| Report Date | 15 April 2019 |
| Manager | Spectrum Asset Management Limited |
| Fund Name | Spectrum Strategic Income Fund |
| Strategy | Credit |
| Latest Return Date | March 2019 |
| Latest Return | 0.74% |
| Latest 6 Months | 2.36% |
| Latest 12 Months | 4.45% |
| Latest 24 Months | 8.75% |
| Annualised Since Inception | 8.07% |
| Inception Date | 31 May 2009 |
| FUM (millions) | AU$73 |
| Fund Overview | The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes. |
| Manager Comments | The Spectrum Strategic Income Fund rose +0.74% in March, taking annualised performance since inception in June 2009 to +8.07% with an annualised volatility of 3.07%. The Fund's Sharpe and Sortino ratios since inception, 1.69 and 4.64 respectively, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst ensuring investors' capital is protected against the market's downside volatility.
Spectrum continue to tweak the portfolio to take advantage of expected falling A$ credit spreads while maintaining an average credit rating of 'A-'. In their view, a jump in perceived global geopolitical risk is a key risk as they believe the market remains complacent on this matter at present. They also continue to shelter the portfolio from potential fallout from further declines in the local residential property market by diversifying away from direct and indirect exposure to that sector. |
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