Alexander Credit Income Fund
The Fund has an absolute return focus and aims to provide clients with a regular income stream by investing in a diversified portfolio of primarily, investment grade, Australasian fixed income credit assets.
The Fund is suited to retail or wholesale investors seeking an investment that aims to provide quarterly distributions and low volatility.
The Fund has an absolute return focus and aims to provide clients with a regular income stream by investing in a diversified portfolio of primarily, investment grade, Australasian fixed income credit assets. The Fund can invest in the full spectrum of fixed income credit assets including but not limited to: corporate bonds, corporate debt, bank bills, commercial paper, bank loans, hybrids, unit trusts, mortgage-backed securities, asset backed securities, credit and other derivatives and credit linked notes and convertible preference and ordinary shares.
The Investment Manager applies a Relative Value Trading approach to identifying opportunities in the fixed income credit markets and an overall hedging strategy that looks to protect against systemic shocks to the markets. The portfolio targets a Credit Duration range of positive five years to negative two years and an Interest Rate Duration range of positive one year to zero years. This means that the portfolio can be short credit risk.
The Fund may use derivatives for both investment and hedging purposes. The derivatives used by the Fund may include exchange traded derivatives and over-the-counter derivatives such as credit default swaps, interest rate swaps and cross currency swaps.
Asset Allocation
The Fund targets the following asset allocation ranges. These ranges are measured on the face value of each asset. This may not be achievable when the Fund is less than $100m. Further due to movements in the market or similar events, the guidelines set out below may not be adhered to from time to time. In these circumstances, the Manager will seek to bring the Fund’s investments within the guidelines within a reasonable period of time.
Investment Grade Allocation Range
| Investment Grade | 75% to 100% |
| Non-Investment Grade or Unrated | 0% to 25% |
Asset Type Allocation Range
| Cash | 0% to 100% |
| Corporate Bonds/Loans- | 0 0% to 100% |
| Senior and Subordinated Bank Debt | 0% to 50% |
| Bank Tier 1 | 0% to 20% |
| Residential Mortgage-Backed Securities | 0% to 25% |
| Asset Backed Securities | 0% to 25% |
| Commercial Mortgage-Backed Securities | 0% to 15% |
Regional Asset Allocation Range
| Australasia | 60% to 100% |
| North America | 0% to 20% |
| Europe | 0% to 20% |
As at 31 October 2023
As at 31 October 2023
The Alexander Credit Income Fund has an absolute return target above the benchmark in both rising and falling markets. The benchmark is the Bloomberg AusBond Bank Bill Index +1%.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Alexander Credit Income Fund (ARSN 629 915 199). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT) and is the Responsible Entity.
This information has been prepared by Alexander Funds Management Pty Ltd ("AFM") to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not act on a recommendation or statement of opinion without first considering the appropriateness of the general advice to your personal circumstances or consulting your investment advisor to determine whether the recommendation or statement of opinion is appropriate for your investment objectives, financial situation or needs. Neither AFM, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the relevant Product Disclosure Statement before making a decision about whether to invest in any product.
Alexander Funds is a boutique Australian fund manager that specialises in the fixed income credit markets. The business was established in 2009 and aims to provide its clients with stable returns and consistent distributions through investing in a portfolio of fixed income credit products.
Alexander Funds has a proven track record of providing its clients with access to opportunities in the fixed income credit markets that they are not able to access directly or through other funds. It invests alongside its clients in every fund that it manages which adds to the level of trust that it has developed with its clients.
The Alexander Funds investment team has decades of experience in the global fixed income credit markets and have experienced managing credit portfolios through a number of business and economic cycles. This gives it the capabilities and the confidence to be able to identify the best relative value credit products in all types of markets.
Rachel is the Chief Operating Officer of Alexander Funds. Rachel has been working in fixed income markets for over 20 years. Prior to joining Alexander Funds, Rachel was Vice President, Fixed Income with Lehman Brothers where she managed a portfolio of institutional investors’ money within the Australian market. Other roles she has held include Manager with West LB in London and Senior Dealer, Fixed Interest with Westpac Banking Corporation. Rachel holds a Bachelor of Laws and a Bachelor of Economics from Monash University.
Chris is the Managing Director of Alexander Funds and the primary Portfolio Manager of the Fund which comprises the majority of his time. Chris has more than 25 years of experience in the global fixed interest markets. he was Vice President of TD Securities in Toronto, Canada, where he operated a credit trading operation covering North American credits. he joined Development Bank of Singapore in 2002 as Senior Vice President where he ran North American and European Credit Trading before moving back to Australia in late 2006 with Challenger Financial Services. Chris founded Alexander Funds Management (previously Laminar Funds Management) in May 2009. Chris holds a Bachelor of Economics (honours) from Monash University.
Adam joined Alexander Funds Management in 2019. He has more than 15 years of portfolio management experience, with 10 of those as a senior portfolio manager within the credit markets. Previously, Adam acted as a Senior Portfolio Manager at VFMC managing their directly invested credit portfolio. He has experience in managing assets across multiple security types, including bonds, loans, structured credit and credit derivatives. Adam is a CFA charterholder and has a Bachelor of Business from Swinburne University.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.alexanderfunds.com.au/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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