| Report Date | 31 July 2015 |
| Manager | Supervised Investments Australia Ltd |
| Fund Name | Supervised High Yield Fund |
| Strategy | Fixed Income |
| Latest Return Date | June 2015 |
| Latest Return | 0.21% |
| Latest 6 Months | 2.86% |
| Latest 12 Months | 6.16% |
| Latest 24 Months | 14.01% |
| Annualised Since Inception | 10.12% |
| Inception Date | 01 April 2009 |
| FUM (millions) | AU$20 |
| Fund Overview | The Supervised High Yield Fund is an AUD denominated alternative income fund which invests only in debt securities. The investment objective of the fund is to outperform a benchmark of 1.5% above the RBA cash rate, whilst trying to minimise the risk of permanent loss of capital. The fund will invest in all forms of marketable floating and fixed income debt securities, such as asset backed debt securities, residential mortgage backed securities, corporate debt, regional and sovereign debt securities, debt/equity hybrid securities, equities and currencies. All these investments will be either listed or traded in a market where prices can be independently verified.
The fund may also invest in interest rate swaps, options over authorized investments and exchange traded futures contracts. All these will be either listed or traded in a market where they can be independently valued. Fundamental to the investment procedure is the tenet that no debt security will qualify for investment unless it can repay 100% of its principal and interest in a worst case economic scenario. |
| Manager Comments | Supervised High Yield Fund rose 0.21% in market conditions which were marked by high levels of uncertainty and volatile debt and equity markets. Since inception, the Fund has an annual return of 10.12% p.a. During the same time frame the RBA Cash Rate returned 3.43%. The Fund has achieved this performance with a relatively low volatility of 2.09% (RBA Cash Rate 0.25%) to give a Sharpe and Sortino Ratio of 3.10 and 34.52 respectively.
More than half of the portfolio's composition was in Residential Mortgage-Backed Securities (RMBS) at 65.50%. The rest of the portfolio was divided in the following sectors: US Corporate Loans at 21.70%, Cash at 8.70% and AUD Corporate Loans at 4.10%.
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