Higher Income Strategy

You can read the latest Smarter Money Higher Income (SMHI) performance report here or find out more in the download centre here.

Fund Name

The Smarter Money Higher Income Fund

ARSN 601 093 485

Morningstar Ticker: 40536

ISIN code: AU60SLT00527

APIR Codes

Direct Units: SLT0051AU

Assisted Units: SLT0052AU 

Institutional Units: SLT0049AU

mFund code: SMF02

Overview

Smarter Money Higher Income is a low duration, short-term fixed-interest investment solution that targets returns that outperform the Reserve Bank of Australia’s cash rate by 1.5% - 3.0% per annum after all fees, over rolling 12 month periods. Smarter Money Higher Income invests in a portfolio of Australian deposits, Australian investment-grade bonds (mainly issued by banks) and hybrids issued by banks and companies. 

Returns

SMHI was publicly launched in September 2014 and has outperformed its benchmark, which is the RBA cash rate plus 1.5% per annum after fees, the AusBond Floating-Rate Note Index, and most alternatives since inception. For the latest performance analysis, please click here

Ratings

SMHI has been independently reviewed and rated by several research houses, including Financial Express, Lonsec, 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 2018, the Smarter Money Higher Income Fund (Assisted/Platform Investor) received a five-star Crown Fund Rating from Financial Express as recongition of outstanding achievement. A FE Fund Rating of Five is a powerful symbol of quality, representing a fund’s demonstrable ability to add long term value whilst managing risk in a highly effective manner. Only the top 10% of funds score highly enough to be awarded Five FE Crowns.

 

 

  

Investments

SMHI actively invest in a portfolio of Australian bank deposits, floating-rate notes and hybrids with a target dollar-weighted average credit rating in the “A” band. SMHI does not invest in fixed-rate bonds (unless interest rate risk is swapped out), equities or overseas bonds. SMHI's portfolio managers add value through active asset-selection with materially lower volatility and interest rate duration risk than traditional fixed interest funds.

Risk

SMHI 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 SMHI's risks better, please refer to 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.

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.

 

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