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Zenith Awards Coolabah’s ACTIVE COMPOSITE BOND FUND a ‘Recommended’ Rating

This week Zenith Investment Partners awarded the Coolabah Active Composite Bond Fund (Hedge Fund) (CXA:FIXD) a RECOMMENDED investment rating. 

The Smarter Money Fund (Base Fee), Smarter Money Higher Income Fund (Base Fee) and Smarter Money Long-Short Credit Fund (Institutional) also retained their ‘Recommended’ ratings.

Zenith comments that:

“the Fund is an intuitive, capital efficient solution, delivering excess returns from the firm’s active trading approach.”

Further insights from Zenith included:

“the Fund is expected to deliver attractive results in highly volatile markets or where there is performance dispersion within and across sectors”.

“the approach to portfolio construction is highly intuitive, effectively representing a portable alpha strategy. By gaining access to the duration component of the benchmark in a capital efficient manner, it is able to actively trade the corporate and sovereign segments of the universe.”

About the Coolabah Active Composite Bond Fund (Hedge Fund)

  • The Coolabah Active Composite Bond Fund (Hedge Fund) offers exposure to an active fixed-income strategy focused on mispricing in government and corporate bond markets with the aim of delivering superior risk-adjusted returns.
  • The Fund keeps interest rate duration exposure fixed to the Bloomberg AusBond Composite 0+ Yr Index and targets returns of 1% to 2% annually over the benchmark, after management fees.
  • As of 31 May 2024, the Fund had outperformed the benchmark over all time periods since inception including by 4.8% net of fees over the last 12 months.
  • The Fund provides exposure to a diversified portfolio of cash securities and bonds, including government bonds, bank bonds and corporate bonds with an average target credit rating of A.
  • As of 31 May 2024, the Fund had a gross running yield of 6.6% p.a. and an average portfolio credit rating of A+.
  • The Fund can borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses. Please read the PDS for risks.
  • The Fund carries Coolabah’s lowest management fees of 0.30% per annum and has daily redemption rights.

Please contact us for a copy of the report. 

Ratings & Research Disclaimers

Zenith Investment Partners Disclaimer: The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned ETL2716AU & FIXD June 2024) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

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