The Smarter Money Fund
Morningstar Ticker: 19382
Retail/Direct Units: SLT0042AU
Platform/Wholesale/Assisted Units: CRE0014AU
mFund code: SMF01
The Smarter Money Fund, called Smarter Money Active Cash (SMAC) strategy, is an independently rated and recommended strategy targeting low-risk cash and fixed-income returns that exceed the RBA’s cash rate by 1%-2% pa after fees, over rolling 12 month periods. SMAC actively invests in a portfolio of Australian bank deposits and investment grade floating-rate notes with a dollar weighted average “A” credit rating. SMAC does not invest in fixed-rate bonds (unless interest rate risk is swapped out), sub-investment grade bonds, debentures, AT1 hybrids, equities or overseas bonds. SMAC's portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds.
SMAC has consistently outperformed: its benchmark, which is the RBA cash rate plus 1% per annum after fees; the AusBond Bank Bill Index, which is made up of Australian bank-issued bills; the AusBond Floating-Rate Note Index, which is made up of Australian-issued and investment-grade floating-rate notes; and the average peer fund. Past performance does not, however, assure future returns. For a full performance analysis, click here.
SMAC has been independently reviewed and rated by several research houses, including Lonsec, Mercer, Atchison Consultants and Australia Ratings. Please contact us to obtain copies of the available ratings reports. These ratings are only one factor to be taken into account when deciding whether to invest. As at March 2017 the Smarter Money Fund (Platform Investor) received a five-star Morningstar Rating, based on its assessed 3 year and 5 year risk-adjusted performance within the Morningstar Peer Group - Australian Short Term Fixed Interest - Investment Trust (see rating definition and disclaimer below).
SMAC is listed on a range of independent investment platforms, which are outlined here.
SMAC targets holding 20%-30% of its investments cash and cash equivalents with the balance invested in Australian floating-rate bonds that generally move in line with the RBA cash rate. As a minimum, the bonds must have an "investment grade" rating with a target average "A" rating. The fund does not invest in any related party securities.
SMAC is not a bank deposit. It is a managed investment scheme registered and regulated by the Australian Securities and Investments Commission (ASIC). All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. To understand SMAC’s risks better, please refer to the detailed "Risks" section in the PDS, which can be downloaded here.
Rating Definition: The Morningstar Rating is an assessment of a fund's past performance - based on both return and risk - which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision. Morningstar Disclaimer: Copyright 2017 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at . You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").
Lonsec Disclaimer: The Lonsec Rating (assigned April 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Smarter Monday Investments product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website.