Smarter Money Long-Short Credit Assisted targets generating absolute returns of 4% to 6% p.a. above the RBA cash rate after management fees and performance related fees over rolling 3 year periods with less than 5% p.a. volatility, and low to no correlation with equities, fixed-rate bonds, and property markets. An active, diversified portfolio of Australian deposits, investment grade floating-rate notes and hybrid securities, and derivatives issued by Australian entities domestically, exploiting inefficiencies in the short-term yield curve by using a highly contrarian and dynamic asset-allocation strategy between cash, derivatives, and floating-rate notes, without taking capital risks. The fund can also invest in these types of securities when they are issued overseas, or by overseas entities (into the Australian market or offshore) with the currency risk fully hedged. The fund does not invest in fixed-rate bonds (unless interest rate risk is hedged), sub-investment grade bonds, direct loans, equities, capital notes, or take currency risk.
The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended September with an annualised yield to call/maturity of 7.85% pa (assuming current funding costs), a weighted-average credit rating of A+, and a portfolio weighted average MSCI ESG rating of AA. In September, LSCF returned 0.84% gross (0.69% net), outperforming the RBA Overnight Cash Rate (0.32%), the AusBond Bank Bill Index (0.34%), and the AusBond Credit FRN Index (0.37%). Over the previous 12 months, LSCF returned 13.31% pa gross (10.34% pa net), outperforming the RBA Overnight Cash Rate (3.47% pa), the AusBond Bank Bill Index (3.56% pa), and the AusBond Credit FRN Index (4.63% pa).
Since the inception of LSCF 6.1 years ago in September 2017, it has returned 5.88% pa gross (3.86% pa net), outperforming the RBA Overnight Cash Rate (1.22% pa), the AusBond Bank Bill Index (1.38% pa), and the AusBond Credit FRN Index (2.16% pa). While LSCF’s return volatility since inception has been low at around 3.49% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
What is Smarter Money Long-Short Credit Smarter Money Long-Short Credit is an Managed Funds investment product that is benchmarked against Global High Yield Credit Hdg Index and sits inside the Fixed Income - High Yield 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 Smarter Money Long-Short Credit has Assets Under Management of 574.75 M with a management fee of 0.75%, a performance fee of 0 and a buy/sell spread fee of 0.025%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Smarter Money Long-Short Credit has returned 0.75% in the last month. The previous three years have returned 5.43% annualised and 5.09% each year since inception, which is when the Smarter Money Long-Short Credit 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 Smarter Money Long-Short Credit first started, the Sharpe ratio is NA with an annualised volatility of 5.09%. The maximum drawdown of the investment product in the last 12 months is 0% and -9.59% 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 Smarter Money Long-Short Credit has a 12-month excess return when compared to the Fixed Income - High Yield Credit Index of -0.91% and -1.81% 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. Smarter Money Long-Short Credit has produced Alpha over the Fixed Income - High Yield Credit Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - High Yield Credit Index category, you can click here for the Peer Investment Report.
What level of diversification will Smarter Money Long-Short Credit provide?
Smarter Money Long-Short Credit has a correlation coefficient of 0.58 and a beta of 0.31 when compared to the Fixed Income - High Yield 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 Smarter Money Long-Short Credit and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Smarter Money Long-Short Credit with the Global High Yield Credit Hdg Index?
For a full quantitative report on Smarter Money Long-Short Credit compared to the Global High Yield Credit Hdg Index, you can click here.
Can I sort and compare the Smarter Money Long-Short Credit to do my own analysis?
To sort and compare the Smarter Money Long-Short Credit financial metrics, please refer to the table above.
Has the Smarter Money Long-Short Credit 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 Smarter Money Long-Short Credit?
How do I get in contact with the Smarter Money Long-Short Credit?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Smarter Money Long-Short Credit. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended August with an annualised yield to call/maturity of 7.19% pa (assuming current funding costs), a weighted-average credit rating of A, and a portfolio weighted average MSCI ESG rating of AA. In August, LSCF returned 1.10% gross (0.87% net), outperforming the RBA Overnight Cash Rate (0.34%), the AusBond Bank Bill Index (0.37%), and the AusBond Credit FRN Index (0.46%). Over the previous 12 months, LSCF returned 12.14% pa gross (9.28% pa net), outperforming the RBA Overnight Cash Rate (3.33% pa), the AusBond Bank Bill Index (3.37% pa), and the AusBond Credit FRN Index (4.38% pa).
Since the inception of LSCF 6 years ago in September 2017, it has returned 5.82% pa gross (3.80% pa net), outperforming the RBA Overnight Cash Rate (1.18% pa), the AusBond Bank Bill Index (1.35% pa), and the AusBond Credit FRN Index (2.13% pa). While LSCF’s return volatility since inception has been low at around 3.51% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - July 31, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended July with an annualised yield to call/maturity of 7.56% pa (assuming current funding costs), a weighted-average credit rating of A+, and a portfolio weighted average MSCI ESG rating of AA. In July, LSCF returned 2.20% gross (1.76% net), outperforming the RBA Overnight Cash Rate (0.34%), the AusBond Bank Bill Index (0.37%), and the AusBond Credit FRN Index (0.46%). Over the previous 12 months, LSCF returned 11.27% pa gross (8.59% pa net), outperforming the RBA Overnight Cash Rate (3.14% pa), the AusBond Bank Bill Index (3.15% pa), and the AusBond Credit FRN Index (4.26% pa).
Since the inception of LSCF 5.9 years ago in September 2017, it has returned 5.71% pa gross (3.70% pa net), outperforming the RBA Overnight Cash Rate (1.14% pa), the AusBond Bank Bill Index (1.30% pa), and the AusBond Credit FRN Index (2.08% pa).
While LSCF’s return volatility since inception has been low at around 3.53% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - June 30, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended June with an annualised yield to call/maturity of 7.89% pa (assuming current funding costs), a weighted-average credit rating of A, and a portfolio weighted average MSCI ESG rating of AA. In June, LSCF returned 2.04% gross (1.64% net), outperforming the AusBond Bank Bill Index (0.30%), the RBA Overnight Cash Rate (0.32%), and the AusBond Credit FRN Index (0.41%). Over the previous 12 months, LSCF returned 10.43% pa gross (8.17% pa net), outperforming the RBA Overnight Cash Rate (2.89% pa), the AusBond Bank Bill Index (2.89% pa), and the AusBond Credit FRN Index (4.03% pa).
Since the inception of LSCF 5.8 years ago in September 2017, it has returned 5.40% pa gross (3.45% pa net), outperforming the RBA Overnight Cash Rate (1.10% pa), the AusBond Bank Bill Index (1.26% pa), and the AusBond Credit FRN Index (2.03% pa). While LSCF’s return volatility since inception has been low at around 3.55% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - May 31, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended May with an annualised yield to call/maturity of 7.98% pa (assuming current funding costs), a weighted-average credit rating of A, and a portfolio weighted average MSCI ESG rating of A. In May, LSCF returned 0.89% gross (0.31% net), compared to the AusBond Bank Bill Index (0.29%), the RBA Overnight Cash Rate (0.34%), and the AusBond Credit FRN Index (0.34%). Over the previous 6 months, LSCF returned 7.61% gross (6.29% net), outperforming the AusBond Bank Bill Index (1.65%), the RBA Overnight Cash Rate (1.67%), and the AusBond Credit FRN Index (2.27%).
Since the inception of LSCF 5.7 years ago in September 2017, it has returned 5.10% pa gross (3.21% pa net), outperforming the RBA Overnight Cash Rate (1.06% pa), the AusBond Bank Bill Index (1.22% pa), and the AusBond Credit FRN Index (1.99% pa). While LSCF’s return volatility since inception has been low at around 3.57% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - March 31, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended April with an annualised yield to call/maturity of 7.34% pa (assuming current funding costs), a weighted-average credit rating of A+, and a portfolio weighted average MSCI ESG rating of A. In April, LSCF returned 2.52% gross (2.18% net), outperforming the RBA Overnight Cash Rate (0.27%), the AusBond Bank Bill Index (0.30%), and the AusBond Credit FRN Index (0.46%). Over the previous 6 months, LSCF returned 10.00% gross (9.19% net), outperforming the RBA Overnight Cash Rate (1.56%), the AusBond Bank Bill Index (1.60%), and the AusBond Credit FRN Index (2.36%).
Since the inception of LSCF 5.7 years ago in September 2017, it has returned 5.01% pa gross (3.20% pa net), outperforming the RBA Overnight Cash Rate (1.01% pa), the AusBond Bank Bill Index (1.19% pa), and the AusBond Credit FRN Index (1.96% pa). While LSCF’s return volatility since inception has been low at around 3.60% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - February 28, 2023 The zero-duration daily liquidity Long-Short Credit Fund (LSCF) ended February with a yield to call/maturity of 8.50% (assuming current funding costs), a weighted-average credit rating of AA-, and a portfolio weighted average MSCI ESG rating of A. In February, LSCF returned 2.17% gross (2.09% net), outperforming the AusBond Composite Bond Index (-1.32%), the AusBond Bank Bill Index (0.24%), the RBA Overnight Cash Rate (0.25%), and the AusBond Credit FRN Index (0.43%). Over the previous 3 months, LSCF returned 4.98% gross (4.72% net), outperforming the AusBond Composite Bond Index (-0.69%), the AusBond Bank Bill Index (0.76%), the RBA Overnight Cash Rate (0.76%), and the AusBond Credit FRN Index (1.20%).
Since the inception of LSCF 5.5 years ago in September 2017, it has returned 4.87% pa gross (3.08% pa net), outperforming the RBA Overnight Cash Rate (0.94% pa), the AusBond Composite Bond Index (0.95% pa), the AusBond Bank Bill Index (1.12% pa), and the AusBond Credit FRN Index (1.88% pa). While LSCF’s return volatility since inception has been low at around 3.48% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
Performance Commentary - January 31, 2023 The zero-duration and daily liquidity Long-Short Credit Fund (LSCF) ended January with a yield to call/maturity of 8.81% (assuming current funding costs), a weighted-average credit rating of AA-, and a portfolio weighted average MSCI ESG rating of A.
In January, LSCF returned 1.03% gross (0.94% net), compared to the RBA Overnight Cash Rate (0.27%), the AusBond Bank Bill Index (0.27%), the AusBond Credit FRN Index (0.42%), and the AusBond Composite Bond Index (2.76%). Over the previous 3 months, LSCF returned 5.96% gross (5.70% net), outperforming the RBA Overnight Cash Rate (0.74%), the AusBond Bank Bill Index (0.77%), the AusBond Credit FRN Index (1.19%), and the AusBond Composite Bond Index (2.20%). Since the inception of LSCF 5.4 years ago in September 2017, it has returned 4.52% pa gross (2.73% pa net), outperforming the RBA Overnight Cash Rate (0.91% pa), the AusBond Bank Bill Index (1.09% pa), the AusBond Composite Bond Index (1.21% pa), and the AusBond Credit FRN Index (1.83% pa). While LSCF’s return volatility since inception has been low at around 3.47% pa (measured using daily returns), as a daily liquidity product with assets that are marked-to-market using executable prices, volatility does exist. This contrasts with illiquid credit (eg, loans and high yield bonds) wherein assets that have very high risk can appear to have remarkably low volatility, which is, in fact, just a mirage explained by the inability to properly value these assets using executable prices.
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