Coolabah Capital Investments has launched its first fund on the Chi-X Australia exchange – Coolabah Active Composite Bond fund.
The managed fund (FIXD) would be an active composite bond strategy offered to retail investors, having previously only been available to superannuation funds.
It seeks to find mispricing in government and corporate bond markets by investing in a diversified portfolio of defensive assets of investment grade including cash, government bonds and subordinated bonds. This would generate capital gains in addition to the yield on those securities.
The fund would aim to beat a benchmark of the Bloomberg AusBond Composite 0+Yr Index.
Ann Cheng, portfolio management director, and Ying Yi, market technicals analyst, said: “Clients are seeking the downside protection that fixed income offers in this time of market volatility, without needing to sacrifice consistent quarterly income or capital gains”.
Vic Jokovic, Chi-X Australia chief executive, said: “FIXD will help to broaden the range of options for investors seeking a more defensive allocation for their portfolio, which is critically important as global markets continue to prove volatile”.