Investing

BondAdviser Income Plus SMA

BondAdviser Income Plus SMA

About the BondAdviser Income Plus Portfolio

The BondAdviser Fixed Income Model Portfolios were developed in response to client query and limited understanding of the risks and required returns associated with debt and hybrid securities.

BondAdviser recognise that advisers do not always have sufficient time to manage credit and interest rate risk and we provide a solution which prudently manages these risks through our research and portfolio construction capacity.

Separately Managed Accounts (SMAs) offer investors easy access to expert knowledge in a transparent, practical, and cost-effective manner, while also allowing full ownership of the underlying instruments.

Portfolio Summary Details

Portfolio BondAdviser Income Plus Portfolio
Code TBA
Inception Date 1 April 2016
Portfolio Manager Bond Adviser Pty Ltd ABN 31 164 148 467 and AFSL 456783) (‘BondAdviser’) is the portfolio manager responsible for designing and managing the composition of the portfolio for HUB24, to meet the investment objective and investment strategy detailed below.
Benchmark RBA Cash Rate plus 1.5%
Designed for The BondAdviser Income Plus Portfolio is designed for investors who want an alternative to term deposits while maintaining capital stability, regular income and low variability of returns. This portfolio is suitable for investors seeking income with a focus on capital preservation.
Investment objective The portfolio aims to outperform the RBA Cash Rate by 1.5% over the medium term of 3 years (before fees). It also aims to provide higher income returns than traditional cash investments.
Investment Universe BondAdviser believes in active portfolio management and uses a combination of top down and bottom up analysis to extract opportunities presented in fixed income markets.
BondAdviser also believe that the best way to achieve portfolio objectives is through risk budgeting, diversifying assets and managing active strategies over time.
Investment Strategy Authorised Investments are:

  • Exchange Traded Funds (ETFs)
  • Exchange Traded Products (ETPs)
  • Exchange Traded Bonds; and
  • Cash.

The portfolio will not hold listed equities or exchange traded hybrids and does not invest in derivatives.

Typical Number of Stocks 8 to 12 securities with a maximum of 20 securities
Asset Allocation Ranges
  • Exchange Traded Funds and Products: 0- 50%
  • Exchange Traded Bonds: 30-100%*
  • Cash: 0 – 25%

* includes floating and fixed rate debt securities

Investment Management Fee  0.275% p.a. of the balance in the managed portfolio.This fee is calculated as a percentage of the managed portfolio calculated daily and deducted from your cash account monthly in arrears.
Performance Fee Nil
Estimated Indirect Cost Ratio (ICR) The total estimated ICR for the Portfolio is 0.20% p.a. This is indicative only, as the actual ICR may vary depending on the investment fees and weightings of the underlying investments selected for this portfolio. HUB24 will update the estimated ICR at least annually. For an up-to-date ICR estimate please contact your adviser or HUB24.
Minimum Suggested Time frame 3 years
Turnover The aim of the portfolio is to keep turnover to a minimum. Due to the nature of the investment type approximately 10-20% of the portfolio is expected to mature over the course of a year. Active turnover is expected to be approximately 0 – 10 %. Therefore overall turnover is generally expected to be in the range of 10% to 30% p.a.
Brokerage For information about brokerage for trading securities within a portfolio which ordinarily applies, refer to the ‘Additional explanation of fees and costs’ in the HUB24 IDPS Guide.

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Contact details

For further details please contact BondAdviser:

Nick Yaxley, Head of Research
T: 03 9670 8615
E: nicholas.yaxley@bondadviser.com.au

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Additional Information

Investment Philosophy:
BondAdviser believes that using a combination of top down and bottom up analysis is the best way to extract opportunities presented in fixed income markets. They also believe that the best way to achieve the portfolio objectives is through risk budgeting, diversifying assets and managing active strategies over time.

Investment Strategy:
The investment strategy uses a high conviction approach with a focus on a diversified set of investments with stable or improving credit outlooks.

About BondAdviser:
BondAdviser is an independent, privately owned Australian company that provides fixed income research, pricing data and investment tools to investors and intermediaries via a central online portal. BondAdviser’s research covers all ASX-listed interest rate securities and a large range of over-the-counter (OTC) corporate bonds for both the primary and secondary markets. This includes corporate bonds, hybrid securities, capital securities, inflation linked bonds, convertible bonds, exchange-traded treasury bonds, convertible notes and preference shares.

Useful tools

Cash Flow Tool
Our cash flow tool allows you to chart the coupon payments for a selection of up to 10 XTBs. Build a cash flow

Yield Calculator
Our yield calculator provides a yield to maturity for any bond price entered, or a price when a yield is entered. Calculate a yield.

Key Bond Terms
A list of key bond market terms with explanations is available. View here.