Coolabah appoints Equity Trustees as RE for new quoted fund


Vic Jokovic

Coolabah Capital Investments (Retail) Pty (CCI) has selected Equity Trustees to act as responsible entity for its latest quoted fund offering.

The Coolabah Active Composite Bond Fund (Hedge Fund) is a dual registry (listed and unlisted) fund and will be available on Chi-X Australia – the first time CCI has launched a fund on Australia’s second largest securities exchange.

CCI is one of Australia’s leading active credit managers, responsible for managing over $6.5 billion. Its new quoted fund offers an active composite bond strategy, investing in a diversified portfolio of defensive assets of investment-grade quality, including cash, government bonds, senior and subordinated bonds and asset-backed securities. The Fund may also invest in over-the-counter derivatives for risk management purposes.

Russell Beasley, Executive General Manager, Corporate Trustee Services, said: “We are delighted to be working with Coolabah Capital Investments, our client since 2018, on its latest quoted fund launch in the Australian market.

“Quoted funds are great way for fund managers to tap into the booming retail investor market and for investors to access investment opportunities through their preferred platform, without all the cumbersome paperwork that is usually required.”

As specialists in fund governance and compliance, Equity Trustees has assisted with the launch of quoted funds in the Australian market since November 2020.

“We provide our expertise as responsible entity to assist managers to navigate ASIC and the exchange compliance processes, as well as the design features of the innovative dual registry structure delivered by Mainstream Fund Services,” Mr Beasley said.

Ying Yi Ann Cheng, Portfolio Management Director and Market Technicals Analyst, Coolabah Capital said: “We are delighted to introduce our market-leading, daily liquidity, long duration, Coolabah Active Composite Bond Fund (Hedge Fund) as a quotable product to the retail market. This was previously an institutional strategy for super funds that was not available to the public.

“Since the Coolabah Active Composite Bond Fund’s (Hedge Fund) inception in March 2017, it has returned 5.35% per annum after retail fees. That’s 1.37% above the Composite Bond Index’s 3.98% per annum return. It ranks in the top 2 strategies in Mercer’s Australian fixed-income (active) universe over the last 3 years to 30 April 2021.”

Chi-X Australia is the securities and derivatives exchange which is transforming the Australian investment market by delivering easy, cost-effective access to local and global investment opportunities.

Chi-X Chief Executive Vic Jokovic said quoted funds had become a strong trend in retail distribution.

“We are pleased to be adding the Coolabah Active Composite Bond Fund (Hedge Fund) and believe it will help to broaden the range of options for investors seeking a more defensive allocation for their portfolio,” he said.

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