Benefits of investing in the Bentham High Yield Fund

• Global investments: Access to a diversified global high yield credit portfolio that individual investors usually cannot achieve on their own.

• Specialised credit investment professionals: The Fund is managed by a global team of investment professionals who specialise in global credit.

• Significant track record: The Fund has a track record of over 20 years and has been managed through a number of business cycles.

• Income: The Fund aims to provide reliable, consistent quarterly income.

• Lower volatility: High yield markets have historically delivered lower volatility than equities.

Risk level

Medium to High

Investor suitability

The Fund is intended to be suitable for investors seeking to invest for at least three years, with a preference for stable income and capital stability.

About the Fund

The Bentham High Yield Fund is actively managed and focused on generating higher income than traditional fixed income investments. The Fund provides diversified exposure to the US high yield bond market with active allocation between individual securities and industries.

High yield bonds are managed on the belief that returns above benchmark are driven by a strong credit culture and a systematic investment process. Security selection is based on relative value within the capital structure of comparable companies and industries. The preservation of principal and protection against downside risk plays an important role in the investment process. The Fund has a high level of industry and issuer diversification.

Fund Features

• Access to a diversified high yield credit portfolio

• Quarterly income distributions

• Open Fund with daily unit pricing

• Australian domiciled trust with more than 20 year's track record - one of Australia's longest-running high yield funds

• Investments not generally available to direct retail investors

• Access to a global investment universe.

How we invest your money

The Fund consists primarily of US high yield bonds with limited exposure to other credit investments including syndicated loans, credit default swaps and collateralised debt obligations. Bentham seeks to add value through active allocations between individual securities and industries, while maintaining a highly diversified portfolio. The Fund uses bottom-up analysis to select individual investments and employs a conservative approach to credit selection. Security selection is based on relative value within the capital structure of comparable companies and industries. The preservation of principal and protection against downside risk plays an important role in the investment process.

Investment universe and portfolio construction

The Fund typically has exposure to high yield bonds but may have limited exposure to other credit investments including syndicated loans, credit default swaps, collateralised debt obligations, repurchase agreements and reverse repurchase agreements. As part of the acquisition of corporate debt securities, the Fund may also gain exposure to equity securities.

Bentham may also use derivatives as a risk management tool, which include but are not limited to currency swaps, interest rate swaps, and credit default swaps. The final portfolio reflects a rigorous fundamental approach to credit portfolio management. Portfolio construction guidelines promote diversification by limiting the maximum portfolio exposure and the minimum number of issuer exposures.

Strategic asset allocation ranges

• Debt securities: 0-100%

• Equity securities: 0-5%

• Cash: 0-100%