Refer below for responses to frequently asked questions relating to Yarra Capital Management's Fixed Income and Multi-Asset strategies.
Fixed Income & Multi-Asset FAQs
What is the Yarra Income Plus Fund?
The Fund is a multi-asset tactical income fund, meaning we position between asset classes based on views on the fundamental attractiveness of asset classes and the business cycle.
This Fund aims to provide regular income, with a low volatility profile and the opportunity for some capital growth over time.
What does the fund invest in?
The Fund invests in a range of Fixed Interest and Income assets and is diversified across 5 separate asset classes, Australian Fixed Income, Hybrids, Global High Yield, Cash, Infrastructure and AREITs.
How often does the fund distribute income?
The Fund distributes income quarterly and the primary aim of this fund is to generate a stable level of income for its investors
Who is the manager of my investments?
The Fund is managed by experienced portfolio managers Roy Keenan, Head of Australian Fixed Income, and Stephanie Guerra, Senior Investment Manager. Together they are supported by the strength and breadth of Australian Equities investment team, which includes credit and portfolio analysts, with an average of 14 years’ investment experience working through multiple market cycles.
What type of client would this strategy suit?
Clients seeking quarterly income, some capital growth over time, or an actively managed approach to deliver income
How do I access your strategies?
Investors can invest directly with Yarra Capital Management, or can access via their adviser and platform. Institutional investors can access our strategies directly, please contact a member of the client team to discuss your specific requirements further.
Why Yarra Capital Management?
We maintain a strong focus on the credit worthiness of the companies and the specific structures we invest in – understanding the PDS terms and structure of each security is a key strength of the team
We seek to identify value opportunities through intensive credit research between issuers, structures and the impact of regulatory environment change – not all securities are created equal
Return analysis on an after-tax basis is a key priority
What is the Yarra Enhanced Income Fund?
It is an actively managed fund providing access a diverse range of hybrid and credit securities in the Australian credit market
Provides regular income to investors, distributing quarterly and the opportunity for modest capital growth with some franking and tax deferred benefits
Provides daily liquidity to investors and provides on average investment grade exposure at all times
What are the benefits of an actively managed fund compared to investing directly?
Hybrids are complex securities that require specialist knowledge to understand the pricing impact of market movements and individual structures of the underlying securities
Provides diversification – more than just bank hybrids and access to securities that individuals can’t otherwise access directly.
Understand the changing nature of the hybrid issuance – over time the structures issued in the market can change which creates opportunities for a professional manager to make an assessment on where value lies across various issuance structures
Increasing levels of issuance requiring detailed knowledge of terms of each security to accurately assess and price the inherent risks
Hybrids market is largely a retail market and therefore provides potentially more mis-pricing opportunities for a professional manager
What type of client would the Fund suit?
Clients requiring income and seeking franking credits who have historically used direct equities
Clients who are comfortable in taking some risk, but may be looking to reduce their equity volatility in their income producing portfolio
Clients seeking an actively managed approach to investing into hybrids to manage the increasing complexity of structures of hybrid issuance
How to use within a portfolio?
Allocate to hybrids as part of the growth portion of the portfolio to complement equities as a source of regular income while reducing equity risk
How do I access your strategies?
Investors can invest directly with Yarra Capital Management, can access via their adviser and platform. Institutional investors can access the strategy directly, please contact a member of the client team to discuss your specific requirements further.
General Advice Disclaimer
Yarra Funds Management Limited (ABN 63 005 885 567, AFSL 230 251) is the issuer and responsible entity of the range of registered managed investment schemes described on this website (‘Funds’). 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 Yarra Funds Management Limited 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.