| Report Date | 06 September 2019 |
| Manager | Spectrum Asset Management Limited |
| Fund Name | Spectrum Strategic Income Fund |
| Strategy | Credit |
| Latest Return Date | July 2019 |
| Latest Return | 0.71% |
| Latest 6 Months | 3.88% |
| Latest 12 Months | 5.60% |
| Latest 24 Months (pa) | 4.63% |
| Annualised Since Inception | 8.02% |
| Inception Date | 31 May 2009 |
| FUM (millions) | AU$70.8 |
| 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 +0.71% in July, taking annualised performance since inception to +8.02%. The Fund's Sharpe and Sortino ratios, 1.72 and 4.72 respectively, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility.
The Fund's top 10 holdings at the end of the month were National Australia Bank (6.4% of the portfolio), DBS Group Holdings (5.7%), AAI Limited (4.9%), Suncorp Metway (4.3%), Toyota Finance Australia (4.2%), Multiplex Sites Trust (3.6%), UBS AG Australian (3.6%), Shinhan Bank (3.2%) and United Overseas Bank (2.8%). The Fund held 11.2% of the portfolio in cash.
Spectrum's view is that trade tensions are shaping the future direction of rates in the near term which they believe is evident in the RBA's recent rate cut and their commentary about the next possible cut. |
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