The Enhanced Yield Fund aims to create long term wealth through identifying and profiting from market anomalies predominately in corporate bond, hybrid security, and other compelling debt market opportunities around the world. Originally developed to invest the portion of PM Capital's own money which would otherwise sit in cash, the Fund was opened to co-investors as we realised our problem – how to produce regular income and attractive returns with low volatility – was shared by many other investors, and our solution may be able to help them achieve their own goals.
To provide investors a return in excess of the Reserve Bank of Australia’s (RBA) cash rate. The Fund aims to outperform the RBA cash rate with a low degree of volatility and minimal risk of capital loss.
Fundamental, bottom-up, research-intensive approach
2 years plus
The Fund may be appropriate for investors seeking capital preservation and potential return in excess of the Reserve Bank of Australia's cash rate with a low degree of volatility
Unlisted fixed income fund, $AUD, unhedged
APIR PMC4700AU (Class B)
ARSN 099 581 558
PML02 (Class B)
Investment product ratings*
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Zenith's Andrew Yap and EYF's Jarod Dawson discuss the Fund
The Fund may be suitable if you are looking for:
Attractive levels of income to help fund your lifestyle
Investors in the Fund over the recommended minimum time (2 plus years) have received attractive returns in excess of cash since inception (and were provided 100% liquidity) with a low degree of volatility - despite events such as the Global Financial Crisis and the European Debt Crisis.
Access to a portfolio of stand-out investments chosen by an experienced team backed by an established philosophy and process
The Fund is built security by security, handpicked by the PM Capital team. The return profile has been, and may continue to be, significantly different to that provided by more traditional benchmark-aware global bond funds
Hedged currency - reduced risk
There is no material currency exposure in the Fund - as far as practicable foreign currency exposures are converted back to Australian Dollars
A minimum 20% cash position helps the Fund preserve capital and achieve its investment objectives with low volatility. The Fund’s process is effective and repeatable, based on a philosophy developed over 19 years. This has produced attractive returns for co-investors.
We have an authentic investment process where our exposure to industry sectors, geographic regions or market capitalisation is determined solely by our conviction in individual risk/ reward opportunities that we identify. No conviction = no investment.
Our co-investors receive access to a unique subset of opportunities to which they would otherwise find difficult to access. The management team have significant investments in the PM Capital Global Yield strategy – they invest for and with you.
This information does not constitute advice or recommendations, and is subject to change without notice. It does not take into account the objectives, financial situation or needs of any investor which should be considered before investing. Investors should consider a copy of the current Product Disclosure Statement, and seek their own financial advice prior to investing. Past performance is not a reliable guide to future performance and the capital and income of any investment may go down as well as up due to various market forces. The investment objective is not a forecast, and is only an indication of what the investment strategy aims to achieve over the medium to long term.
The Zenith Fund Awards were issued on 15 October 2021 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. To the extent that the Fund Awards constitutes advice, it is General Advice for Wholesale clients only without taking into consideration the objectives, financial situation or needs of any specific person. Investors should seek their own independent financial advice before making any investment decision and should consider the appropriateness of any advice. Investors should obtain a copy of and consider any relevant PDS or offer document before making any investment decisions. Past performance is not an indication of future performance. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.
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