High Income Fund

The Blue Quay Investment Management High Income Fund is a low volatility income fund that invests into Australian fixed income assets primarily residential mortgage backed securities (RMBS) and asset backed securities (ABS). It is designed to deliver stable absolute returns over time.

 

Benefits

 

• Targeted return of BBSW plus 5.00%

• Stable monthly Income

• Low volatility and low correlation to other asset classes

• Fund assets are floating rate notes – no duration exposure

• Tradeable securities – NOT a mortgage fund

• No leverage

• No commercial property exposure

 

High Income Fund Features

Investment Type

A unit trust, offering high income returns and access to domestic credit assets (with a current overweight bias to RMBS and ABS securities)

Investment Objective

The Fund aims to provide capital stability and moderate income returns from a diversified portfolio of investment and non-investment grade domestic credit assets (RMBS and ABS focused, as well as corporate debt, fixed income securities, and money market securities)

Expected Return

Return BBSW + 5.0% per annum over a 2-year rolling period (after fees)

Coupon

Monthly Coupon of BBSW + 3.0%

Distributions

The Fund intends to distribute the Benchmark amount monthly (with the option to reinvest) to the extent of any Fund net income. Any income or net capital gains received in the Fund in excess of the monthly Benchmark will be paid out on a semi-annual basis (net of fees) Principal repayments from the Fund’s assets are reinvested in the portfolio.

Eligible Assets

Residential Mortgage Backed Securities (RMBS) and Asset Backed Securities (ABS) (non-commercial), Corporate Debt Securities (bonds and loans), and Cash and Cash Equivalents

Investment Horizon

2-5 years

Pricing

Monthly

Liquidity

90 Days

Benchmark

BBSW + 3.0% per annum

Fees

Investment management fee of 1.00% Performance fee 20% of any excess return over the Benchmark (BBSW + 3.0%)

Trustee

Perpetual

Fund administration

MainstreamBPO

Custodian

JP Morgan

How to Invest