About

The Halidon Yield Enhanced Fund seeks to provide investors with an attractive cash yield with minimal capital volatility. The Fund aims to achieve a return greater than the Benchmark each year, before tax and after fees and expenses over rolling three year periods.

The fund invests in a diverse range of yield bearing assets including cash, debt and hybrid securities and is suitable for investors seeking a sustainable income stream who are prepared to hold their investment for at least three years.

The investment philosophy is based on the premise that value can be created by using top down macro-economic analysis combined with a bottom up quantitative overlay to uncover and profit from the mispricing of debt and hybrid securities. Switzer’s “active” style seeks to take advantage of mispricing thereby providing yield and potential for capital gain.

Fund Objectives

  • To achieve a return greater than the Benchmark each year, before tax, after fees and expenses over rolling three year periods; and,
  • To generate an attractive cash yield with minimal capital volatility.

Benefits

  • Access attractive cash yield with minimal capital volatility
  • An experienced manager with a long track record
  • Low management fee
  • An alternative source of yield from familiar blue chip companies like Telstra, Macquarie and NAB
Request an
Information Pack

About

The Halidon Yield Enhanced Fund seeks to provide investors with an attractive cash yield with minimal capital volatility. The Fund aims to achieve a return greater than the Benchmark each year, before tax and after fees and expenses over rolling three year periods.

The fund invests in a diverse range of yield bearing assets including cash, debt and hybrid securities and is suitable for investors seeking a sustainable income stream who are prepared to hold their investment for at least three years.

The investment philosophy is based on the premise that value can be created by using top down macro-economic analysis combined with a bottom up quantitative overlay to uncover and profit from the mispricing of debt and hybrid securities. Switzer’s “active” style seeks to take advantage of mispricing thereby providing yield and potential for capital gain.

Fund Objectives

  • To achieve a return greater than the Benchmark each year, before tax, after fees and expenses over rolling three year periods; and,
  • To generate an attractive cash yield with minimal capital volatility.

Benefits

  • Access attractive cash yield with minimal capital volatility
  • An experienced manager with a long track record
  • Low management fee
  • An alternative source of yield from familiar blue chip companies like Telstra, Macquarie and NAB
Request an
Information Pack

Historical Performance

Actual Fund Return Since Inception

Benchmark comprises the Bloomberg AusBond Composite 0 – 3 Index (50% weight) + Bloomberg AusBond Bank Bills Index (50% weight)

Performance to 29 September, 2017

% 1 Month 3 Month 6 Month 1 Year 3 Year Inception
(pa)
Fund 0.19 0.81 1.88 3.79 3.72 5.63
Benchmark 0.11 0.42 0.91 1.75 2.37 3.69
Relative 0.08 0.39 0.97 2.04 1.35 1.95

Return Breakdown %

% 1 Month 3 Month 6 Month 1 Year 3 Year Inception
(pa)
Income 0.00 0.00 1.61 3.22 3.16 4.86
Capital 0.19 0.81 0.27 0.57 0.56 0.77

Income Distribution

Half-Year Ending Amount (CPU) Reinvestment Price
Jun 2017 1.2342 $0.824020
Dec 2016 1.2011 $0.819956

*Performance is after fees and before taxes. Returns assume reinvestment of all income distributions, and do not take into account any management cost rebates. Past performance is not an indication of future performance. Total returns are calculated after allowing for management and transaction costs.

Key Fund Info

Fund Summary

Fund Investments Cash; Debt Securities; Hybrid
Securities (Australian governments,
companies and subsidiaries only).
Minimum Number of Investments 25
Sector Exposure Limits (GICS) 35% Banks. 25% Others.
Maximum Single Issuer Exposure 15% for CBA, WBC, ANZ, NAB. 7.5% Others
Duration Limits Maximum 2 Years
Recommended Investment Period At least 3 years
Unit Price Variable and calculated each business day
Access to Funds Usually within 5 business days
Management Fee 0.90%
Distributions Half-yearly (December/ June)
APIR Code SWI001AU
Minimum Investment $5,000

The Manager

Switzer Asset Management is the investment manager of the Fund. Switzer Asset Management
is a joint venture between Switzer Financial Group and Contango Asset Management.

Investors will have the benefit of having their funds managed by a
highly-experienced investment team consisting of:

Jarrod Deakin

Director

BEc (Flinder's University), Grad Dip Applied Finance (FINSIA)

How to Invest

Why Invest in the
Halidon Yield Enhanced Fund

Frequently Asked Questions

  • What assets does the Fund invest in?

    The Fund invests in a diverse range of yield bearing assets including cash, debt and hybrid securities issued by well-known, blue chip companies. Issuers of the top holdings are:

    • Cash
    • Crown Group
    • Royal Bank of Canada
    • SCA Property
    • BHP
    • Commonwealth Bank of Australia
    • National Australia Bank
    • Nufarm*
  • Why would I invest in bonds?

    Bonds are a form of corporate debt, which means they are higher up the corporate structure than equity (common shares). This means that companies are required to pay the interest on their debt commitments before any distributions to equity holders, which makes bonds a more reliable and less volatile investment class. The regular interest payments means they can provide a predictable stream of income.
  • How often is interest paid?

    The Fund distributes interest on a half-yearly basis.
  • What are the fees?

    Halidon’s management fee is 0.9225%. Additional expenses and reimbursements are estimated to be 0.075%, so the total cost is 0.9975%*.
  • Who is the Responsible Entity and Investment Manager?

    Switzer Asset Management Limited (formerly Halidon Asset Management Limited) is the Responsible Entity and the Investment Manager of the Fund.

*As at 30 December, 2016

  • How well has the Fund performed in the past?

    Since inception in August 2009, the Fund has returned on average 5.81% per annum compared to the Benchmark Index return of 3.86%*.
  • How big is the Fund?

    The Fund currently has $31.69 million in funds under management*.
  • How and when can I access my money?

    Redemptions are paid within 21 days of receipt of written request, but usually paid within five business days. If the scheme becomes “non-liquid” then the Constitution states the Responsible Entity may offer investors the opportunity to redeem their Units (within 21 days of making the offer). You can liquidate your holdings at any time.
  • What are the risks of investing in the Fund?

    As with all investments, there are risks involved with an investment in the Halidon Yield Enhanced Fund. It is important to understand that the value of investments may rise or fall, investment returns will vary, future returns may differ from past returns, investment returns are not guaranteed and investors may lose the money they have invested in the Fund. For more detailed information relating to the risks of the Fund, please refer to the Product Disclosure Statement (PDS) available via the 'Downloads and Forms' section at the top of this page.

*As at 30 December, 2016