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ECAS February Monthly Report & Update

Overview
  • We said last month that the “coronavirus-related fall in markets …may be a continuing market theme over the next month or two.”
  • This was certainly the case in February, with risk markets falling strongly in the last week of the month. In the midst of falls across most sectors, the broad Australian equity market lost around 7.7% and as would be expected, credit spreads widened. Australian credit spreads outperformed the US and Europe though, where investment grade spreads widened by 15-25bp with high yield spreads widening much more.
  • Our portfolios did well considering this backdrop, with duration and broader overlay positions offsetting the impact of wider credit spreads.
Performance
Month (%)Quarter (%)1 Year (% p.a.)Since Inception* (%)
eInvest Cash Booster Fund (ECAS)0.0800.236-0.236
RBA Cash Rate0.0600.187-0.226
Excess Return+0.020+0.049-+0.010

^Inception date for the eInvest Cash Booster Fund was 12 November 2019. Performance shown above are net of fees. Fund returns are calculated using net asset value per unit of the underlying fund at the start and end of the specified period and do not reflect the brokerage or the bid/ask spread that investors incur when buying and selling 

Performance

ECAS Fund and Investment Objective 

ECAS is an alternative to term deposit investments and provides investors with regular monthly income. ECAS invests in APRA regulated Authorised Deposit Taking Institutions as well as a range of high quality, investment-grade bonds and floating rate notes.

ECAS aims to provide investors a high level of capital stability over the short term, by investing in a diversified portfolio of cash and short-term money market and fixed income securities, and to provide a total return (after fees) that exceeds the RBA Cash Rate by 50 basis points measured annually.

Key Statistics  
  • Modified duration: 0.09
  • Portfolio Yield: 1.00
  • Average Credit Quality: A-
  • Management Cost: 0.15% (incl of GST and RITC)
  • Inception Date: 12 November 2019
  • Monthly Cash Income: ECAS had a distribution of $0.050cpu in February 2020

To read more about eInvest Cash Booster Fund (Managed Fund) Code: ECAS, click here.

Keen to learn more? Read why Active managers tend to outperform passive fixed income managers.

Past performance is not a reliable indicator of future performance. Please read the PDS prior to investing. This information is general in nature and is subject to the terms and conditions outlined here.