Subscribe to get our latest investment news and insights straight to your inbox.

EMAX February Monthly Report & Update

Overview
  • We said last month that the “coronavirus-related fall in markets …may be a continuing market theme over the next month or two.”
  • This was certainly the case in February, with risk markets falling strongly in the last week of the month. In the midst of falls across most sectors, broad the Australian equity market lost around 7.7% and as would be expected, credit spreads widened. Australian credit spreads outperformed the US and Europe though, where investment grade spreads widened by 15-25bp with high yield spreads widening much more.
  • Our portfolios did well considering this backdrop, with duration and broader overlay positions offsetting the impact of wider credit spreads.
Performance
Month (%)Quarter (%)1 Year (% p.a.)Since Inception* (%)
eInvest Income Maximiser Fund (EMAX)-0.210.67-1.30
Daintree High Income Trust-0.210.676.535.64
RBA Cash Rate0.060.191.061.16
Excess Return-0.270.495.484.48

^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: 3.82
  • Portfolio Yield: 4.14
  • 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 February 2020

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