Switzer Higher Yield fund relaunches as ETF
The Switzer Higher Yield fund has launched on the Chi-X Australia stock exchange as an exchange traded fund, managed by Coolabah Capital Investments.
The fund aimed to provide investors with an attractive cash yield and low capital volatility by investing in fixed income securities.
Marty Switzer, chief executive of Contango Asset Management, said the firm had decided to partner with active credit manager Coolabah to relaunch the fund as an exchange traded vehicle following investor demand.
The COVID-19 pandemic and resulting stockmarket volatility had re-focused people’s minds, he said, on the importance of diversification and including fixed income in a portfolio.
Coolabah portfolio management director, Ying Yi Ann Cheng, said: “The Switzer Higher Yield fund will actively invest in a diversified portfolio of Australian deposits, investment grade floating-rate notes and hybrid securities, targeting a weighted-average credit rating of ‘A-’, and near-zero interest rate duration risk.
color:#404040">
“Rather than chasing yield through assuming greater credit default risk, interest rate risk, or liquidity risk, Coolabah focuses on augmenting the portfolio’s yields through actively selecting cheap bonds that can potentially provide future capital gains.”
color:#404040">
AUTHOR
Laura Dew
Recommended for you
Schroders has appointed a new chief executive as Simon Doyle steps down from the asset manager after 22 years.
Distribution of private credit funds through advised channels to retail investors will be an ASIC priority for 2026 as it releases the results of its thematic fund surveillance and guidance for research houses.
State Street Investment Management has taken a minority stake in private market secondaries manager Coller Capital with the pair set to collaborate on broaden each firm’s reach and drive innovation.
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
