More Than Your Daily Bread

Superior income opportunities through credit and hybrid securities.

The Yarra Enhanced Income Fund invests in high yielding credit and hybrid securities. It aims to deliver better returns than traditional cash management and fixed income investments over the medium to long term. As part of a diversified portfolio, it provides essential diversification to traditional asset classes.

Regular, stable income

Enjoy monthly distributions with relatively low capital volatility, low or no interest rate duration, and modest capital growth with some franking credits.

Highly diverse

The Fund’s exposure to more than 100 securities provides defensive protection against more traditional asset classes and helps mitigate downside risk.

Deeply researched

Our large investment team focuses exclusively on Australian fixed income. This depth of insight gives us an edge when building conviction in the best-returning issuers and sectors.

UNIT PRICE 06 December 2024

entry

1.0184

exit

CHART
Gross Performance
31 October 2024
% per month % per annum since inception
%p.a1
1 3 1 3 5 10
Yarra Enhanced Income Strategy 0.77% 2.26% 10.92% 6.19% 5.23% 5.72% 6.25%
Yarra Enhanced Income Strategy (incl. franking) 0.79% 2.30% 11.07% 6.33% 5.31% 6.04% 6.84%
RBA Cash Rate 0.36% 1.08% 4.36% 2.92% 1.85% 1.75% 3.28%
Relative Return 0.43% 1.22% 6.71% 3.41% 3.46% 4.28% 3.56%
CHART
Net Performance
31 October 2024
% per month % per annum since inception
%p.a1
1 3 1 3 5 10
Yarra Enhanced Income Fund 0.73% 2.11% 10.31% 5.61% 4.62% 5.00% 5.47%
Yarra Enhanced Income Fund (incl. franking) 0.75% 2.16% 10.46% 5.74% 4.70% 5.32% 6.05%
RBA Cash Rate 0.36% 1.08% 4.36% 2.92% 1.85% 1.75% 3.28%
Relative Return 0.38% 1.08% 6.10% 2.82% 2.85% 3.56% 2.77%

How we invest

To deliver consistent income, we hold a blend of high yielding fixed income and hybrid securities. By assessing the relative value between securities, we can take advantage of market inefficiencies to capture attractive risk adjusted returns across cycles. The Fund has consistently outperformed its benchmark, providing investors with regular income and the potential for capital growth and franking credits.

In-depth analysis

To systematically uncover and exploit sources of value, we apply sophisticated quantitative and qualitative analysis across an investable universe of more than 5,000 securities.

Robust risk controls

We complete a relative value analysis of every investment. Our credit risk modelling means we’re continuously assessing the risk versus return to appropriately size our positions.

A proven process

Our fixed income team employs a disciplined and repeatable investment process, incorporating ESG assessment and backed by leading technologies and proprietary tools.

Investment summary

Inception Date

June 2003

Unit Pricing

Daily

Investment Horizon

Medium term 3-5 years

Distribution Frequency

Monthly

Minimum Initial Investment

$10,000

No. of Holdings

Generally 100-140

Management Fees

0.55% p.a.

APIR Code

JBW0018AU

Buy/Sell Spread

+/- 0.10%

ARSN Code

104 463 336

Investment summary

Inception Date

June 2003

Management Fees

By negotiation

Investment Horizon

Medium term 3-5 years

No. of Holdings

Generally 100-140

Co-Head of Australian Fixed Income

Roy Keenan

Head of Australian Credit Research

Phil Strano

Our Enhanced Income Fund has outperformed the benchmark since inception in 1999.

Managed by Yarra since 2018, this strategy is available through the UBS Australian Small Companies Fund
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