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ECAS April Monthly Report & Update

Overview
  • April saw a dispersion of returns in credit markets. While credit spreads were wider, this was concentrated in the non-financial corporate sector which saw spreads 19 basis points wider, on average. By contrast, financial spreads were on average 2 basis points tighter.
  • Lower-beta credit markets lagged the broader risk-on move, with higher beta credit performing more strongly.
  • US treasury yields were a little lower on the month, led by real yields as inflation expectations widened with risk sentiment and yield curves steepened. These positions both added value in our overlay. Australian rates underperformed though, with the Australian 10 year ending the month 13 basis points higher.
Performance
Month (%)Quarter (%)1 Year (% p.a.)Since Inception* (%)
eInvest Cash Booster Fund (ECAS)0.0400.150-0.350
RBA Cash Rate0.0200.120-0.280
Excess Return0.0200.030-0.070

^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 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: 0.07
  • Portfolio Yield: 0.95
  • 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 April 2020

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

Interested in purchasing units in the fund? Contact your financial adviser or simply purchase via your online broker, and as always read the PDS for more information. This can be found 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.