- February saw Australian 10-year bond yields rise by 78 basis points, the largest move higher since June 1994. This saw manty fixed income products perform poorly, and the low duration stance of the Daintree funds amid the exceptionally low yield environment of the last several months proved prescient.
- Credit market performance was mixed. Spreads tightened in residential mortgage-backed securities and major bank Tier 2 (by 8 basis points and 12 basis points respectively), but spreads in industrial sectors widened.
- Our overlay added value for the month, driven by a yield curve steepening position.
|Month (%)||Quarter (%)||1 Year (%)||Since Inception* (% p.a.)|
|eInvest Income Maximiser Fund (EMAX)||0.64||1.38||-1.04||0.12|
|Daintree High Income Trust||0.64||1.37||-0.77||2.85|
|RBA Cash Rate||0.01||0.02||0.22||0.76|
^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
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.
- Modified duration: 0.99
- Portfolio Yield: 4.27
- Average Credit Quality: BBB
- Management Cost: 0.65% (incl of GST and RITC)
- Inception Date: 22 November 2019
- EMAX paid a distribution of $0.092 dollars per unit in February 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.