Hybrid Income Fund
Hybrid Income Fund Information
The Hybrid Income Fund strategy (“Strategy”) was established in September 2015.
Hybrid Income Fund (“HIF” or the “Fund”) is actively managed and diversified with a core focus on instruments issued by Australian APRA-regulated issuers, including include hybrid securities and subordinated bonds. Notwithstanding this core focus, the portfolio may also include AUD denominated capital instruments issued by RBNZ-regulated issuers, senior bonds as well as cash.
Fund Objective
The Fund aims to provide returns that exceed the hybrid benchmark (Solactive Australian Hybrid Securities Index) on a net basis over the suggested investment timeframe (five+ years).
The return objective is not a forecast. The Fund may not be successful in meeting its objective. Returns are not guaranteed.
HIF Snapshot
Entry Unit Price (18 October 2024): $1.0708 (ex-distribution for September)
Exit Unit Price (18 October 2024): $1.0697 (ex-distribution for September)
Unit Pricing: Daily
Applications: Daily
Redemptions: Daily
Distributions: Monthly
APIR Code: EVO3184AU
Management Fees: 0.55% p.a. (excluding GST) of NAV.
Performance Fees: Zero.
See HIF PDS for details.
HIF Performance Table: 30 September 2024
| 1 Month |
3 Months |
6 Months |
1 Year |
3 Years |
5 Years |
SI (Sep 15) |
|
|
HYBRID INCOME FUND STRATEGY |
0.76% |
2.03% |
3.93% |
8.23% |
6.11% |
5.13% |
6.38% |
|
Hybrid Benchmark – Solactive (1) |
1.00% |
2.09% |
3.55% |
6.56% |
4.51% |
3.85% |
4.86% |
|
RBA Cash Rate |
0.36% |
1.09% |
2.19% |
4.41% |
2.85% |
1.84% |
1.71% |
Disclaimer: The performance table above represents the Hybrid Income Fund Strategy (“Strategy”). Performance of the Strategy is reported net of all fees and assumes reinvestment of distributions. The Strategy commenced in September 2015 and has been continuously operated with identical investment parameters and processes by its portfolio manager, Nicholas Chaplin. The Strategy began in 2015 as the Paraclete Investment Fund until June 2022. The Hybrid Income Fund commenced in June 2022 operating under Evolution Trustees as trustee. Investment management services were novated to Seed Funds Management in March 2024. Performance figures for the Strategy have been reviewed to March 2024 in accordance with ASRS 4400 “Agreed-Upon Procedures Engagements” by Hall Chadwick Corporate (NSW) Limited. 1) Solactive Australian Hybrid Securities Index (Net).
The Hybrid Market
The listed hybrid market includes issues totalling approximately $45 billion across a broad range of financial and corporate issuers. In focusing on the financial issuers in this market, over 90% of listed hybrid issuers will be available for investment. Additional diversity will be achieved via investment in senior bonds, hybrid capital issues and subordinated bonds issued by banks, insurers and other financial entities, and cash.
Investment Style & Approach
The Investment Manager intends to apply a tactical approach in terms of which securities it invests in and the timing of such investments with the aim of delivering investors with a robust ongoing risk-adjusted yield through market and interest rate cycles.
The investment manager will:
- manage interest rate risk via a portfolio that holds primarily floating rate instruments;
- provide portfolio diversity by security type, credit risk, duration and issuer;
- aim to distribute franking credits associated with the Fund’s holdings of franked securities;
- aim to distribute regular income; and
- ensure the portfolio has no exposure to foreign currencies.
Expert Management
Access to highly skilled specialist management, with extensive experience in regulated capital products including hybrids, subordinated debt, and mutual equity.
Senior Portfolio Manager & Director
Nicholas Chaplin is an authority in the Hybrid and capital issuance market having structured, originated, distributed, and educated on many issues since 1998.
Over his career he has originated over $200 billion in hybrid & capital issues. From 2009 to 2021, Nick was Head of Hybrid & Structured Capital at NAB and prior to that he was Head of Hybrid Origination at Westpac.
Portfolio Manager & Chair of Risk & Investment Committee
John Corr has worked in the finance industry for 40 years and is a highly regarded authority in portfolio risk management. He has experience in banking, broking, proprietary trading and funds management. John was a founder and CIO of Aurora Funds Management. He was also a founder and CIO of Fortitude Capital that was awarded the Australian Hedge Fund of the Year in 2008 and in 2009. In 2013 John was also recognised by AIMA for his Contribution to the Australian Hedge Fund Industry.
All website content in respect of the Hybrid Income Fund ARSN 678 888 821 (the Fund) is issued by Evolution Trustees Limited ACN 611 839 519 AFSL 486217 (Evolution) as responsible entity of the Fund. Seed Funds Management Pty Ltd ACN 622 414 082, a corporate authorised representative (No. 001308397) of its related body corporate, Seed Partnerships Pty Ltd AFSL 492973 (Seed) is the investment manager of the Fund. The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Fund, you should consider the current Product Disclosure Statement (PDS) and Target Market Determination (TMD), and other material published by Seed or Evolution, and assess whether the Fund is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser. Neither Evolution nor Seed guarantees repayment of capital or any particular rate of return from the Fund. Neither Evolution nor Seed gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Seed as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance. For performance reporting purposes, the NAV unit price has been used, however, if an investor is to come out of the Fund, that would be done at the exit price.
^FUNDMONITORS FACTORS DISCLAIMER: The “tick logo” is provided by Australian Fund Monitors Pty Ltd (ACN 122226724, AFSL 324476) and is based on the FACTORS Report that was prepared in accordance with ASIC’s RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees. Recipients should consider their own financial circumstances and objectives prior to making any investment decision. No part of the report may be reproduced without permission. The content is updated monthly and only the current version should be used. For further information on the FACTORS research process please visit www.fundmonitors.com. Past returns do not indicate future performance.