Yarra Enhanced Income Fund
|Economists Are Idiots!|
|Six Rules for Investing in Hybrids|
About this Fund
|FUND MANAGER||Yarra Funds Management|
|ASSET CLASS||FIXED INTEREST|
|INVESTMENT STYLE||The Fund invests in a diversified portfolio of fixed income and hybrid (debt/equity) securities.|
|INVESTMENT PROFILE||The Fund seeks to earn higher returns than traditional cash management and fixed income investments (over the medium-to-long term).|
|BENCHMARK||RBA Cash Rate|
|FUND SIZE||RBA Cash Rate|
|NO. OF HOLDINGS||40-50|
Benefits of investing in the Yarra Enhanced Income Fund
A summary of the significant features and benefits of investing in the Fund is as follows:
Moderate to High
The Fund may be suitable to investors that have a medium term investment time frame (i.e. a recommended minimum term of 3 to 5 years), who seek returns that are in line with the objective of the Fund and who have a risk tolerance in line with the Funds summary risk level.
About the Fund
The Yarra Enhanced Income Fund seeks to deliver higher returns to investors than traditional cash management and fixed income investments.
The Fund offers investors access to typically 40 - 50 securities and can provide diversification to traditional asset classes.
Income distributions are paid quarterly and may be partially franked. Some securities held by the Fund may have tax-deferred features so that part of the distributions paid by the Fund may be tax-deferred.
The underlying investments are actively managed to achieve optimal risk/reward outcomes of the Fund.
On average, assets within the Fund have an Investment Grade Rating.
The approach is research-driven, utilising the comprehensive research process of Yarra Capital Management and taking into account the broad economic and market environment as well as specific investments details.
To earn higher returns than traditional cash management and fixed income investments (over the medium-to-long term) through exposure to a diversified portfolio of hybrid (debt/equity) and fixed income securities. The Fund is expected to produce less volatile returns than are inherent in equity markets, while offering modest capital growth and some franking credits.
How we invest your money
The Fund invests in a range of high yielding fixed income and hybrid securities through its investment in the Enhanced Income Pooled Fund. The assets which the Fund will be exposed to include:
The underlying assets are predominantly Australian, may be quoted or unquoted, issued by listed or unlisted issuers, denominated in Australian dollars or foreign currencies and acquired in the primary or secondary markets.
Derivatives may be used to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.