Attractive Cash Yield Objective
The Switzer Higher Yield Fund seeks to offer attractive cash yield whilst minimising the risk of capital loss. The objective of the Fund is to deliver total returns after fees and expenses which are 1.5% to 3.0% greater than the RBA Cash Rate on a rolling 12-month basis.
The Fund enables investors to access income from an asset class which most retail investors overlook. Fixed income securities are generally regarded as defensive investments that exhibit lower volatility in their capital value over time relative to higher risk asset classes including equities. By blending lower risk, fixed income securities with equities and other portfolio assets, investors may reduce their overall portfolio risk.
Low Capital Volatility
Debt is higher up the corporate structure than equity, which means interest payments to debt holders are required to be paid before dividends are paid to shareholders. Because of this, debt securities are typically less volatile than equities.
Track Your Investment in Real-Time
The Fund’s Net Asset Value (NAV) per unit will be published on our website daily. Investors will also be able to see the prices at which other investors are prepared to exchange units when units in the Fund are quoted on the exchange.
The Fund will generally pay quarterly distributions in January, April, July and October, sourced from a portfolio of Australian cash, bonds and hybrid securities. You can choose to receive your distributions as cash or to have them automatically reinvested into additional units in the Fund.
Low Management Fee
The management fee is 0.70% p.a. including GST net of RITC. The Management Fee covers the management of the Fund and its assets, and Fund outgoings including administration, accounting, audit and registry fees and expenses. There are no establishment or contribution fees. Investors may incur brokerage costs in purchasing or selling units on the exchange.
Expert Investment Management
The Fund provides access to Coolabah Capital Investments (Coolabah), a specialist fixed income manager with extensive expertise in the fixed income asset class. Coolabah was founded by Christopher Joye, one of Australia’s leading economists, policy advisors and fund managers. Coolabah’s edge is in alpha generation in liquid, high-grade credit. This is in contrast to traditional fixed-income managers that drive returns through adding more interest rate duration, credit default, and/or illiquidity risk. This alpha generation is a function of the world-class analytical insights rendered by Coolabah’s extremely well-resourced team.
Invest Your Way
The fund is a multi-distributed managed fund, meaning investors can buy and sell units either directly with Switzer Asset Management or by purchasing units via a broker, once the fund is quoted. Investors who enter the Fund via the exchange can dispose of their units directly with Switzer Asset Management and vice versa. Investors who choose to hold their investment on the CHESS register will have the benefit of CHESS holding statements showing the numbers of units that they own.