The Yarra Enhanced Income Fund has been awarded a “4 IP” rating from Research IP with a score of 3.98/5.
The Yarra Enhanced Income Fund (“the Fund”) is an Australian domiciled registered managed investment scheme which pools the money of individual investors. The Fund is substantially invested in the Yarra Enhanced Income Pooled Fund of which YFM is also the responsible entity.
The Fund may be suitable to investors that have a ‘medium term’ investment time frame (i.e. a recommended minimum term of 3 to 5 years), who seek returns that are in line with the objective of the Fund and who have a risk tolerance in line with the Fund’s summary risk level.
What is the Fund’s competitive advantage?
Qualitative Research Report and Data Tear Sheet
Research IP says
“The Fund has quite a broad universe of securities available for investment. In practice, it predominantly focuses on a narrower range of fixed income sectors, namely: Cash, Senior, Subordinated, Tier 2, Tier 1, Asset/Mortgage Backed, with the latter being a more opportunistic segment rather than a core holding. In order to be successful in this style of fund, the investment team needs specialised experience in these sectors and a strong network of research and trading relationships with key market players (investment banks, brokers, other investors).”
“In Research IP’s opinion, Roy Keenan has a highly developed set of skills in these key sectors (and others) built up over an almost 4-decade career in the markets both at Yarra (32 years) and other notable institutions such as Goldman Sachs. This, along with Yarra’s significant size and reach, brings with it a market presence that provides benefits to the investment team such as: ability to provide input (such as pricing) to new-issue deals at their formative stages, “seeing” most of the deals coming to market (whether or not they are investing), achieving workable allocations to oversubscribed transactions, access to issuer management, and access to key research analysts and deal-makers with the issuing syndicate.”
“Research IP agrees that the market segments focused on for this Fund tend to be less efficiently priced that the traditional, highly liquid sectors of governments and semis. This means that the heavy emphasis on careful, detailed credit and structure analysis can unveil alpha opportunities to the benefit of investors. In our opinion, the Manager’s contention that the majority of value-add comes from income and credit spread (90%) is a reasonable one.”
Research IP, 24 April 2024
If you have any questions in relation to this report or the Research IP services, please contact us here.
Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.