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Australian Unity Vianova Core Plus Trust |
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Rebate |
4.00%
as additional units |
| Minimum
Investment |
$1,000 |
About
the Fund
The Fund
combines the strength of Vianova’s Australian fixed
interest investment management with that of global
fixed interest manager Newton Investment Management
Limited.
The Fund offers investors exposure to both
Australian and global fixed interest securities with
the aim to provide attractive and regular income,
and to preserve capital.
The investment manager applies a global view to the
management of the portfolio, recognising that global
economies and events have an impact on the relative
value of both foreign and domestic fixed interest
securities.
The investment managers focus on delivering positive
returns to investors regardless of the performance
of the broader fixed interest market (index).
Who is
the investment manager?
Vianova Asset Management Pty Ltd (Vianova) is the
investment manager of the Fund.
Vianova directly manages the Australian exposure of
the Fund and Newton Investment Management Limited
manages the global exposure.
What
does the Fund invest in?
The Fund is a blended portfolio of
two funds:
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Australian Unity Investments
Strategic Fixed Interest Trust managed by
Vianova. This 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. |
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Mellon Global Bond Fund
managed by Newton. This Fund invests in a
range of fixed interest securities and
financial instruments traded across global
markets. |
The
Australian Unity Investments Vianova Core Plus Trust
typically has a 50-90% exposure to Australian fixed interest
(including cash) and 10-50% exposure to global fixed
interest (including currency).
What is the Fund’s investment process?
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.
In expanding the investment universe for this Fund, Vianova
can look beyond the set of investment opportunities within
Australia to consider:
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Markets of other countries |
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Sectors not available in
Australia |
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Corporations that may fit
with Vianova’s thematic
views but do not issue
in Australian capital markets |
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Opportunities arising from
selectively running unhedged exposures to
different global currencies |
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Australian Unity Vianova Core Plus Trust - Retail Units |
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APIR Code |
AUS0034AU |
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Inception date |
December
2007 |
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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 |
Analyse strategies
For the portion of the portfolio that is to be invested in
Australian assets, the themes developed produce multiple
strategies for further evaluation. Vianova then identify and
analyse 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.
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.
Security Selection
Upon identifying undervalued opportunities, a “bottom-up”
credit analysis and security selection process is then
applied by Vianova 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 also focuses on:
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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 issuer’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.
Currency hedging
The Mellon Global Bond Fund is operated in
US dollars and the currency exposure of its underlying
investments is actively managed. In order to manage the additional currency
risk of investing in this offshore fund, hedging is usually undertaken
to reduce the impact of changes in the value of the Australian
dollar.
Derivatives
The Fund may use derivatives for hedging
unwanted risks and for portfolio diversification. Hedging
activity is used primarily for duration protection and credit protection.
Derivatives may also be used by Vianova to change exposures of the
Fund to the Underlying Funds quickly and for lower cost. However,
it is not our policy to use derivatives for gearing purposes or for
speculative activities.
The Underlying Funds may also use
derivatives and are likely to do so more actively.
More information
The Fund’s
performance and unit prices are available to view at:
http://www.australianunityinvestments.com.au/vcpt
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. |
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