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MCTDF - Class A Units

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101100-2023-01-12-02:34.pdf
FUND MANAGER Mutual Limited
ASX Code
APIR PRM0010AU
ASSET CLASS FIXED INTEREST
INVESTMENT STYLE The Fund offers investors access to a portfolio of the best term deposits offered by the major Australian banks with small cash holdings to provide Fund liquidity.
INVESTMENT PROFILE The Fund seeks to outperform the Benchmark and other similar cash management trusts.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 07-09-2011
BENCHMARK Bloomberg AusBond Bank Bill Index
FUND SIZE Bloomberg AusBond Bank Bill Index
DISTRIBUTION FREQUENCY Quarterly
NO. OF HOLDINGS
FEES 0.25% p.a. (inclusive of GST) of the gross asset value relating to Class A Units of the Fund
STRUCTURE

Benefits

Benefits

Benefits of investing in the MCTDF

The benefits of investing in the Fund include:

  • Security: The Fund only invests in authorised investments.
  • Diversification: The Fund will invest in a diversified range of issuers and maturities.
  • Income: Income is accrued on a daily basis, paid quarterly, and distributed within 5 days of quarter end (September, December, March and June) either by reinvestment in additional units or payment in cash.
  • Access and liquidity: Redemptions are usually paid within 5 days.
  • Income reinvestment: Income can be reinvested automatically.

Risk level

Low

Investor suitability

The Fund is suitable for investors seeking an investment that has the following features:

  • underlying assets consisting of deposits with ANZ, CBA, NAB and Westpac;
  • regular income distributions;
  • liquidity;
  • a distribution reinvestment option; and • capital stability.
RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

MCTDF offers investors access to a portfolio of the best term deposits offered by the major Australian banks with small cash holdings to provide Fund liquidity.

The Fund capitalises on the increasing competition and changed market dynamics for term deposit business for (and as between) Australia's major banks.

Mutual's performance benchmark is to outperform the Bloomberg AusBond Bank Bill Index and returns from other cash management trusts.

About Mutual Limited

Mutual is an Australian, independently owned investment management company specialising in operations covering short-term securities, fixed interest, credit and ASX listed securities.

Mutual currently manages in excess of AUD$2.8 billion. (As at date of PDS.)

Mandate

How we invest your money

Mutual's objective is to source and actively manage a portfolio of the best term deposits offered by the major Australian banks with small cash and NCD holdings to provide Fund liquidity.

Cash and deposits are generally considered as low risk when compared with other asset classes.

The Fund constitution allows the following authorised investments:

(Authorised investments: Min - Max / Target)

  • Cash: 0-100% / 0-20%
  • Term deposits: 0-100% / 0-80%
  • NCDs: 0-100% / 0-20%

The current range and target allocations may change at the RE's discretion. Fund investments comprise a diversified mix (by issuer and duration) of term deposits with the following banks:

  1. ANZ
  2. CBA
  3. NAB
  4. Westpac

For each of the above, counterparty exposure guideline is a maximum of 40% of the Fund assets. The Fund may also invest in at-call deposits (cash) and NCDs to provide liquidity.

The Fund invests in term deposits with a range of maturities to a maximum of 370 days. The Fund may hold cash and NCDs which in normal market conditions will comprise less than 20% of the Fund.