Benefits of investing in the Yarra Australian Bond Fund

Benefits of investing in the Fund include:

• exposure to investment grade fixed interest securities which provide income

• the potential to reduce risk through an actively managed diversified fixed interest portfolio

• access to an established team with significant experience in managing fixed income and credit portfolios

• YCML's multi-strategy approach designed to take advantage of opportunities in fixed interest and credit markets

• access to investment opportunities, markets and diversification that individual investors may not be able to achieve on their own

• the option to make regular investments with a Regular Savings Plan

• regular investment statements and an annual tax statement to keep you up-to-date on your investment

• a customer service team to assist with your queries about the Fund and your investment

• online access to up-to-date information about your investment.

Risk level

Low to Medium

Investor suitability

The Fund is designed for investors looking for income returns from a diversified portfolio of fixed interest securities which is actively managed to take advantage of interest rate movements and the market's pricing of liquidity and credit risk. the conservative risk profile of the Fund is also designed to provide defensive qualities within an investor's overall portfolio.

About the Fund

The Fund invests in a diversified portfolio of investment grade Australian fixed income assets, that aims to deliver an active return for a passive fee.

The Fund aims to outperform the Bloomberg AusBond Composite 0 + YR Index over any three-year rolling period, before fees, expenses and taxes.

Fund characteristics

• Active, opportunistic & disciplined investment style

• Diversified across all Australian fixed income sectors

• Only invests in securities rated BBB- and above

• Top-down' value-adding process merged with bottom-up' quantitative portfolio construction and credit process

• Typically invests in 70-130 securities

• Modified duration of +/- 1.5 years

How we invest your money

The Fund is a managed investment scheme that invests in a range of predominantly investment grade Australian fixed interest securities, and cash and short-term securities. the Fund may also invest in international fixed interest securities up to 5% of the value of the Fund. Currency and international interest rate risk are hedged back to Australian dollars and Australian interest rate risk, respectively.

YCML uses multiple strategies such as duration, yield curve positioning, sector rotation and credit management to take advantage of opportunities in the Australian fixed interest market and international credit markets in all conditions.

Derivatives may be used to gain or reduce market exposures, however the Fund's investment strategy does not permit derivatives to be used for speculative or gearing purposes.

Strategic asset allocation

(Asset class: Target range / Target allocation)

• Australian fixed interest: 0-100% / 100%

• International fixed interest (hedged): 0-5% / 0%