The Yarra Australian Bond Fund employs a relative value approach that focuses on providing investors with consistent positive returns no matter the conditions.
Through its ‘Top-down’ value-adding process, merged with ‘bottom-up’ quantitative portfolio construction and credit process, the Fund invests in a diversified portfolio of investment grade Australian fixed income assets, that aims to deliver an active return for a competitive fee.
Our goal is to achieve higher income than the index. To capture this excess alpha, we use our proprietary system to analyse the relative value between ~3,000 Australian interest rate structures, bonds and sectors. This investment process delivers a universe of opportunities that are interrogated by our portfolio managers who apply their investment methodology, experience and economic statistics to reinforce their conviction and identify the best returning securities – those that outperform the others.
Unlike traditional duration and credit spread managers, we don’t have to rely on picking market direction to capture returns. Instead, we look for the best relative value between securities and sectors that will deliver consistent positive returns for investors.
The Fund is positively correlated with equities when they are rising and negatively correlated when they are falling. This allows us to consistently deliver a positive return no matter the market conditions – offering the diversification investors expect from a fixed income investment. The Fund consists primarily of Australian investment grade securities (securities with a BBB- rating or above) which helps mitigate risk.
Our mission to provide a core fixed income allocation in your portfolio that provides returns with no surprises. That‘s how we see our mission, that’s who we are.
We have the tools to generate alpha in all conditions because we keep our positions appropriately sized and don’t focus everything on one position. Relative value helps dictate how and where we hold positions time after time.
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To outperform the Benchmark over any three-year rolling period, before fees, expenses and taxes
Bloomberg AusBond Composite 0 + YR Index
Typical number of securities
70 – 130
Recommended investment timeframe
Net returns as at 28 February 2023
|Yarra Australian Bond Fund*#||-1.38||-0.40||-6.50||-3.44||0.86||2.47||4.79|
|Bloomberg AusBond Composite 0+YR Index||-1.32||-0.69||-6.37||-3.44||0.82||2.43||4.76|
# Effective 12 April 2021, Nikko AM Australia became part of the Yarra Capital Management Group. Further information in relation to the transaction can be found here. Returns prior to this date relate to the Nikko AM Australian Bond Fund.
* The returns shown are post fees, pre tax using redemption prices and assume reinvestment of distributions. Excess return is the difference between the Fund’s net return and its benchmark. Past performance is not a reliable indicator of future performance.
Latest investment commentary – February 2023
Open To New Investors: Yes
ARSN: 098 736 255
Initial Minimum: 10,000.00AUD
Distribution Frequency: Quarterly
Management cost (ICR) (p.a.): 0.30%
Buy/sell spread: +/-0.05%
Platforms for this fund
Lonsec¹: ‘Highly Recommended’
Morningstar²: Bronze Morningstar Rating™
These reports are available to licensed financial advisers on request. Please contact a member of the Firm’s Client Team.
Product Disclosure Statement
Application Booklet (for initial investments)
Additional Investment Form (for additional investments)
Target Market Determination
Institutional investors wanting further information on the Yarra Australian Bond Strategy should contact a member of the Firm’s Client Team.
Important Additional Information
Important Updates (none at this time)
¹ The Lonsec Rating (Yarra Australian Bond Fund – August 2021) presented on this website is published by Lonsec Research Pty Ltd (ABN 11 151 658 561 AFSL 421 445). The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Yarra Capital Management product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to Lonsec’s website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings.
² The Morningstar Analyst Rating™ for Yarra Australian Bond Fund is ‘Bronze’ as of January 2021.
© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN 95 090 665 544, AFSL 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at http://www.morningstar.com.au/s/fsg.pdf and http://www.morningstar.com.au/s/fapds.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
³ The Zenith Investment Partners (ABN 27 103 132 672, AFSLe 226872) (“Zenith”) rating (assigned: Yarra Australian Bond Fund – June 2021) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.
Yarra Funds Management Limited (ABN 63 005 885 567, AFSL 230 251) (‘YFML’) is the issuer and responsible entity of the range of registered managed investment schemes described on this website (‘Funds’). YFML is not licensed to provide personal financial product advice to retail clients. The information provided on this website contains general financial product advice only. The advice has been prepared without taking into account your personal objectives, financial situation or particular needs. Therefore, before acting on any advice, you should consider the appropriateness of the advice in light of your own or your client’s objectives, financial situation or needs. Prior to investing in any of the Funds, you should obtain and consider the product disclosure statement (‘PDS’) for the relevant Fund by contacting our Investor Services team on 1800 034 494 or from our website at www.yarracm.com/pdsupdates. The information set out in this website has been prepared in good faith and while YFML and its related bodies corporate (together, the “Yarra Capital Management Group”) reasonably believe the information and opinions to be current, accurate, or reasonably held at the time of publication, to the maximum extent permitted by law, the Yarra Capital Management Group: (a) makes no warranty as to the content’s accuracy or reliability; and (b) accepts no liability for any direct or indirect loss or damage arising from any errors, omissions, or information that is not up to date.
Before using any of the financial services offered by Yarra Funds Management Limited, you should read our Financial Services Guide (FSG). This has been prepared to assist you in deciding to use any of the financial services offered by us. We are required to provide you with an FSG if we provide certain financial services to you as a retail client.