Investment Grade Credit Fund

The Blue Quay Investment Grade Credit Fund (IGCF) targets a high degree of capital stability, with consistent income from a diversified portfolio of investment grade rated domestic credit assets. The product was first launched in June 2014.

The IGCF is a low volatility, defensive fund that invests in a range of high quality interest-bearing domestic floating securities. These are primarily residential mortgage backed securities (RMBS), asset backed securities (ABS) and corporate debt securities. The fund is designed to preserve investors’ capital and deliver stable, absolute returns over time in excess of the cash rate.

 

Benefits

• Stability of capital with regular quarterly income distributions

• Low volatility and low correlation to other asset classes

• Weekly liquidity for easy access to funds

• Tradeable and liquid underlying assets

 

Investment grade features

Investment Type

A unit trust, offering stable returns and access to a diversified portfolio of investment grade rated domestic credit assets (RMBS, ABS focused) with some exposure to selected corporate credits

Investment Objective

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

Expected Return

Total annual return of BBSW + 1.5% - 2.0%, net of fees

Distributions

Quarterly. The Fund will distribute total fund net income to investors on a quarterly basis

Eligible Assets

Investment Grade Residential Mortgage Backed Securities (RMBS), prime and non conforming, Asset Backed Securities (ABS), Corporate Debt Securities, Covered Bonds, Cash and Cash equivalents

Investment Horizon

2-5 years

Liquidity

Weekly

Fees

60bp per annum Management Fee

Trustee

Perpetual

Fund administration

MainstreamBPO

Custodian

JP Morgan

How to Invest