| Fund: Coolabah Global Floating-Rate High Yield Complex ETF |
| Strategy: Global Floating-Rate High Yield |
| Return (since Feb. 2025): 7.65% pa gross (6.48% pa net) |
| Net return volatility (since Feb. 2025): 1.50% pa |
Objective: The investment objective of the Fund is to provide investors with exposure to a global floating-rate portfolio of investment-grade bonds and hybrid securities with enhanced yields.
Strategy: The Fund aims to generate higher income than other traditional fixed income investments by investing in a floating-rate portfolio of investment-grade bonds and hybrid securities issued predominately by global banks and enhancing the yields (or interest-rate) through the use of gearing (or leverage). It also has the capacity to invest in government bonds, corporate bonds and hybrid securities. The Fund aims to offer a floating-rate profile by targeting an interest rate duration risk of less than 3 months. The Fund can borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses. The Fund does not invest in equities, unrated unlisted debt securities or property.
| Period Ending 2026-06-30 | Gross Return | Net Return | Bloomberg AusBond Credit FRN 0+ Yr Index | Gross Excess Return‡ | Net Excess Return‡ |
|---|---|---|---|---|---|
| 1 month | 0.80% | 0.71% | 0.46% | 0.35% | 0.25% |
| 3 months | 2.59% | 2.31% | 1.40% | 1.19% | 0.91% |
| 6 months | 3.57% | 3.01% | 2.44% | 1.12% | 0.56% |
| 1 year | 8.13% | 6.95% | 4.88% | 3.25% | 2.07% |
| Inception pa Feb. 2025 | 7.65% | 6.48% | 4.88% | 2.78% | 1.61% |
‡ The Excess Return column represents the gross and net return above the Bloomberg AusBond FRN 0+ Yr Index
* The yield displayed for the Fund is the annual running yield before fees. A fund’s running yield is a forward-looking measure of the income expected to be generated by the portfolio based on the coupons payable on the bonds held by the fund as at that date, before management fees, performance fees and fund expenses. The yield can change daily depending on factors, such as the fund's investment activity and market movements, and may be different on the day you invest. 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. The Fund has a different risk profile to the other comparisons, including, amongst other things, that it uses leverage, which means that both gains and losses may be amplified. To understand the Fund’s risks better, please refer to the Product Disclosure Statement.
Portfolio commentary: In June, the zero-duration daily liquidity Coolabah Global Floating-Rate High Yield Fund (YLDX) returned 0.80% gross (0.71% net), outperforming the RBA Overnight Cash Rate (0.37%), the AusBond Bank Bill Index (0.39%), and the AusBond Credit FRN Index (0.46%). Over the previous 12 months, YLDX returned 8.13% gross (6.95% net), outperforming the RBA Overnight Cash Rate (3.84%), the AusBond Bank Bill Index (3.86%), and the AusBond Credit FRN Index (4.88%). YLDX ended June with a running yield of 6.67% pa, a weighted-average credit rating of A+, and a portfolio weighted average MSCI ESG rating of AA.
Since the inception of YLDX in February 2025, it has returned 7.65% pa gross (6.48% pa net), outperforming the RBA Overnight Cash Rate (3.89% pa), the AusBond Bank Bill Index (3.94% pa), and the AusBond Credit FRN Index (4.88% pa). Since inception, YLDX's Sharpe Ratio, which measures risk-adjusted returns, has been 2.50x gross (1.73x net). While YLDX's return volatility since inception has been low at around 1.50% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.