The Australian Masters Yield Fund Series (‘AMYF’) provides investors with exposure to a portfolio of fixed income securities with attractive risk adjusted returns.
Fixed income securities allow diversification from other asset classes such as equities, commodities and property. From an investor’s perspective, fixed income securities can provide a lower level of capital risk and a more predictable income stream than equities in certain circumstances.
The 3 key investment objectives of the Companies are to:
- Provide investors an attractive rate of income and consistent dividends, which will be full franked to the extent possible, and the potential to receive capital returns throughout the life of the Companies;
- Minimise default risk by investing in products from issuers of sound credit quality;
- Minimise costs of the Companies.
Under each Company’s Management Agreement, the Manager is permitted to undertake investments on behalf of each Company in consultation with each Company’s Board.
The Manager is able to select fixed income securities that are:
- Primary and secondary market fixed income securities;
- Rated or unrated fixed income securities;
- Australian or international issuers of fixed income securities.
Potential investments include, but are not limited to:
- Senior bonds;
- Subordinated debt;
- Hybrid securities; and
- Structured income securities.