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ECOR July Monthly Report & Update

Overview
  • July was a particularly strong month for credit, with credit spreads driving fund performance. Financial spreads continued to outperform spreads in the non-financial sectors.
  • In the financial sector, strong earnings and a weaker starting point for spreads from offshore banks saw these names outperform their domestic counterparts. Nonetheless, Australian bank senior spreads are now at post-GFC tights (41bp over swap, on average).
  • The investor reach for yield did not stop at credit markets. Duration was also in demand, with the yield curve flattening despite the government bond market digesting $42bn of supply.
  • Overlay strategies added value across both currencies (e.g. long EURUSD), and rates (e.g. long Italy rates, long US inflation).
Performance
Month (%)Quarter (%)1 Year (% p.a.)Since Inception* (%)
eInvest Core Income Fund (ECOR)0.711.88-0.43
Daintree Core Income Trust0.801.921.762.92
RBA Cash Rate0.020.060.600.32
Excess Return0.691.810.900.10

^ 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

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: 0.69
  • Portfolio Yield: 2.13
  • Average Credit Quality: A
  • Management Cost: 0.45% (incl of GST and RITC)
  • Inception Date: 22 November 2019
  • ECOR paid a distribution of $0.069 dollars per unit in July

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