CRED

About

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of investment grade fixed-rate Australian corporate bonds. The Fund’s strategy will preference securities offering superior expected excess returns over Australian government bonds.

• Aims to provide attractive income distributions, paid monthly, combined with compelling portfolio diversification benefits
• By selecting bonds based upon expected returns rather than debt outstanding, CRED’s index methodology seeks to avoid shortcomings of traditional debt-weighted indices and provide relatively higher returns
• The portfolio is comprised of senior, fixed rate, investment grade securities denominated in Australian dollars, issued by companies listed on the ASX or other eligible entities
• Eligible bonds must have amounts outstanding of at least $250m and a term to maturity of between 5.25 to 10.25 years
• Up to 35 bonds are selected from eligible universe, with each bond assigned an equal weight as at each rebalance date
• No single issuer shall have a weight in excess of 7% at each re-balance date

Advantages

• Regular, attractive income – income paid monthly, and expected to exceed income paid on cash, term deposits, government and composite bond exposures
• Diversification & defence – investment grade fixed-rate Australian corporate bonds have historically tended to rise in value when Australian shares have fallen, providing diversification benefits and defensive characteristics to portfolios
• Low cost – management costs of only 0.25% p.a.
• Ranking – underlying portfolio comprises senior bonds, which rank above shareholders in the event of issuer default
• Access – simple way to access a portfolio of Australian investment grade corporate bonds, which are inaccessible to most investors directly
• Transparent – portfolio holdings, value of Fund’s assets, yield information and net asset value per unit available daily on our website
• Liquidity – available to trade on the ASX like any share

How to Invest

• You can buy or sell units just like you’d buy or sell any share on the ASX
• Fund requires no minimum investment