Clime Fixed Interest
The Clime Fixed Interest Fund is a portfolio of lower risk higher quality fixed income securities. Equities in the form of ordinary shares and high-risk poor quality debts are not permitted.
The fund is predominantly invested in over-the-counter (OTC) fixed income and debt market with limited exposure to the listed debt market.
The fund’s main aim is capital preservation. It aims to achieve a total return of RBA cash rate + 2.0% pa, via regular monthly distributions. Since the fund may invest in capital notes, the final distribution in June includes any franking from investments.
The portfolio is constructed such that the risk as defined by the annualised volatility of the change in the unit price of 1.5%±1.0%. By comparison, historically the ASX200 index has an annualised risk 10% to 18% over a normal economic cycle. At 1.5% ± 1.0%, the Fund is managed to achieve appropximately 10% of the level of equity market risk.
The Clime Fixed Interest Fund seeks to provide a monthly income stream above the RBA cash rate from a portfolio of over the counter (OTC) credit debt securities with strong price stability.
The Fund invests in select high-quality individual income generating debts assets across the investment grade spectrum including sovereign debt papers, senior and junior debts (secured and unsecured), quality high yield bonds, capital notes, RMBS and ABS with consistent income generation.
Although the Fund is permitted to invest in fixed rate bonds, it focuses investing mostly in floating rate notes to limit exposure to interest rate risk. Since capital preservation is the main objective of the Fund, most of the debt securities owned are high credit investment grade with smaller exposure to lower ranked debt securities.
|1 MONTH||3 MONTHS||SINCE INCEPTION|
|Clime Fixed Interest Fund||0.6%||0.9%||2.7%|
Vincent joined Clime in 2009. He has extensive investment experience spanning fixed income and equities. He has over 10 years of portfolio management experience across multi-asset classes. Before joining Clime, he worked at Ausbil Dexia and Maxim Asset Management (now a wholly subsidiary of Charter Hall) where he has developed multi-factor quantitative models for stock selection and attribution analysis. Vincent is passionate about ethical investing, which forms part of his investment ethos.
Prior to this, Vincent worked in semiconductor device and materials research in academia and industry for more than 15 years. He has published close to 50 international refereed scientific publications in optoelectronics.
Get the inside scoop with
Join over 42000 subscribers who benefit from our financial insights and market recommendations each week.
Don’t miss out on our latest investment report written by The Clime Investment team.