Switzer Higher Yield fund relaunches as ETF
The Switzer Higher Yield fund has launched on the Chi-X Australia stock exchange as an exchange traded fund, managed by Coolabah Capital Investments.
The fund aimed to provide investors with an attractive cash yield and low capital volatility by investing in fixed income securities.
Marty Switzer, chief executive of Contango Asset Management, said the firm had decided to partner with active credit manager Coolabah to relaunch the fund as an exchange traded vehicle following investor demand.
The COVID-19 pandemic and resulting stockmarket volatility had re-focused people’s minds, he said, on the importance of diversification and including fixed income in a portfolio.
Coolabah portfolio management director, Ying Yi Ann Cheng, said: “The Switzer Higher Yield fund will actively invest in a diversified portfolio of Australian deposits, investment grade floating-rate notes and hybrid securities, targeting a weighted-average credit rating of ‘A-’, and near-zero interest rate duration risk.
color:#404040">
“Rather than chasing yield through assuming greater credit default risk, interest rate risk, or liquidity risk, Coolabah focuses on augmenting the portfolio’s yields through actively selecting cheap bonds that can potentially provide future capital gains.”
color:#404040">
AUTHOR
Laura Dew
Recommended for you
Natixis Investment Managers has hired a distribution director to specifically focus on the firm’s work with research firms and consultants.
The use of total portfolio approaches by asset allocators is putting pressure on fund managers with outperformance being “no longer sufficient” when it comes to fund development.
With evergreen funds being used by financial advisers for their liquidity benefits, Harbourvest is forecasting they are set to grow by around 20 per cent a year to surpass US$1 trillion by 2029.
Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
