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.
• 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
A unit trust, offering high income returns and access to domestic credit assets (with a current overweight bias to RMBS and ABS securities)
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)
Return BBSW + 5.0% per annum over a 2-year rolling period (after fees)
Monthly Coupon of BBSW + 3.0%
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.
Residential Mortgage Backed Securities (RMBS) and Asset Backed Securities (ABS) (non-commercial), Corporate Debt Securities (bonds and loans), and Cash and Cash Equivalents. Additional information on fund investments is available to investors on request from the Investment Manager.
BBSW + 3.0% per annum
Investment management fee of 1.00% Performance fee 20% of any excess return over the Benchmark (BBSW + 3.0%)