The Coolabah Long-Short Credit PIE Fund provides investors with exposure to an absolute return fixed-income strategy focused on exploiting long and short mispricings in credit markets.
The strategy targets returns above the RBNZ cash rate plus 4% to 6% pa after all fees and before tax over rolling 3 year periods . It targets volatility of less than 5% pa.
This strategy offers investor exposure primarily to senior and subordinated bonds, hybrids and derivatives, hedged to NZ dollars. The Coolabah Long-Short Credit PIE Fund targets holding the majority of its portfolio in investment-grade quality debt securities.
The strategy aims to generate high absolute returns that have low-to-no correlation with equities, fixed-rate bonds and property markets, from relatively low risk and liquid investments identified through the portfolio managers’ proven active asset-selection process. The strategy aims to reliably distribute strong quarterly income.
The portfolio managers seek to generate these returns by taking “long” or “short” positions in relation to assets which they consider are trading below or above fair value. The goal is to generate significant risk-adjusted returns, or “alpha”. The ability to go long or short, either directly or through using derivatives, means it can profit from bond price rises and price falls. Going long or short can also result in the strategy being leveraged.
| Investment Manager |
Coolabah Capital Investments (Retail) Pty Limited |
|---|---|
| Investment Policy and Objectives |
The Fund targets investment returns, after fees and before tax, of 4% to 6% per annum above the overnight interbank cash rate as published by the Reserve Bank of New Zealand, with less than 5% per annum volatility over rolling 3 year periods. |
| Investment Strategy | The Fund provides exposure to an actively managed, absolute return fixed-income strategy focused on exploiting long and short mispricings in global credit markets. The Fund currently invests in an underlying fund managed by Coolabah. The Fund targets a position of being fully hedged back to New Zealand dollars. |
| Benchmark |
Bloomberg AusBond Bank Bill Index hedged to NZD |
