An actively managed alternative source of fixed income

Delivering risk control and uncorrelated returns

Overview

The CC JCB Dynamic Alpha Fund (the Fund) is designed as an absolute return product, that aims to deliver stable and consistent returns over time irrespective of share and bond market movements. The investment team applies a range of portfolio management and risk-controlled techniques to a universe of global high grade sovereign bonds (i.e. anchored by G7 nations, as well as other selected highly rated countries, such as Australia). It offers a high level of liquidity in Government issued instruments, without any corporate credit exposure.

Given the unconstrained nature of the Fund, JCB has access to a wider range of markets and financial instruments – using a combination of duration positioning (both long and short), interest rates curvature, cross market positioning, relative value and currency strategies. This provides a greater range of options to help generate superior risk-adjusted returns for investors.

WHY GLOBAL ABSOLUTE RETURN FIXED INCOME?

In the face of rising bond yields, ongoing inflation worries, and a volatile interest rate landscape, skilled fixed income investment managers can identify opportunities to capitalise on within the broader financial markets.

Absolute return fixed income strategies enable investors to benefit from these opportunities, without the risk of a negative market beta (or interest rate risk). This is one reason to look at absolute return fixed income.

Diversification – the Fund can be used to help diversify other exposures such as equities, credit or more volatile absolute return offerings as it is uncorrelated to traditional market benchmarks and risk assets.

Capital preservation – the Fund only invests in global high grade government issued assets, keeping the underlying asset pool of the highest quality with a lower risk of capital loss compared to other investments. The assets are unencumbered by benchmark relative constraints and this can help mitigate against periods of market volatility and potentially profit from them.

Income – by nature of the fixed income instruments in the portfolio such as government, Supranational or Public Finance Agency backed bond issuers provides the potential to earn regular income (usually semi-annual).

Highly liquid – the underlying markets of global high grade bonds and bond futures are liquid positions that in usual market conditions can be bought or sold by the Fund with ease.

Fund Details

* In order to carry out the investment strategy and achieve the objective set out above, the asset allocation and investment guideline target ranges may vary significantly from time to time.** The Base Fee is expressed as a percentage of the net asset value of the Fund relating to the Class A Units, reflected in the daily Unit price and payable monthly in arrears from the Fund. All figures disclosed include the net effect of GST and RITC.

Research Ratings

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The rating issued 28 October 2024 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 2 February 2024) 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