Long-Short Credit Fund

Fund Name

The Smarter Money Long-Short Credit Fund

ISIN: AU60SLT25623

Morningstar Ticker: 41597

APIR Codes

Platform/Wholesale/Assisted Units: SLT2562AU

Overview

The Smarter Money Long-Short Credit Fund is an absolute return fixed-income strategy focused on exploiting long and short mispricings in credit markets. You can download the product information sheet here.

The Fund targets returns above the "neutral" Reserve Bank of Australia (RBA) cash rate plus 4% to 6% p.a. over rolling 3 year periods after Management Fees, Administration Fees and Performance Fees. The Fund targets volatility of less than 5% p.a..

The Fund invests primarily in senior and subordinated debt securities, hybrids and derivatives issued by Australian entities domestically and overseas, although it can also invest in these types of securities when they are issued by overseas entities (into the Australian market or offshore). The Fund targets holding the majority of its portfolio in investment-grade quality debt securities and hybrids.

The Fund aims to generate high absolute returns that have low to no correlation with equities, fixed-rate bonds and property markets, from relatively low risk and liquid investments identified through the Portfolio Manager’s active asset-selection process that has been proven over the last 6 years via the SMAC and SMHI strategies. The Fund aims to reliably distribute strong quarterly income.

The Portfolio Manager seeks to generate these returns by taking a “long” or “short” position in relation to assets which it considers are trading below or above fair value. The goal is to generate significant risk-adjusted returns, or “alpha”. The ability to go long or short, either directly or through using derivatives, means the Fund can profit from price rises and price falls. Going long or short can also result in the Fund being leveraged.

 

 

 
Features and Benefits

Returns/Risks

  • The Fund targets 4.0%-6.0% p.a. over the "neutral" RBA cash rate (after fees) with volatility of less than 5% p.a.

Long-Short Credit

  • The Fund actively invests in investment- grade debt securities, hybrids and cash and seeks to identify mispricings that can  correct and deliver alpha. It can use derivatives and leverage to enhance returns.

Flexibility

  • Access your funds within three business days. Daily withdrawal requests and no fixed term.

Suitability

  • Designed to suit individuals, SMSFs, businesses and institutions with an investment timeframe of greater than 3 years.

Income

  • We calculate and accrue interest and earnings daily and pay distributions quarterly.

Registered

  • The fund is a registered managed investment scheme with ASIC.

 

Ratings

LSCF has been rated 'Very Strong' by Australia Ratings. Please contact us to obtain a copy. Ratings are only one factor to be taken into account when deciding whether to invest.

 

 

 

Risks

LSCF 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. The Fund can take long and short positions, borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses. To understand LSCF’s risks better, please refer to the detailed "Risks" section in the PDS.

 

Summary
APIR Code (Platform/Assisted)
  • SLT2562AU
ARSN
  • 617 838 543
ISIN
  • AU60SLT25623
Morningstar Ticker
  • 41597
Fund Inception Date
  • 01 September 2017
Asset Class
  • Alternatives
Target Returns
  • 4.0%-6.0% p.a. over the cash rate after fees
Investment Manager
  • Smarter Money Investments Pty Ltd
Responsible Entity
  • One Vue RE Services Limited
Custodian
  • FundBPO Pty Ltd
Withdrawals
  • Daily Application & Withdrawal Requests
Distributions
  • Quarterly: 31 March, 30 June, 30 September, 31 December

Reinvestment
  • Reinvested or Paid Out
Unit Pricing/Valuations
  • Daily (earnings accrue daily)
Minimum Investment
  • $1,000
Direct Debit
  • Yes
Regular Savings Plan
  • No
Earnings
  • A variable return based upon current fund investments and prevailing financial markets

Investments

  • Australian deposits, term deposits and floating- rate notes  issued by banks and companies, derivatives and leverage
Risk
  • Investment risk could include delays in repayments and fluctuations in income and the value of capital invested. Refer to the PDS for potential risks
Reporting
  • Online 24/7 account access, Application Confirmation, Distribution Statements, Annual Tax Statements

 

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