Smarter Money Investments
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OVERVIEW OF THE SMARTER MONEY LONG-SHORT CREDIT FUND
The Smarter Money Long-Short Credit Fund is an absolute return fixed-income strategy focused on exploiting long and short mispricings in credit markets.
The Fund targets returns above the “neutral” Reserve Bank of Australia (RBA) cash rate plus 4% to 6% p.a. over rolling 3 year periods after Management Fees, Administration Fees and Performance Fees. The Fund targets volatility of less than 5% p.a.
The Fund invests primarily in senior and subordinated debt securities, hybrids and derivatives issued by Australian entities domestically and overseas, although it can also invest in these types of securities when they are issued by overseas entities (into the Australian market or offshore). The Fund targets holding the majority of its portfolio in investment-grade quality debt securities and hybrids.
The Fund aims to generate high absolute returns that have low to no correlation with equities, fixed-rate bonds and property markets, from relatively low risk and liquid investments identified through the Portfolio Manager’s active asset-selection process that has been proven over the last 6 years via the SMAC and SMHI strategies. The Fund aims to reliably distribute strong quarterly income.
The Portfolio Manager seeks to generate these returns by taking a “long” or “short” position in relation to assets which it considers are trading below or above fair value. The goal is to generate significant risk-adjusted returns, or “alpha”. The ability to go long or short, either directly or through using derivatives, means the Fund can profit from price rises and price falls. Going long or short can also result in the Fund being leveraged.
1. Select Asset Management Limited AFSL 223271 ABN 94 101 103 011 (the “Responsible Entity”) is the responsible entity of the Smarter Money Active Cash Fund and is the issuer of the Smarter Money Active Cash Fund Product Disclosure Statement (PDS) and the Smarter Money Higher Income Fund Product Disclosure Statement (PDS). The Responsible Entity has appointed Smarter Money Funds Management Pty Limited ACN 153 555 867 authorised representative number 414337 (“YBR Funds Management”), as investment manager of the Smarter Money Active Cash Fund. Smarter Money Investments is an authorised representative of Yellow Brick Road Investment Services Pty Limited ABN 86 003 990 627 AFSL 255016.
2. Yellow Brick Road Holdings Limited ACN 119 436 083, a company listed on the Australian Securities Exchange (ASX Code: YBR), is a shareholder in Smarter Money Investments.
The information on this web page has been prepared by Smarter Money Investments. It is general information only and is not intended to provide you with financial advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The Product Disclosure Statement (PDS) issued on 29 August 2014 for the Smarter Money Active Cash Fund and the Product Disclosure Statement (PDS) issued on 8 October 2014 for the Smarter Money Higher Income Fund should be considered before deciding whether to acquire or hold units in either Fund. The PDSs can be obtained by calling 1800 927 927 or visiting http://smitrust.com.au/. None of the Responsible Entity, Smarter Money Investments, Yellow Brick Road Holdings Limited nor any of their respective shareholders, directors and associated businesses assume any liability to investors in connection with investment in the Smarter Money Active Cash Fund or the Smarter Money Higher Income Fund, or guarantees the performance of any obligations to investors, the performance of the Smarter Money Active Cash Fund or Smarter Money Higher Income Fund or any particular rate of return. The repayment of capital is not guaranteed. Investments in the Smarter Money Active Cash Fund or the Smarter Money Higher Income Fund are not deposits or liabilities of any of the above mentioned parties. The Smarter Money Active Cash Fund and the Smarter Money Higher Income Fund are subject to investment risks, which could include delays in repayment and loss of income and capital invested. To learn more about these risks, we strongly encourage you to read the Smarter Money Active Cash Fund PDS and the Smarter Money Higher Income PDS and consult an independent financial advisor.
Morningstar Rating Definition:
The Morningstar Rating is an assessment of a fund’s past performance — based on both return and risk — which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.
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The Lonsec Rating (assigned 04/2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Smarter Money Investments, and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings