Managed Treasury Fund

The Managed Treasury Fund employs duration management along with credit analysis with the aim of providing an enhanced return versus cash. In doing this we consider  economic fundamentals, market sentiment, fund flows and relative value between the cash rate and other securities along the yield curve.

The aim of the fund is to provide low but stable returns with a low level of volatility by investing in prime quality bank bills and other short-term securities.

A key feature of the Fund is its AAf rating by Standard & Poor's. The AAf rating indicates that the Fund's portfolio holdings exhibit very strong protection against losses from credit default. Fund credit quality ratings are identified by the subscript ‘f’ for fund, and represent Standard & Poor' assessment of the overall credit quality of a fund's portfolio holdings. A fund credit quality rating reflects the level of protection that the fund's portfolio provides against losses from credit defaults.

Fund at a glance

Fund aim

To provide low but stable returns with low volatility by investing in prime quality bank bills and other short-term securities.

Investment objective

To provide a total annual return (after costs and before tax) higher than the benchmark on a rolling 12 months basis.

Benchmark

UBS Bank Bill Index

Restrictions

• The maximum weighted average maturity of the total assets of the Fund will not exceed 1 year

• No single investment has a maturity exceeding 3 years.

• Derivatives such as options, futures and forward rate agreements may be used to reduce risk or gain exposure to physical investments. However, derivatives may not be used to gear the fund.

Inception date

24 December 1993

Recommended investment timeframe

No minimum

Distributions

Monthly and can be paid in cash or re-invested in the fund

Minimum investment

A$10 million

Buy/sell spread

Nil

Management expense ratio (MER)

0.2557%