Daintree Core Income Trust (WPC1963AU) Report & Performance

What is the Daintree Core Income Trust fund?

Daintree Core Income Trust aims to provide a steady stream of income and capital stability over the medium term, by investing in a diversified portfolio of credit fixed income securities and cash, and to provide a total return (after fees) that exceeds the Benchmark measured throughout a market cycle. Daintree applies a pragmatic and risk averse approach to managing a portfolio of global fixed income securities. The Trust targets an absolute return (greater than cash) over time, by investing in a diversified portfolio of predominantly global investment grade credit securities which meets Daintree’s investment standards. In managing the portfolio, Daintree applies a range of strategies that include duration and yield curve management, (actively managing the maturity profile of the portfolio), sector rotation and individual security selection. All securities must carry a Standard & Poor’s rating (or equivalent) of BB- or higher at the time of purchase. The Trust invests in non-Australian denominated securities which may be fully or partially hedged back to the Australian Dollar.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Daintree Core Income Trust

Daintree Core Income Trust Fund Commentary September 30, 2023

The Core Income Trust returned 0.49% for the month net of fees. The Fund’s performance was supported by coupon income and credit spreads. Duration exposure was kept low which reduced volatility, but the quantum of yield moves still created some drag on performance as yield curves steepened considerably. Overlay was a slight positive contributor for the month.

Credit markets remained resilient amidst the uncertainty created by rising interest rates. Based on recent spread performance, credit investors remain sanguine about the medium-term outlook.

The Fund participated in selected new issuance, identifying opportunities from toll road operators and a range of securitised sectors.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Daintree Core Income TrustWPC1963AUManaged FundsFixed IncomeMulti-Strategy IncomeFixed Income - Multi-Strat Income IndexGlobal Aggregate Hdg Index391.89 M0.5%0.00%0.1%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Daintree Core Income Trust0.58%1.92%8.77%2.77%2.87%0.47%1.62%1.45%0%-3.54%-3.54%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Daintree Core Income TrustFixed Income - Multi-Strat Income Index1.86%0.61%NA%NA%NA%0.063.37%3.09%0.440.64

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Daintree Core Income TrustYes-https://perennial.com/-

Product Due Diligence

What is Daintree Core Income Trust

Daintree Core Income Trust is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Multi-Strat Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Daintree Core Income Trust has Assets Under Management of 391.89 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.1%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Daintree Core Income Trust has returned 0.58% in the last month. The previous three years have returned 2.77% annualised and 1.45% each year since inception, which is when the Daintree Core Income Trust first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Daintree Core Income Trust first started, the Sharpe ratio is NA with an annualised volatility of 1.45%. The maximum drawdown of the investment product in the last 12 months is 0% and -3.54% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Daintree Core Income Trust has a 12-month excess return when compared to the Fixed Income - Multi-Strat Income Index of 1.86% and 0.61% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Daintree Core Income Trust has produced Alpha over the Fixed Income - Multi-Strat Income Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - Multi-Strat Income Index category, you can click here for the Peer Investment Report.

What level of diversification will Daintree Core Income Trust provide?

Daintree Core Income Trust has a correlation coefficient of 0.64 and a beta of 0.06 when compared to the Fixed Income - Multi-Strat Income Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Daintree Core Income Trust and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Daintree Core Income Trust with the Global Aggregate Hdg Index?

For a full quantitative report on Daintree Core Income Trust compared to the Global Aggregate Hdg Index, you can click here.

Can I sort and compare the Daintree Core Income Trust to do my own analysis?

To sort and compare the Daintree Core Income Trust financial metrics, please refer to the table above.

Has the Daintree Core Income Trust been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Daintree Core Income Trust?

If you or your self managed super fund would like to invest in the Daintree Core Income Trust please contact via phone or via email .

How do I get in contact with the Daintree Core Income Trust?

If you would like to get in contact with the Daintree Core Income Trust manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Daintree Core Income Trust. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

The Core Income Trust returned 0.83% for the month net of fees.

Overlay was slightly positive for the month, but high coupon receipts combined with a narrowing of credit spreads were the main drivers of returns as credit markets continued their positive year. Economic conditions have exceeded expectations, and this has seen credit spreads tighten. Credit investors, based on recent spread performance, remain sanguine about the short-to-medium term outlook.

The Fund participated in selected new issuance, identifying opportunities from Lloyds Group and a range of securitised sectors.

Performance Commentary - July 31, 2023

The Core Income Trust returned 0.70% for the month, net of fees. The fund’s performance was supported by coupon income and credit spreads.

Credit markets continued their positive year, with economic conditions exceeding expectations and pushing credit spreads tighter.

Credit investors, based on recent spread performance, remain sanguine about the short-to-medium term outlook.

Interest rates were volatile, with the shorter end of the curve rallying as the market debates whether the RBA tightening cycle has now concluded. We believe it is too early to make this determination and keep our duration positioning close to zero.

The Fund did not participate in any new primary issuance in July, having taken significant steps during the first half of the year to reposition toward optimal coupon income generation.

Performance Commentary - June 30, 2023

The Core Income Trust returned 0.56% for the month net of fees. The fund’s performance was supported by coupon income and credit spreads. Duration created a modest drag as did overlay and hedging.

Credit markets continued their positive year, with volatility in March quickly absorbed by the larger tightening trend. Spread performance suggests credit investors are sanguine about the short-to-medium term outlook.

Interest rates rose over the month, as rate hikes continue and expectations for further tightening remain priced for the remainder of this year. Having reduced duration toward the beginning of May, the impact on fund performance was minimal.

The Fund continues to prudently add risk, which includes selective participation in primary issuance across corporate and securitised transactions.

Performance Commentary - May 31, 2023

The Core Income Trust returned 0.34% for the month, net of fees. The fund’s performance was supported by coupon income and credit spreads. Duration created a modest drag as did overlay and hedging. Credit markets were resilient with spreads holding firm or modestly tightening. A paucity of significant data allowed recent trends to continue, with higher yields enticing a broader investor base.

Interest rates rose over the month, but having reduced duration toward the beginning of May, the impact on performance was minimal. The Fund continues to prudently add risk, which includes selective participation in primary issuance across financial, corporate and securitised transactions.

Performance Commentary - April 30, 2023

The Core Income Trust returned 0.39% for the month net of fees. The fund’s performance was supported by coupon income and credit spreads. Duration created a modest drag while overlay and hedging contributions were positive. Volatility in rates markets subsided in April but remained higher than in recent years.

Incoming economic data remains mixed, but at the margin results are underwhelming market expectations. Yield curves remain inverted but there is growing dispersion between 2yr/10yr and 3m/10yr curves, implying the market is expecting interest rates to be cut as early as this year. We are sceptical that such a scenario will play out during 2023, but we cannot rule out the possibility that short-term interest rate markets are handicapping the possibility of a severe stress event that requires substantial rate cuts.

Difficulties remain among US regional banks, one of the possible sources of a severe stress event. However, even as issues with First Republic Bank play out, recent results have revealed a decidedly mixed picture that, nonetheless, is a little better than feared. We expect the situation to remain fluid in the months ahead. Following our change in risk appetite in January, we continued in April to prudently shift portfolios away from cash and short-dated assets, selectively participating in primary issuance, predominantly in securitised assets where relative value remains attractive.

Performance Commentary - February 28, 2023

The Core Income Trust returned 0.32% for the month net of fees. The fund’s performance was driven by coupon income and narrower credit spreads. Continued stronger than expected economic data has encouraged investors to contemplate a scenario where growth remains resilient in the face of higher interest rates, scuttling any possibility of a pivot later this year, described as a “no landing”. This was supportive of risk assets that have also benefitted from a short-term liquidity injection on a global basis even as the US Federal Reserve quantitative tightening programme continues.

Sovereign yields at the short- and long-ends rose in response, while yield curves generally inverted further, in some cases to record levels. The improvement in the growth backdrop is supported by various drivers such as the re-opening of China, strength in US consumption that is likely to continue for longer than expected, and the absence of the fiscal drag in the US that featured in 2022.

In Australia too, the reopening of China should support growth. We acknowledge that the RBA may remain hawkish for longer as a result. Following our change in risk appetite in January, we continued to prudently shift portfolios away from cash and short-dated assets, selectively participating in primary issuance in the senior unsecured banking sector where the market technical was supportive, and in securitised assets where relative value remains attractive.

Performance Commentary - December 31, 2022

The Core Income Trust returned 0.75% for the month net of fees. The fund’s performance was positively impacted by coupon income, narrower credit spreads and overlay strategies. The weaker-than-expected US CPI report supported markets, although this was offset by the ECB and Bank of England raising rates and indicating further hikes to come. The Bank of Japan adjustment to its yield curve control program was also a shock to markets amidst illiquid end-of year trading conditions, but the net result was a strong performance for financial issuers, particularly in subordinated paper.

The Australian 10-year bond yield rose by more than 50bp in December, with early January price action moving to reverse this sell off. Our core duration position is zero, and our view remains that inflation momentum will be more difficult to lower than what the markets currently assumes. Given our defensive positioning and continuing modestly bearish outlook for spreads over the medium term, we avoided new issues during the month. We continue to carry larger than normal cash and short-term securities weightings in the fund.

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