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EMAX 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 Income Maximiser Fund (EMAX)3.15-6.29--4.67
Daintree High Income Trust3.00-5.90-1.110.97
RBA Cash Rate0.020.120.960.26
Excess Return3.13-6.40-1.97-0.58

^Inception date for EMAX was 22 November 2019 and inception date for the underlying Daintree High Income Trust was 1 November 2018. Excess Return since inception is measured on the Daintree High Income 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 High 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

EMAX Fund and Investment Objective 

EMAX is an absolute return bond strategy. The Fund 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.

EMAX aims to provide investors with a monthly income stream over the medium term by investing in a diversified portfolio of credit fixed income securities and cash that exceeds the RBA Cash Rate (after fees) by 3-4% over a market cycle.

Key Statistics  
  • Modified duration: 1.32
  • Portfolio Yield: 5.22
  • Average Credit Quality: BBB+
  • Management Cost: 0.65% (incl of GST and RITC)
  • Inception Date: 22 November 2019
  • Monthly Cash Income: EMAX had a distribution of $0.092cpu in April 2020

To read more about eInvest Income Maximiser Fund (Managed Fund) Code: EMAX, 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.