Clime Australian Income
Fund Summary
$40.3m
FUND SIZE
3.2%
3 YEAR RETURN P.A
(To 30/06/2020)
5.4%
RETURN SINCE INCEPTION P.A
(July 1, 2015)
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Past performance is not a reliable indicator of future performance. Returns are calculated after fees have been deducted and assume distributions have been reinvested. No allowance is made for tax when calculating these figures.Please refer to Product Disclosure Statement/ Information Memorandum relating to the products and consider them before making any decision about whether to invest in the product or not.
Clime Australian
Income Fund
Annual report – For the year ended 30 June 2019
The Clime Australian Income Fund is a goal-based multi-asset class fund that invests across the entire capital structure of ASX-listed companies and over-the-counter (OTC) securities. The fund seeks out quality income investments commensurate with the risk of each asset type, aiming to achieve a total return of RBA cash rate + 3% pa with price stability. We view return and risk as equally important and we construct the portfolio such that the risk as defined by the annualised volatility of the change in the unit price to be in the 3% to 5% range (4.0%±1.0%).
The fund’s income goal is to provide regular quarterly income distributions in September, December, March and June. Moreover, we aim to distribute the three interim distributions (September, December and March) to be as uniform as possible while the June final distribution for the financial year will include capital gains and franking credits (if any) so that the final distribution is likely to be double the interim distributions. Historically the fund has exceeded that goal.
The Clime Australian Income Fund seeks to provide an income stream above the RBA cash rate from a portfolio of Australian listed and over the counter (OTC) securities, with a view for regular income and price stability. The portfolio invests in selected high-quality individual income generating assets across the entire capital structure (senior and junior debt, capital notes and preference shares, REIT, utility and infrastructure and other ordinary equity) with consistent income generation. Portfolio yield is likely to be the bulk of the portfolio return, with modest capital gain over the medium term. Fund performance is also likely be enhanced by franking credits from capital notes and dividends from ordinary shares.
In summary, the fund is a goal-based investment. It aims to achieve:
- A return of at least better than RBA cash rate + 3.0%
- A good price stability where the risk is within 3.0% and 5.0% and a relative risk of no more than 40% of the ASX200 risk profile using the same measure
- A regular, meaningful and predictable quarter income distribution for all unitholders.
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Investing Methodology
The Clime Australian Income Fund seeks to provide an income stream above the RBA cash rate from a portfolio of Australian listed and over the counter (OTC) securities, with a view for regular income and price stability. The portfolio will invest in selected high-quality individual income generating asset across the entire capital structure (senior and junior debts, capital notes and preference shares, REIT, utility and infrastructure and other ordinary equity) with consistent income generations. Portfolio yield is likely to be the bulk of the portfolio return, with modest capital gain over the middle term. The performance is also likely be enhanced by franking credits from capital notes and ordinary share dividends the fund invests in.
Fund Performance
| 1 MONTH | 3 MONTHS | 6 MONTHS | 1 YEAR | 3 YEARS (PA)* | 5 YEARS (PA) | SINCE INCEPTION (PA)* | |
|---|---|---|---|---|---|---|---|
| Net Portfolio Return | 0.3% | 2.3% | 8.3% | -1.5% | 3.2% | 5.7% | 5.4% |
| Income | 0.4% | 0.4% | 1.5% | 2.6% | 3.6% | 3.7% | 3.6% |
| Capital growth | -0.1% | 1.9% | 6.7% | -4.0% | -0.3% | 1.9% | 1.7% |
| Franking | - | - | - | 0.1% | 0.2% | 0.2% | 0.2% |
Unit Prices
Wholesale
| DATE | ENTRY | EXIT |
|---|---|---|
| 22/10/2020 | $1.1097 | $1.1041 |
| 21/10/2020 | $1.1106 | $1.1050 |
| 20/10/2020 | $1.1103 | $1.1047 |
Retail
| Date | Entry | Exit | |
|---|---|---|---|
| 22/10/2020 | $0.9831 | $0.9781 | |
| 21/10/2020 | $0.9838 | $0.9788 | |
| 20/10/2020 | $0.9836 | $0.9786 |