Objective
The Mason Stevens Cash Enhanced Managed Portfolio invests in a portfolio of AUD denominated fixed income securities that aims to outperform the RBA cash rate by 30-55 basis points (after fees) using very liquid AUD fixed income securities.
Objective
The Mason Stevens Wholesale Cash Enhanced Portfolio invests in a portfolio of AUD denominated fixed income securities that aims to outperform the RBA cash rate by 40-65 basis points (after fees) using very liquid AUD fixed income securities.
Targets regular income, distributed as coupons. Maximising capital gains is also part of the strategy however using investment grade only securities with a target average rating of A+/AA- or better.
Access to relatively shorter dated and higher rated instruments that provide attractive returns.
Direct beneficial ownership of securities.
Flexible solution that allows for the rebalancing of the underlying investment weightings in the
Managed Portfolio, acting as a cushion to changing market conditions and can take advantage of market weakness.
Targets regular income, distributed as coupons. Maximising capital gains is also part of the strategy however using investment grade only securities with a target average rating of A+/AA- or better.
Access to relatively shorter dated and higher rated instruments that provide attractive returns.
Direct beneficial ownership of securities.
Flexible solution that allows for the rebalancing of the underlying investment weightings in the Managed Portfolio, acting as a cushion to changing market conditions and can take advantage of market weakness.
Features
| Investment objective | Aims to provide a return of 40-65 basis points p.a. above the Benchmark (after fees) over a rolling 1-3 year period. |
|---|---|
| Benchmark | RBA Cash Rate |
| Availability | Wholesale clients only, as defined by the Corporations Act |
| Management fees and costs¹ | 0.35% p.a |
| Minimum initial investment | AUD $25,000 |
| Minimum additional investment | AUD $10,000 |
| Liquidity | Daily |
¹ Calculated daily and paid monthly in arrears. This does not include underlying fees and costs of individual investment. For all fees and costs associated with the Managed Portfolio, please refer to the relevant disclosure document.
Features
| Investment objective | Aims to provide a return of 30-55 basis points p.a. above the Benchmark (after fees) over a rolling 1-3 year period. |
|---|---|
| Benchmark | RBA Cash Rate |
| Management fees and costs¹ | 0.35% p.a |
| Minimum initial investment | AUD $25,000 |
| Minimum additional investment | AUD $10,000 |
| Liquidity | Daily |
¹ Calculated daily and paid monthly in arrears. This does not include underlying fees and costs of individual investment. For all fees and costs associated with the Managed Portfolio, please refer to the relevant disclosure document.
Portfolio parameters
| Investment universe | All in AUD Bonds (financials, government, corporates), Residential Mortgage-Backed Securities (RMBS), Asset Backed Securities (ABS), Floating Rate Notes (FRN), Major Bank T2 and Cash Deposits. Securities may be listed on an exchange or unlisted. |
|---|---|
| Weighted average life | 1-2 years |
| Number of investments | 5 - 30 (subject to Sub-Advisor discretion & market conditions) |
| Cash weighting range | 2% - 20% |
| Maximum individual security weighting | 25% |
Portfolio parameters
| Investment universe | All in AUD Bonds (financials, government, corporates), Residential Mortgage-Backed Securities (RMBS), Asset Backed Securities (ABS), Floating Rate Notes (FRN), Major Bank T2 and Cash Deposits. Securities may be listed on an exchange or unlisted. |
|---|---|
| Weighted average life | 1-2 years |
| Number of investments | 5 - 30 (subject to Sub-Advisor discretion & market conditions) |
| Cash weighting range | 2% - 20% |
| Maximum individual security weighting | 25% |
A solution for investors seeking
A better return than can be achieved from term deposits with greater liquidity.
A solution for investors seeking
A better return than can be achieved from term deposits with greater liquidity.
How are the portfolios managed?
Mason Stevens Asset Management is the Investment Manager.
Security selection is conducted using thorough bottom-up credit research coupled with a strong sense of relative value and timing.
Daily management and observation of market and portfolio exposure.
Monthly Investment Committee to discuss economic outlook, sector views and risk management.
How are the portfolios managed?
Mason Stevens Asset Management is the Investment Manager.
Security selection is conducted using thorough bottom-up credit research coupled with a strong sense of relative value and timing.
Daily management and observation of market and portfolio exposure.
Monthly Investment Committee to discuss economic outlook, sector views and risk management.
-
Predictability
The regular income stream from fixed income investments can provide some predictability and stability to overall returns.
-
Diversification potential
Fixed income performance varies compared to equity and other financial asset markets.
-
Income generator
Fixed income returns can provide a regular flow of income, as cashflows are known in advance of investment.
-
Risk-adjusted return
Investing in credit can provide a repeatable and sustainable source of value in fixed income markets. Historically, investment returns from good quality credit assets have more than compensated investors for the risk of loss.
-
Less volatility
Historically, Australian fixed income exhibits less volatility than domestic equity and REITs.
-
Before you make an investment decision, it is important that you understand the risks that can affect your investment being able to meet its objective or retain value.
-
The risks that may impact the Managed Portfolio include, but are not limited to factors such as, market risk, company or security specific risk, and currency risk.
-
Please refer to the relevant disclosure documents for a full list of potential risks linked to the Manged Portfolio.
-
Predictability
The regular income stream from fixed income investments can provide some predictability and stability to overall returns.
-
Diversification potential
Fixed income performance varies compared to equity and other financial asset markets.
-
Income generator
Fixed income returns can provide a regular flow of income, as cashflows are known in advance of investment.
-
Risk-adjusted return
Investing in credit can provide a repeatable and sustainable source of value in fixed income markets. Historically, investment returns from good quality credit assets have more than compensated investors for the risk of loss.
-
Less volatility
Historically, Australian fixed income exhibits less volatility than domestic equity and REITs.
-
Before you make an investment decision, it is important that you understand the risks that can affect your investment being able to meet its objective or retain value.
-
The risks that may impact the Managed Portfolio include, but are not limited to factors such as, market risk, company or security specific risk, and currency risk.
-
Please refer to the relevant disclosure documents for a full list of potential risks linked to the Manged Portfolio.
Meet the team
David Hewett
Managing Director, Private Investments
David joined Mason Stevens in 2011. He works with single and multi-family offices and private high net worth investors. His consultative approach enables his clients to make investment decisions based on insight, trust and intelligence. With more than 25 years’ finance experience, David has held senior executive roles within St George Private Clients, ANZ Private and ANZ Investment Bank. He holds a Masters of Business Banking and Finance and Graduate Diploma in Banking and Finance from Monash University.
