Asset Class
Fixed Income
Funds under management
$61.1 million
Fee
0.72%
Objective
Outperformance
Product Type
Managed Fund

The Fund

This fund invests in US corporate debt securities: these are non-government bonds which pay a set interest rate for a fixed term, after which the principal is expected to be repaid. This type of investment is considered ‘below investment grade’ as it has a higher level of risk than investment grade securities. The fund recommends investors have a minimum timeframe of three years.

 

The Team

The fund is managed by Tom Flannery – Managing Director of Credit Suisse in the Asset Management business based in New York – and an investment team at Bentham Asset Management led by Managing Director and Head Portfolio Manager, Richard Quin (interviewed here by brightday). Before Bentham Asset Management was established, the team worked together at Credit Suisse.

The Performance

Figures as at 31.03.16. Benchmark: Bloomberg AusBond Composite 0+ Yr Index

brightday determines the benchmark each fund is measured against. There is only one benchmark for each asset class.

1y3y5y
Performance-1.10%4.80%8.00%
Benchmark1.97%5.50%6.63%
Outperformance-3.07%-0.70%1.37%

The Style

Individual investments are selected using a bottom-up approach, focusing on the characteristics of each issuer. To manage risk within the portfolio, diversification is key as the fund must invest in at least 50 issuers. There are also maximum limits on investing in a single issuer and industry.