Enhanced Yield Fund

Blocks

Fund overview

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.

Investment objective

investment objective

 

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.

Fund facts

Fund Category
Fixed Income
Investment style

Fundamental, bottom-up, research-intensive approach

Minimum investment
$20,000
Inception date
Suggested investment time

2 years plus

Investor Profile

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

Portfolio Manager

Jarod Dawson

Structure

Unlisted fixed income fund, $AUD, unhedged

APIR/ARSN code

APIR PMC0103AU

APIR PMC4700AU (Class B)

ARSN 099 581 558

MFUND CODE

PML01

PML02 (Class B)

Highly rated*

Morningstar Zenith
morningstar 2 Zenith 2

 

The Fund may be suitable if you are looking for:

Coloured Grid Items

Steady income

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Attractive levels of income to help fund your lifestyle

Colour
Pale Blue

Capital stability

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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. 

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Light Grey

Experience

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Access to a portfolio of stand-out investments chosen by an experienced  team backed by an established philosophy and process

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Blue

Purpose built

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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

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Black

Hedged currency - reduced risk

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There is no material currency exposure in the Fund - as far as practicable foreign currency exposures are converted back to Australian Dollars

Colour
Pale Blue

Meet the Manager

Why invest?  

Dependable

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 17 years. This has produced  attractive returns for co-investors.

Careful

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.

Co-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.

* © 2019 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 ‘class service’ have 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. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned October 2018) 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 www.zenithpartners.com.au.