Coolabah Capital launches second active fund on Cboe
Coolabah Capital Investments has launched its second fund on Cboe, offering an actively managed floating-rate solution that adds value through exploiting mispricings in Australian and global fixed-income markets.
The Coolabah Short Term Income Fund (Managed Fund) will be capturing opportunities in cash and bond markets to generate daily liquidity returns that seeks to exceed a target of the RBA cash rate plus 1.5 per cent to 3 per cent per annum after all fees with an average A credit rating and relatively low interest rate duration risk.
The firm’s chief operating officer, Luke Bouris, highlighted it was a useful solution for advisers and individual investors.
“We’re excited to grow our ETP lineup with this new solution and provide investors with the opportunity for income and superior risk-adjusted returns in the short duration fixed-interest sector,” Bouris said.
“The Coolabah Short Term Income Fund (Managed Fund) (FRNS) can be a useful solution for advisers and individual investors alike to identify, and participate in, income-generating opportunities from around the world.”
Emma Quinn, president of Cboe Australia, added: “As an advocate and champion of the global ETP industry, we are proud to welcome the latest fund issued by Coolabah onto Cboe Australia.
“Coolabah Capital Investments are a leading global active credit manager and it’s an honour to be selected as their venue of choice. We look forward to a collaborative partnership over the years ahead and providing the exceptional service and support that every issuer deserves.”
Coolabah’s first fund on Cboe, the Coolabah Active Composite Bond Fund, seeks to deliver superior risk-adjusted returns to the Bloomberg AusBond Composite Bond Index through harnessing Coolabah’s active credit alpha style that focusses on systematically exploiting mispricings to generate capital gains in addition to yield.
It provides exposure to a diversified portfolio of cash securities and bonds, including government bonds, bank bonds, corporate bonds and asset-backed securities and residential-mortgage backed securities with an average target credit rating of A.
The fund was previously an institutional strategy for super funds that was not available to the public before it was made available on Cboe.
AUTHOR
Rhea Nath
Recommended for you
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
Research by Morningstar has found fixed income funds are bucking a general trend around managed fund fee dispersion with a smaller fee dispersion compared to equity ones.
As investors seek to diversify their portfolios, the naming of bond labels has broadened out to include green, social and impact bonds, according to the annual RIAA report.
