Perpetual Wholesale Diversified Income (PER0260AU) Report & Performance

What is the Perpetual Wholesale Diversified Income fund?

Perpetual Wholesale Diversified Income aims to provide regular income and consistent returns above the UBS Bank Bill Index over rolling three-year periods (before fees and taxes) by investing in a diverse range of income generating assets. The fund’s approach to delivering returns and managing risk is through an active and risk aware investment process which invests in a diversified core portfolio of liquid investment grade credit securities. When the environment is supportive Perpetual seeks to enhance returns by taking more risk whether that is in maturity, credit rating, subordination or gearing. The fund can also invest in alternative income generating securities such as mortgages, infrastructure debt and private debt. This approach to portfolio construction is Perpetual’s preferred method to deliver investors the highest possible risk adjusted returns.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Perpetual Wholesale Diversified Income

Perpetual Wholesale Diversified Income Fund Commentary August 31, 2023

Income return was the most substantial contributor to outperformance during the month. led by RMBS. banks and non-financial corporates The income generated by the Fund’s exposure to floating rate notes and allocation to cash have benefitted from the aggressive increase h base rates over the past 16 months. The portfolio’s running yield was 5.8% at month end, with the spread measured at 1.9%. Credit spread contraction contributed to outperformance during August as domestic spreads continued to grind tighter. The Fund’s exposure to secur it isecl sectors was the most significant contributor to credit spread return. This was partially offset by widening spreads among a number of Euro denominated bonds across diversified financials. real estate and non-financial corporate sectors.

In recognition of tightening financial conditions, the Fund continues to maintain a highly liquid sleeve (•1315%) of cash and government securities which protects against liquidity tail risks. The Fund maintains a small (0.4 years) duration exposure as a result of the government bond allocation. The Fund’s duration exposure was rewarded during the month as yields ended the month slightly lower. contributing to return. The Manager elected to shorten the Fund’s duration while maintaining the government bond exposure.

Issuance volumes were resurgent during August and the Fund was active in primary and secondary markets The Manager elected to add exposure to domestic and offshore banks. The Fund took part in the 45.0B senior unsecured deal from CBA before monetising the new issue concession. taking profit shortly after issue. The Manager elected to take part in the new 10-year 4750M fixed rate deal from Lloyds Banking Group which performed well over the remainder of the month, contributing to outperformance.

The outlook for credit remains delicately poised. the Manager remains conscious of the implications of slowing growth and tightening financial conditions for credit valuations and liquidity. The Fund remains defensively positioned while retaining the capacity to take advantage d relative value opportunities presented as the outlook improves.

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.
Perpetual Wholesale Diversified IncomePER0260AUManaged FundsFixed IncomeDiversified CreditFixed Income - Diversified Credit IndexGlobal Aggregate Hdg Index1.15 BN0.59%00.1%

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.
Perpetual Wholesale Diversified Income0.78%2.24%7.79%3.27%4.23%1.33%1.71%2.19%-0.07%-2.64%-9.2%

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.
Perpetual Wholesale Diversified IncomeFixed Income - Diversified Credit Index0.8%-0.1%0.22%0.03%0.03%0.351.95%1.53%0.630.83

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Perpetual Wholesale Diversified IncomeYes-https://www.perpetual.com.au/-

Product Due Diligence

What is Perpetual Wholesale Diversified Income

Perpetual Wholesale Diversified Income is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Diversified Credit 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 Perpetual Wholesale Diversified Income has Assets Under Management of 1.15 BN with a management fee of 0.59%, a performance fee of 0 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 Perpetual Wholesale Diversified Income has returned 0.78% in the last month. The previous three years have returned 3.27% annualised and 2.19% each year since inception, which is when the Perpetual Wholesale Diversified Income 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 Perpetual Wholesale Diversified Income first started, the Sharpe ratio is 0.53 with an annualised volatility of 2.19%. The maximum drawdown of the investment product in the last 12 months is -0.07% and -9.2% 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 Perpetual Wholesale Diversified Income has a 12-month excess return when compared to the Fixed Income - Diversified Credit Index of 0.8% and -0.1% 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. Perpetual Wholesale Diversified Income has produced Alpha over the Fixed Income - Diversified Credit Index of 0.22% in the last 12 months and 0.03% since inception.

What are similar investment products?

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

What level of diversification will Perpetual Wholesale Diversified Income provide?

Perpetual Wholesale Diversified Income has a correlation coefficient of 0.83 and a beta of 0.35 when compared to the Fixed Income - Diversified Credit 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 Perpetual Wholesale Diversified Income and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Perpetual Wholesale Diversified Income with the Global Aggregate Hdg Index?

For a full quantitative report on Perpetual Wholesale Diversified Income compared to the Global Aggregate Hdg Index, you can click here.

Can I sort and compare the Perpetual Wholesale Diversified Income to do my own analysis?

To sort and compare the Perpetual Wholesale Diversified Income financial metrics, please refer to the table above.

Has the Perpetual Wholesale Diversified Income 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 Perpetual Wholesale Diversified Income?

If you or your self managed super fund would like to invest in the Perpetual Wholesale Diversified Income please contact via phone or via email .

How do I get in contact with the Perpetual Wholesale Diversified Income?

If you would like to get in contact with the Perpetual Wholesale Diversified Income manager, please call .

Comments from SMSF Mates

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

Video Gallery

No current media available.

Historical Performance Commentary

Performance Commentary - July 31, 2023

Income return was a substantial contributor to outperformance during the month, led by RMBS, banks and non-financial corporates. The portfolio’s running yield was 5.7% at month end, with the spread measured at 1.8%.

Credit spread tightening was the most significant contributing factor to return during the month. Domestic spreads narrowed over the month on supportive supply dynamics and increasing investor risk appetites. Subordinated bank exposures performed well as tier 2 and hybrid paper tightened, reflecting elevated secondary market demand and a paucity of new issues. Tightening RMBS spreads also contributed to outperformance. Lastly, the Fund benefitted from exposure to foreign denominated credit across multiple sectors. USD spreads outperformed AUD counterparts and the Fund’s exposure to USD denominated corporates, domestic and offshore banks were constructive. The Manager elected to lock in recent profits on foreign denominated issues from Ausnet and Macquarie following rallies early in the month.

In recognition of tightening financial conditions, the Fund continues to maintain a highly liquid sleeve (~15-18%) of cash and government securities which protects against liquidity tail risks. The Fund maintains a small (0.6 years) duration exposure as a result of the government bond allocation.

Primary market activity was subdued and the Manager was selective in purchases made during the month. The Fund increased its exposure to CMBS via a new $500M Think Tank deal. Early in July, the Manager elected to add exposure to a recently issued EUR denominated Morgan Stanley senior bond which tightened throughout the remainder of the month, contributing to outperformance.

While the outlook for credit has improved, the Manager remains conscious of the implications of slowing growth and tightening financial conditions for credit valuations and liquidity. The Fund remains defensively positioned while retaining the capacity to take advantage of relative opportunities presented as the outlook improves.

Performance Commentary - June 30, 2023

The Fund’s June relative return was notable, accounting for more than 25% of the Fund’s annual outperformance target in a single month. Income return was a significant contributor to outperformance during the month, led by RMBS, domestic and offshore banks. The portfolio’s running yield was 5.7% at month end, with the spread measured at 2.0%.

Credit spread tightening was the most substantial contributor to return during June. Domestic credit spread dynamics were relatively subdued, narrowing slightly on aggregate while remaining in range of recent levels. The Fund’s exposure foreign denominated hybrid securities was the key contributing factor to the robust credit spread return. After reducing hybrid exposures early in the year, the Manager selectively added exposure to Macquarie and Westpac USD denominated hybrids at attractive levels following the sharp selloff in March in the wake of UBS’s purchase of Credit Suisse. In June, the spreads on these positions narrowed substantially and the Manager elected to take profit on the Fund’s USD Westpac hybrid exposures. Elsewhere, Euro denominated hybrids in the utilities and telecommunications sectors were significant contributors.

In recognition of tightening financial conditions, the Fund continues to maintain a highly liquid sleeve (~15-18%) of cash and government securities which protects against liquidity tail risks. Allocation to government bonds contribute to the fund’s running income and allow the manager to inexpensively express duration positions. During the month the Manager added exposure to government bonds, increasing the Fund’s duration to 0.6 years by month end.

The Fund was relatively active in primary and secondary markets during the month. The Manager elected to take part in the record-breaking subordinated deal from Westpac before monetising the new issue concession, trimming the exposure as spreads tightened. The Fund invested in the new fixed rate issue from AGI finance which the manager believes offers attractive carry for the level of risk. The Fund also bought some recently issued EUR denominated Sydney Airport senior bonds in secondary which were priced cheaply relative to the AUD BBB curve. The Fund remains defensively positioned while retaining the capacity to take advantage of relative opportunities.

Performance Commentary - May 31, 2023

Income return was the most significant determinant of outperformance during May. The Fund continues to collect a healthy running income in excess of the benchmark and rising interest rates continue to increase the coupons paid on the Fund’s floating rate assets. The portfolio’s running yield was 5.6% at month end, with the spread measured at 2.0%.

Credit spread tightening added modestly to performance. During a month of benign spread dynamics, non-financial corporate exposures detracted slightly due to limited spread widening across a small number of issuers with a modest positive contribution from utilities.

In recognition of tightening financial conditions, the Fund continues to maintain a highly liquid sleeve (14-15%) of cash and government securities which protects against liquidity tail risks. During the month the Manager actively traded government bonds electing to add to and later liquidate the position.

Allocation to government bonds supported the Fund’s running income during the month, the Fund’s curve positioning contributed to outperformance. The Fund was active in primary and secondary markets during May. The Manager was able to monetise new issue concessions on deals from NAB and Credit Agricole. The Fund added allocation to a number of RMBS and ABS issues, taking the opportunity to rotate into higher yielding tranches and longer dated issues. Domestic regional and offshore bank exposures were added to in primary. Non-financial corporate exposures were selectively trimmed with the Manager taking profits on a number of positions. This included a USD denominated NBN co fixed rate bond which performed well as a result of Moody’s upgrading its credit rating during the month.

Throughout the first half of 2023, the Manager has reduced credit risk in the Fund in line with the negative outlook. The credit outlook has improved recently while remaining slightly negative. Accordingly, the Fund remains defensively positioned while retaining the capacity to take advantage of relative opportunities.

Performance Commentary - December 31, 2022

Income return was the most significant contributor to relative return during the month. Financials and securitised sectors were the most substantial drivers of income return with non-financial corporate exposures also contributing. Ongoing increases in interest rates and expanding credit premia have contributed to the increase in portfolio income over the past year. The portfolio’s running yield was 4.8% at month end, with the spread measured at 2.1%. Credit spread dynamics contributed to outperformance during December. Credit spreads traded in a tight range, narrowing over the course of the month. Credit spread performance was led by domestic and offshore banks with corporates and utilities also contributing.

The Portfolio’s exposure to USD denominated domestic bank debt performed well, led by Macquarie and Westpac USD hybrids. The Fund’s small, short position in the EUR Xover CDS index performed well during December as Euro corporate spreads surged in the middle of the month. The Manager exited the position at the peak in the wake of the surprise announcement on monetary policy by the Bank of Japan (BoJ), which loosened the yield on its ten year government bonds from 0.25% to 0.5%, wreaking havoc on equity, bond and currency markets. In recognition of tightening financial conditions, reduced liquidity (as a result of quantitative tightening by central banks) and the challenging outlook for credit, the Fund maintains approximately 10-15% weighting across cash and highly liquid government and government adjacent sectors. After selectively adding during December, the Fund‘s semi-government exposure was 8.3% at month end. The contribution of duration exposure was constructive. The portfolio began the month with near 0 duration. The Manager elected to add duration exposure as long term yields rose following the surprise BoJ policy change. As yields retraced lower by month end, portfolio performance benefited from the modest positive duration exposure (less than six months). Sector allocation was actively managed during the month.

Allocation to domestic bank and semi government sectors was increased. RMBS exposures were rotated with the manager electing to take part in the December Resimac deal and trimming a number of existing RMBS positions. Elsewhere, the Fund took part in the new benchmark deal from Suncorp Metway. As the outlook for credit spreads improves, the Fund retains capacity to take advantage of relative value opportunities.

Performance Commentary - November 30, 2022

Income return was the most significant contributor during the month. Financials and securitised sectors were the most substantial drivers of income return with utilities and corporate exposures also contributing. As interest rates continue to rise and credit premia widen, the Fund’s running yield continues to increase, mitigating the impact of ongoing credit spread volatility. The portfolio’s running yield was 4.5% at month end, with the spread measured at 2.0%. Credit spread dynamics were constructive for performance during the month. Credit spreads tightened on aggregate while performance was mixed by sector.

The Fund’s allocation to offshore financials performed well, most notably a number of Euro denominated hybrid exposures. Domestic bank subordinated spreads were impacted during the month as APRA issued a statement reiterating prudential requirements for callable instruments. Over recent months, in recognition of tightening financial conditions, reduced liquidity and the challenging outlook for credit, the Fund has held approximately 20%-25% in cash and highly liquid government bonds. During November, this defensive allocation was reduced in line with the improving outlook to 10-15%. The Manager elected to invest in semi-government securities which offer a slight premium to government bonds while remaining highly liquid and relatively low risk.

The Fund’s semi-government exposure’s duration was hedged via short government bond futures which gave the fund exposure to swap spread tightening. During the month, the small semi-government allocation performed well, contributing to outperformance. Sector allocation was actively managed during the month. Exposure to securitised sectors was selectively increased over the month.

The Manager believes that securitised assets currently offer relative value following recent tightening of the spread between the 1-and-3 month swap rates, with most securitised bond coupons benchmarked against 1 month bank bill swap rates. Elsewhere, the Manager elected to take part in new deals from NAB and ING bank, both of which priced at attractive levels and performed well in secondary

Performance Commentary - October 31, 2022

Income return was the most substantial contributing factor to performance during the month. The fund’s running yield continues to increase as interest rates rise and credit premiums widen remaining a crucial buffer mitigating ongoing volatility in credit and fixed income markets. The portfolio’s running yield was 3.9% at month end, with the spread measured at 1.9%. Credit spread dynamics were slightly negative for performance during October. Credit spreads moved slightly wider over the month while swap spreads expanded sharply. Credit spreads remain impacted by reduced secondary market liquidity. The Fund’s exposure to USD corporates and financials were the most significant detractors as USD credit widened.

The Fund’s long position in the EURO crossover CDS index (which tracks European non-investment grade corporate issuers) performed well during the month. Euro denominated spreads have recovered over recent months following a sharp widening in June 2022. The Manager elected to take profits on the position, reducing credit risk within the portfolio. In recognition of tightening financial conditions, reduced liquidity and the challenging outlook for credit, the Fund continues to actively trade Australian government bonds. Over recent months, the Fund has held approximately 20%-25% in cash and highly liquid government bonds. During October, the Fund’s government bond exposure performed well as yields rallied and by month end, the Manager had reduced the position. The Manager was active in primary and secondary markets during the month.

The Fund took part in new deals from ANZ and Commonwealth Bank which offered attractive spreads and are indicative of the potential opportunities presented by recent spread widening. Elsewhere, the Manager was opportunistic in purchasing a number of competitively priced RMBS lines in secondary that were liquidated as part of the response of UK pension funds to the GILTs crisis. Securitised assets performed well during the month, with credit spreads contracting and contributing positively to portfolio returns. Overall, the fund remains defensively positioned in recognition of the challenging outlook for credit spreads and increasingly tight financial conditions, while retaining the flexibility to take advantage of relative value opportunities presented by recent volatility.

Performance Commentary - August 31, 2022

The rise in credit yield premiums and official cash rates over the first half of 2022 has improved the Fund’s running yield as a result of its predominantly floating rate structure. The portfolio’s running yield was 3.1% at month end with the spread measured at 2.0%.

The expansion of credit spreads observed over recent months slowed in July. While AUD spreads ended the month slightly wider, USD and especially EUR spreads tightened, the latter recovering a portion of the dramatic selloff observed in June. During June, following the dramatic selloff in EUR credit in June, The Manager elected to add a long position in the EURO crossover CDS index (which tracks European non-investment grade corporate issuers). As EUR spread recovered, the position contributed substantially to performance. The Fund’s exposure to financial spreads – most notably offshore banks – also performed well, contributing to outperformance.

The Fund continues to hold and actively trade Australian government bonds, contributing to portfolio liquidity and running income, whilst further strengthening the portfolios credit quality. In recognition of tightening financial conditions and the challenging outlook for credit the Manager has allocated approximately 25% of the fund to highly liquid exposures across cash and government bonds. The funds duration exposure performed well during July, with bond yields rallying on rising recession concerns and moderating monetary policy tightening expectations.

With a challenging outlook for credit spreads and reduced liquidity in secondary markets, risk management remains paramount. The Fund maintains its defensive positioning while retaining the flexibility to take advantage of relative value opportunities presented by recent volatility. The contribution of duration and synthetic credit positions during the month demonstrate the potential benefit offered by the flexibility of the Fund’s elevated cash and government bond allocation.

Kind words from Aussies managing
their own self funded futures

  • SMSF Mate is a unique website because it has ideas about how to approach SMSFs, insurance and other financial topics that come straight from first hand experience. It's much more useful than what you find on all the other financial websites that just offer generic info that you could easily get on the ATO's website. It's also nice to know there's no financial incentive behind the information, it's legitimately there to help people understand self-managed super funds and how to get the most out of them, not to get an affiliate commission from a broker or other financial services provider. The investment product information is also incredibly useful, I've never seen this kind of functionality on any other website that let's you look at such a wide range of products, sort by what info is most interesting or important to you, and subscribe to updates for different funds and financial products all in one place. Definitely worth checking out if you own or are considering an SMSF!

    David G, Self-Employed, SMSF Owner
  • SMSF Mate provides a unique insight into superannuation and financial topics in a way that is easier to understand than conventional websites. The colloquial nature of the site makes it easy to understand and they often speak about complicated topics in lamens terms so I can wrap my head around them. The investment product information is a great way to research funds that I am interested in investing in with my SMSF and there is a lot of helpful information on the site for better structuring my investment portfolio. In comparison to other websites which offer similar information, SMSF Mate excels as the information is free to access whereas many other sites charge a subscription fee for the same thing. Overall, I think SMSF Mate is a great resource for SMSF trustees and is worth looking at for a variety of super-related topics. Thanks.

    Tim B, Business Owner, SMSF Trustee