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ECOR December Monthly Report & Update

Overview
  • Performance was close to unchanged, with tighter credit spreads almost offsetting the negative impact of higher bond yields
  • The month was defined by higher interest rates along the yield curve. Interest rate volatility remains higher than it was in the first half of the year
  • Better risk appetite supported credit spreads, as trade war escalation and hard-Brexit tail risks were largely resolved
  • Overlay strategies, in particular hedges, detracted from performance
  • Monthly cash income: ECOR had a distribution of $0.069cpu in December 2019
Performance
Month (%)Quarter (%)1 Year (% p.a.)Since Inception* (%)
eInvest Core Income Fund (ECOR)-0.02--0.02
Daintree High Income Trust-0.474.363.35
RBA Cash Rate0.060.191.181.38
Excess Return-0.080.283.191.97

^ Inception date for ECOR was 22 November 2019 and inception date for the underlying Daintree Core Income Trust was 1 July 2017. Excess Return since inception is measured on the Daintree Trust. Performance shown above are net of fees. To give a long-term view of the fund performance in the asset class, we have shown the returns of the Daintree Core Income Trust. The Trust has identical investments. 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 units on the exchange. Past performance is not a reliable indicator of future performance

Performance

 

ECOR Fund and Investment Objective 

ECOR is an absolute return, cash plus, investment grade bond strategy. ECOR is not constrained by any traditional fixed income index, which provides us the flexibility to seek out the best risk adjusted returns available across regions, sectors and securities.

The aim of ECOR is to provide a steady stream of income and capital stability over the medium term by investing in a diversified portfolio of fixed income securities and cash. ECOR seeks to produce a return (net of fees) that exceeds the RBA Cash Rate by 1.50-2.00% p.a. within a cycle

Key Statistics  
  • Modified duration: 0.99
  • Portfolio Yield: 2.72
  • Average Credit Quality: A
  • Management Cost: 0.45% (incl of GST and RITC)
  • Inception Date: 22 November 2019
  • Monthly Cash Income: ECOR had a distribution of $0.069cpu in December 2019

 

To read more about eInvest Core Income Fund (Managed Fund) Code: ECOR, 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.