Yarra Income Plus Fund (JBW0016AU) Report & Performance

What is the Yarra Income Plus Fund fund?

Yarra Income Plus Fund aims to provide regular income and to achieve medium term capital growth through exposure to cash, money market products, domestic fixed interest and a range of high yielding investments, including domestic hybrid investments, property, infrastructure and utilities securities and international fixed interest assets. In doing so, the Fund seeks to outperform the Bloomberg Ausbond Bank Bill Index over rolling three-year periods. The Fund has exposure to a range of assets including hybrid investments, floating rate credit investment, property, infrastructure and utilities securities, government bonds, corporate and high yield debt products, and cash and cash equivalents.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Yarra Income Plus Fund

Yarra Income Plus Fund Fund Commentary September 30, 2023

The Yarra Income Plus Fund returned 0.37% (net basis) over the September quarter, underperforming the Bloomberg AusBond Bank Bill Index by 71 bps.

Diversified Credit and Hybrid sleeves contributed meaningfully to performance. Strong carry, particularly in the credit sleeve underpinned strong quarterly performance. Some tightening of spreads over the quarter helped provide modest price return. The Fixed Income sleeve was weaker over the period but positive, nonetheless. Carry again proved to be a significant contributor to performance during the quarter but movement in the yield curve did have a negative impact on price performance.

Performance in the Real Assets sleeve was negative, reflecting a shift in sentiment that has caused a sell-off in the REIT sector. This was the only sleeve detracting from performance. During the quarter, weights were adjusted as we looked to reduce our position in bonds. With spreads are still attractive in hybrids, we elected to reduce our underweight position and decrease our underweight cash position as we sought other opportunities. We also selectively increased our position in REITs.

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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.
Yarra Income Plus FundJBW0016AUManaged FundsMulti-AssetMulti-Asset IncomeMulti-Asset - Multi-Asset Income IndexMulti-Asset Growth Investor Index89.11 M0.68%00.21%

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.
Yarra Income Plus Fund2.52%2.98%7.06%2.77%5.39%4.08%3.81%3.44%-1.88%-4.61%-7.84%

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.
Yarra Income Plus FundMulti-Asset - Multi-Asset Income Index-0.19%0.21%0.07%0.06%0.06%0.72.32%1.92%0.930.9

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Yarra Income Plus FundYes-https://www.yarracm.com/-

Product Due Diligence

What is Yarra Income Plus Fund

Yarra Income Plus Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - Multi-Asset 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 Yarra Income Plus Fund has Assets Under Management of 89.11 M with a management fee of 0.68%, a performance fee of 0 and a buy/sell spread fee of 0.21%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Yarra Income Plus Fund has returned 2.52% in the last month. The previous three years have returned 2.77% annualised and 3.44% each year since inception, which is when the Yarra Income Plus Fund 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 Yarra Income Plus Fund first started, the Sharpe ratio is 0.52 with an annualised volatility of 3.44%. The maximum drawdown of the investment product in the last 12 months is -1.88% and -7.84% 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 Yarra Income Plus Fund has a 12-month excess return when compared to the Multi-Asset - Multi-Asset Income Index of -0.19% and 0.21% 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. Yarra Income Plus Fund has produced Alpha over the Multi-Asset - Multi-Asset Income Index of 0.07% in the last 12 months and 0.06% since inception.

What are similar investment products?

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

What level of diversification will Yarra Income Plus Fund provide?

Yarra Income Plus Fund has a correlation coefficient of 0.9 and a beta of 0.7 when compared to the Multi-Asset - Multi-Asset 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 Yarra Income Plus Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Yarra Income Plus Fund with the Multi-Asset Growth Investor Index?

For a full quantitative report on Yarra Income Plus Fund compared to the Multi-Asset Growth Investor Index, you can click here.

Can I sort and compare the Yarra Income Plus Fund to do my own analysis?

To sort and compare the Yarra Income Plus Fund financial metrics, please refer to the table above.

Has the Yarra Income Plus Fund 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 Yarra Income Plus Fund?

If you or your self managed super fund would like to invest in the Yarra Income Plus Fund please contact via phone or via email .

How do I get in contact with the Yarra Income Plus Fund?

If you would like to get in contact with the Yarra Income Plus Fund manager, please call .

Comments from SMSF Mates

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

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Historical Performance Commentary

Performance Commentary - June 30, 2023

The Yarra Income Plus Fund returned 0.15% (net basis) over the June quarter, underperforming the Bloomberg AusBond Bank Bill Index by 75 bps. Performance in the Real Assets sleeve was positive, with a shift in sentiment offset selling in long-duration assets which helped to support the position. Diversified Credit and Hybrid sleeves also contributed meaningfully to performance. Running yield has provided a significant tailwind, comfortably offsetting a modest widening of spreads. We expect this thematic to persist for some time given the large increase in cash rates. The Fixed Income sleeve was weak over the period. Bond markets priced in another round of rate hikes across global central banks, pushing yields significantly higher.

Selling in the sleeve is making future opportunities increasingly compelling. No changes were made to the Fund’s tactical asset allocation during the quarter. We continue to hold conviction in our overweight Fixed Income position, confident that duration will come back into favour.

Performance Commentary - March 31, 2023

The Yarra Income Plus Fund returned 2.63% (net basis) over the March quarter, outperforming the Bloomberg AusBond Bank Bill Index by 184 bps.

Performance in the Real Assets sleeve was positive. A shift in sentiment led to a broad-based rally benefitting the sleeve.

Diversified Credit was also a strong contributor. Elevated levels of carry continue to underpin positive performance. Running yield remains at an attractive level, and will continue to provide strong downside protection for some time.

The Fixed Income sleeve performed well over the quarter.

Issues in the global banking sector led investors to price an impending rate cutting cycle. As such, long duration securities performed very well. Despite the rally, the yield on offer in the sleeve continues to look attractive.

No changes were made to the Fund’s tactical asset allocation during the quarter. We continue to hold conviction in our overweight Fixed Income as it seems duration has further to rally.

Performance Commentary - December 31, 2022

The Yarra Income Plus Fund returned 2.54% (net basis) over the December quarter, outperforming the Bloomberg AusBond Bank Bill Index by 180 bps. A number of changes were made to the Fund’s tactical asset allocation during the period. Early in the quarter we moved underweight Hybrids in favour of Property, Infrastructure and Utilities. The moved proved favourable as risk sentiment improved early in the quarter. Following the risk rally, we moved from overweight back to neutral Property, Infrastructure and Utilities and reduced our underweight position in cash. Performance from the Real Assets sleeve was positive over the quarter.

Weak economic data led markets participants to position for a possible central bank pivot. As such, equity markets performed well over the period. Diversified Credit also contributed positively to performance. Tightening spreads and elevated levels of carry drove strong returns. Running yield remains at high levels and is offering significant downside protection. The Fixed Income sleeve also contributed positively to performance, despite yields trading wider over the period. Offsetting weakness from wider yields was the sleeve’s running yield, which remains attractive. The Reserve Bank of Australia (RBA) raised the cash rate a cumulative 75 bps over the quarter, taking the cash rate to 3.10%. The Cash sleeve is now presenting more attractive yield; however, we still see better value in other sleeves at our disposal.

Performance Commentary - September 30, 2022

The Yarra Income Plus Fund returned -0.84% (net basis) over the September quarter, underperforming the Bloomberg AusBond Bank Bill Index by 127 bps. On a 12-month view, the Fund returned -3.79%, underperforming its benchmark by 431 bps on a net basis. We made a number of changes to the Fund’s tactical asset allocation during the quarter. We further reduced our cash allocation moving further overweight Fixed Income and Diversified Credit where outright yield have become increasingly compelling. Duration sold-off yet again leading to weak performance within the Real Assets sleeve. The sleeve underperformed the broader market during the period. Diversified Credit was a strong contributor to performance during the quarter. Spreads were relatively flat over the period, performance was instead driven by strong running yield. Wide spreads and strong underling yield continue to provide attractive carry.

Performance Commentary - August 31, 2022

The Yarra Income Plus Fund returned -0.73% (net basis) in August, underperforming the Bloomberg AusBond Bank Bill Index by 89 bps. No changes were made to the Fund’s target asset allocation during the month. We remain comfortable in our overweight to Fixed Income following the significant sell-off in duration, and remain underweight Cash given the better relative return in sleeves such as Diversified Credit. Our neutral position in Real Assets and Hybrids was unchanged.

Performance Commentary - June 30, 2022

The Yarra Income Plus Fund returned -1.08% (net basis) over the June quarter, underperforming the Bloomberg AusBond Bank Bill Index by 113 bps. On a 12-month view, the Fund returned -2.12%, underperforming its benchmark by 222 bps on a net basis. We made a number of changes to the Fund’s tactical asset allocation during the quarter. We reduced our allocation to Cash and Hybrid sleeves in favour of the longer duration Fixed Interest sleeve.

We remained neutral Real Assets and overweight Diversified Credit. The Real Assets sleeve detracted from performance. The sleeve underperformed the broader market as long duration assets were heavily sold off. Exacerbating negative returns was weakened risk sentiment. Diversified Credit also detracted from performance, with elevated investor risk aversion driving a widening in credit spreads.

With the underlying yield moving far higher and credit spreads wider, the risk-return dynamics may be looking increasingly attractive. Long duration assets sold off significantly on persistent inflation pressures and hawkish central bank commentary. As such, the Fixed Income sleeve was a large detractor from performance. The Reserve Bank of Australia (RBA) began hiking rates at its May meeting with a 25 bps rise, followed by another 50 bps in June, taking the cash rate to 0.85%. Several more hikes to follow between now and year-end appear inevitable. At this stage we still see better value across the other sleeves at the Fund’s disposal.

Performance Commentary - March 31, 2022

The Yarra Income Plus Fund returned -1.72% (net basis) over the December quarter, underperforming the Bloomberg AusBond Bank Bill Index by 173 bps. On a 12-month view, the Fund returned 1.81%, outperforming its benchmark by 177 bps on a net basis. No changes were made to the Fund’s asset allocation during the quarter.

Russia’s invasion of Ukraine added further pressure to inflationary woes. As such, the Fixed Income sleeve was the largest detractor from performance. Given how much yields have sold off, we believe the sleeve is beginning to offer some compelling value.

The Real Assets sleeve detracted from performance during the quarter, with weaker risk tolerance and rising yields weighing on performance. Real Assets tend to trade lower in the context of rising real yields which we have started to observe.

The Hybrid sleeve was slightly weaker over the quarter. Despite strong market liquidity and relatively few new deals, hybrids traded lower during the period. Outright yields in the sleeve pushed far higher as yields moved up.

Diversified Credit detracted as spreads softened. Demand for high quality corporate names remains robust, particularly at the long end where the level of outright yield is becoming increasingly compelling.

It appears increasingly likely that the Reserve Bank of Australia (RBA) will lift rates in June 2022. While this will lift the yield on offer in the cash sleeve, at this point in time we see better value across other asset classes

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