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The Fund aims to provide investors with regular
income and to preserve capital.
Who is
the investment manager?
Vianova
Asset Management Pty Ltd, is the investment manager
of the Fund.
What does the Fund invest in?
The Fund invests in a range of Australian fixed
interest securities, including Government,
corporate, bank and other bonds, debentures, notes
and other debt related securities, derivatives and
cash. The Fund has broad investment guidelines
permitting investments in Australian fixed interest
securities of 0-100% and cash and similar
investments of 0-100%. This aims to help the Fund to
achieve positive performance returns and to protect
investors’ capital in a rising interest rate and/or
a deteriorating credit environment.
Identify themes
The starting point of Vianova’s investment process is to
identify structural interest rate themes. Each theme is then
applied to the fixed interest market elements of duration,
yield curve position, and sector exposure.
Analyse strategies
This produces multiple strategies for further
evaluation. Vianova identifies and analyses the pricing
inefficiencies and investment opportunities that these
strategies present.
Duration strategy
The portfolio’s sensitivity to changes in interest rates
is managed and compared to Vianova’s expectations on
economic outlook with current market pricing.
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Australian Unity Investments
Strategic Fixed Interest Trust – Retail Units |
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APIR Code |
AUS0008AU |
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Inception date |
October 2005 |
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Minimum Initial Investment |
$1,000 |
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Minimum Additional Investment |
$500 |
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Minimum Regular Saving Plan |
$100
per month |
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Entry/Contribution Fee |
4.10% |
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Minimum Withdrawal Amount |
$1,000 |
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Exit/Withdrawal Fee |
Nil |
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Management Costs |
1.20%
pa |
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Buy/Sell Spread |
Buy:
Nil Sell: Nil |
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Income Distributions |
Quarterly |
What is the Fund’s investment process?
Yield curve strategy
Vianova’s aim is to position the Fund’s portfolio to take
advantage of current and expected differences between short
and long term interest rates.
Sector strategy
Vianova seeks mis-pricing opportunities across the
Australian fixed interest landscape, considering Government,
semi-government, corporate, and short term money market
sectors.
Credit analysis and security selection
Upon identifying undervalued opportunities, a
“bottom-up” credit analysis and security selection process
is then applied to confirm the investment opportunity.
This begins with an analysis of a debt issuer’s ability to
repay its debt and its ability to generate cash flow and/or
the ability to tax (for a government issuer). The review of
the debt repayment abilities of the Commonwealth Government
and semi-government issuers is supported by the analysis of
the major rating agencies.
The individual company selection process for corporate bonds
recognises the additional inherent risk and therefore will
focus on two additional core areas:
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■ |
company cash
flow management – the company must be able
to adequately demonstrate strong cash flows
to support the business; and |
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■ |
company
competitive advantage – companies must be
operating in a sector with a business model
that provides them with a distinct
competitive advantage. |
Vianova reviews and determines a borrower’s ability
to withstand economic duress. Securities will then
be chosen as a result of this analysis with due
consideration given to (but not limited to)
liquidity, strength of the borrower’s management and
the complexity of the debt instrument.
Consistency with the thematic views and investment
process is also a key factor when selecting
securities.
Risk management and portfolio
construction
Vianova has a sophisticated proprietary
portfolio management system that has been developed and in
use over many years. This system enables detailed portfolio
analysis to be performed in a number of different ways. The
flexibility of the system allows both risk isolation and
aggregation, in addition to performing detailed scenario
analysis on all aspects of the portfolio.
This flexibility is an important tool for exploring risk
tolerances to thematic investment strategies. The system
enables all analysis to be performed on a real-time basis
through live market data.
Derivatives
Vianova may use derivatives to hedge existing exposures or
implement the investment strategy.
More information
The Fund’s performance and unit prices available to view at
www.australianunityinvestments.com.au/sfit
Important
information
This investment product is issued by Australian
Unity Funds Management Limited ABN 60 071 497 115, AFS
Licence No 234454. This information is intended only to
provide a broad summary of this financial product.
Investment decisions should not be made upon the basis of
its past performance or distribution rate, since future
returns will vary. You should refer to the current Product
Disclosure Statement if you wish to know more about this
product. The information provided here was current at the
time of publication only, and we recommend that you access
www.australianunityinvestments.com.au for further
information.
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