PM Capital Enhanced Yield Fund - Class B

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101596-2022-09-22-02:40.pdf
ASX Code
INVESTMENT STYLE Fundamental, bottom-up, research-intensive approach.
INVESTMENT PROFILE The Fund seeks to provide a return in excess of the Benchmark with a low degree of volatility and minimal risk of capital loss.
FEES 0.79% p.a.



Benefits of investing in the PM Capital Enhanced Yield Fund

  • Steady income: Attractive levels of income to fund your lifestyle regardless of your age group.
  • Capital stability: Investors in the Fund over the recommended minimum time (2 plus years) have received attractive returns in excess of cash since inception (and were provided 100% liquidity) with a low degree of volatility - despite events such as the Global Financial Crisis and the European Debt Crisis.
  • Experience: Access to a portfolio of stand-out investments chosen by an experienced team backed by an established philosophy and process.
  • Purpose built: The Fund is built security by security, handpicked by the PM Capital team. The potential for returns may be significantly different to those provided by more traditional global income funds.
  • No currency risk: There is no material currency exposure in the Fund - as far as practicable foreign currency exposures are converted back to Australian Dollars.

Risk level

Low to Medium

Investor suitability

The Fund may be appropriate for investors seeking capital preservation and potential return in excess of the Reserve Bank of Australia's cash rate with a low degree of volatility.


Capital Growth, Satellite/small allocation (<25%) 



Key Features

Fund overview

The Enhanced Yield Fund aims to create long term wealth through identifying and profiting from market anomalies predominately in corporate bond, hybrid security, and other compelling debt market opportunities around  the world. Originally developed to invest the portion of PM Capital's own money which would otherwise sit in cash, the Fund was opened to co-investors as we realised our problem - how to produce regular income and attractive returns with low volatility - was shared by many other investors, and our solution may be able to help them achieve their own goals.

Investment philosophy

We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world. Using a focused, patient and considered approach to finding simple investment ideas produces the best environment for creating that long term wealth.

Our experience has shown us that while the market is largely efficient, it can, and regularly does, misprice a small proportion of companies. This mispricing can arise as a result of any number of reasons, but is most often associated with disruptive or cyclical change, new information which is misunderstood by the market as having a permanent impact when it is in fact transitory, or just because they are operating in a sector out of favour with investors.

Our unique process is based on scanning the world for those companies (hence the radar in our logo), discovering the associated valuation anomalies and extracting value from them. We buy good businesses at a good price; businesses that we believe are being valued differently to their long term intrinsic value, but will return to their correct value over time.

Why invest?

Dependable: A minimum 20% cash position helps the Fund preserve capital and achieve its return objectives with low volatility. The Fund's process is effective and repeatable, based on a proven philosophy developed over 15 years. This has produced  attractive returns for co-investors.

Careful: We have an authentic investment process where our exposure to industry sectors, geographic regions or market capitalisation is determined solely by our conviction in individual  risk/ reward opportunities that we identify. No conviction = no investment.

Co-investment: Our co-investors receive access to a unique subset of opportunities to which they would otherwise find difficult to access. The management team have significant investments in the Fund - they invest for and with you.

About PM Capital

PM Capital Limited, founded in 1998, is a globally-focussed fund manager that invests money on behalf of private clients, the clients of financial advisers and institutions. PM Capital's goal is to build long term wealth by investing in global markets with patience and conviction.


How we invest your money

Fund investments

To invest in a combination of cash, yield securities and to a much lesser extent (less than 5% net asset allocation) equity strategies. The Fund invests the majority of its Assets in cash and interest-bearing securities.

Net asset allocation range (including derivatives)

  • Cash: 20-100%
  • Yield securities (Ex-cash): 0-80%
  • Other (MIS, unlisted investments): 0-10%
  • Equity: 0-5%

Allowable assets

The allowable assets include (but are not limited to) cash and yield securities, listed and unlisted global securities, managed investment schemes, derivatives (both exchange traded and over the counter (OTC) - for example swaps, options, futures, forwards, credit derivatives/credit default swaps, etc). Cash includes investment grade deposits, term deposits, and/or senior investment grade debt securities with maturities of 12 months or less. Specific securities may include bank bills, negotiable certificate of deposits, corporate promissory notes, investment grade senior corporate debt, other financial deposits (all with maturities of 12 months or less) and other instruments that provide broadly similar credit risk and return outcomes.

Yield securities includes government or corporate bonds (and other instruments issued by government or corporates); asset backed securities (including residential, commercial, or other market traded asset types); hybrid securities; inflation linked securities; structured securities/notes; tradeable loans; repurchase agreements; and other instruments that provide in our opinion similar credit risk and return outcomes either issued in Australia or internationally.

The Fund may use derivatives, but does not short sell physical securities or use leverage.