Switzer Higher Yield fund relaunches as ETF

ETF/bonds/fixed-income/switzer/chi-x-australia/

5 January 2021
| By Laura Dew |
image
image
expand image

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">

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS