHybrid Securities
APIR CodeCRE0014AUSLT0052AUSLT2562AUASX: HBRD
Target Return (Net)RBA + 1%-2% p.a.RBA + 1.5%-3% p.a.RBA + 4%-6% p.a.RBA + 2.5% p.a.
Target Volatility< 1% p.a.< 2% p.a.< 5% p.a.3%-4% p.a.
Inception Date17-Feb-128-Oct-1431-Aug-1713-Nov-17
Responsible EntityEquity TrusteesEquity TrusteesEquity TrusteesBetaShares Capital
RegistryMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesLink Market Services
CustodianMainstream Fund ServicesMainstream Fund ServicesMainstream Fund ServicesRBC Investor Services
ApplicationsDailyDailyDailyDaily
WithdrawalsDaily (T+3)Daily (T+3)Daily (T+3)Daily (T+3)
DistributionsQuarterlyQuarterlyQuarterlyMonthly
Minimum Investment$1,000$1,000$1,000None
Additional Investment$1,000$1,000$1,000None
Savings PlanMonthlyMonthlyMonthlyN/A
Savings Plan Minimum$100$100$100N/A
Buy/Sell Spread*

0.00%/0.025%

0.00%/0.025%

0.00%/0.05%

On 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.