The Smarter Money Fund
Morningstar Ticker: 19382
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. The Lonsec rating is available on request. 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.
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.
Financial Express Crown Rating: © 2018 FE. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FE, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by FE, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete, or accurate. FE shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. FE does not guarantee that a fund will perform in line with its FE Crown Fund Rating as it is a reflection of past performance only. Likewise, the FE Crown Fund Rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.
Australia Ratings Analytics Disclaimer: The information contained in the Australia Ratings Analytics report (assigned January 2019) and encapsulated in the investment rating is of a general nature only. The report and rating reflect the opinion of Australia Ratings Analytics Pty Limited (AFSL 494552). It does not take into account an individual’s objectives, financial situation or needs. Professional advice should be sought before making an investment decision. A fee has ben paid by the fund manager for the production of the report and investment rating.