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ALC Global Credit Fund

ARSN 668 390 994

A fund for investors who are looking for consumer seeking an income stream to be used as a core component of their portfolio.

Fund
Inception Date
23/11/2023
Return Since
Fund Inception Date
9.38% p.a.*
Fund
Size
A$23,834,630.66
as at 6 Jun 2024

Investment objectives

The Fund seeks to generate returns 2.5% per annum above the RBA Cash Rate after fees and expenses by investing in an actively managed portfolio of interest rate securities including corporate debt, hybrid securities and structured debt securities. The securities can be denominated in Australian Dollars, or other major currencies, which will generally be hedged back to Australian Dollars.

Key features

  • Talented and Experienced Team – leverage off 150 years of experience in our investment committee and management team
  • Daily Liquidity – in normal market conditions, access to funds daily
  • Credit Focus – designed with the aim to deliver stable returns with a credit focus rather than taking on rates volatility
  • Quarterly Income – designed with the aim to, and invested in securities that deliver regular income
  • Core Risk Management – AL Capital has Risk Management at its core, assessing and managing all risks of the portfolio

Summary Details

Unit Price: Entry: A$1.0767 Exit: A$1.0745 as at 6 Jun 2024
APIR Code: ETL3247AU
Investment Manager: AL Capital Holding Pty Ltd
Responsible Entity: Equity Trustees Limited
Minimum Initial Investment: A$25,000
Management Fee: 0.71% p.a.
Performance Fee: 0.00%
Buy/sell spread: + 0.05 /- 0.15%
Liquidity Daily (in normal market conditions)
Portfolio managers(s): Vincent Hua

For full details please see PDS below

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Performance*

 

 

Monthly Returns*

1 month3 month6 month Since Inception
ALC Global Credit Fund1.49%4.05%8.67%9.38%
RBA Cash Rate + 2.50%0.56%1.68%3.36%3.51%
Over/Under Performance0.93%2.37%5.30%5.88%

*Performance is reported net of all fees. Returns greater than one year are annualized. This information has been provided for illustrative purposes only. Past performance is not a reliable indicator of future returns.

Investment Strategy

The Fund’s investment strategy is to invest in a portfolio of interest rate securities that pay a fixed or floating rate of return. The Fund can invest in any interest rate securities including corporate debt, hybrid securities and structured debt securities such as RMBS and ABS. Investment in these securities will have the potential to deliver higher returns over the medium term compared to cash. The portfolio of securities will be primarily investment grade, with no more than 10% of the assets of the Fund being typically reserved for securities that are initially investment grade, however, have been subsequently downgraded to below investment grade.

AL Capital will seek to achieve the Fund’s investment objective by employing a range of active and dynamic investment strategies across the debt markets, both locally and internationally. The ability to source, understand and analyse the risk of the underlying securities and the issuers should enable a higher success of risk/return reward for investors. The portfolio takes advantage of the belief that the price of a security may differ from their intrinsic value at any point in time for a variety of reasons. For example, market dislocation through different supply and demand levels can impact the price of fixed income securities. Every time the price of a security is different from its intrinsic value there is an opportunity to benefit by taking steps to buy the security when the price is lower than the intrinsic value or to sell the security when the price is higher than its intrinsic value.

AL Capital attempts to construct a portfolio that will enhance an investor’s return from actively managing the portfolio of securities to capture these price volatilities and/or also use derivative instruments to capture price inefficiencies and risk management. AL Capital also believes that the investment manager’s main responsibility is to maximise returns on investors’ capital, subject to an acceptable level of risk. It is the job of fund managers to manage risk rather than avoid risk.

To create a balance of risk, return and, to a certain extent, liquidity in the Fund, the investment team will use the following investment criteria as part of the risk management process:

  • The gearing of the Fund will be limited to a net loan to valuation ratio of no more than 50% of the assets of the Fund;
  • Maximum exposure to the securities of any single issue is limited to 10% of the assets of the Fund;
  • No more than 10% of the assets of the Fund will be exposed to non-investment grade credits;
  • Maximum currency exposure is limited to 10% of the assets of the Fund;
  • No more than 50% of the assets of the Fund will be invested in structured debt securities (which include RMBS or ABS) at any one time; and
  • The Fund may invest in “fixed-rate” instruments and as such will carry a higher interest rate risk (or duration) than it would otherwise. This risk is managed (including using Derivatives) so that the average interest rate risk of the Fund is no more than two years. The Fund may use Derivatives to manage exposure to relevant markets or foreign currencies and to manage investment risk.

Updates & Reports

Monthly Investor Update

 

Prices & Distributions

Unit Price History

DateEntry (A$)NAV per unit (A$)Exit (A$)
6 Jun 2024$1.0767$1.0762$1.0745
5 Jun 2024$1.0759$1.0754$1.0738
4 Jun 2024$1.0749$1.0743$1.0727
3 Jun 2024$1.0740$1.0734$1.0718
31 May 2024$1.0736$1.0731$1.0715
30 May 2024$1.0729$1.0724$1.0708
29 May 2024$1.0714$1.0708$1.0692
28 May 2024$1.0718$1.0712$1.0696
27 May 2024$1.0706$1.0701$1.0685
24 May 2024$1.0698$1.0693$1.0676

 

Distribution History

DateCents per share
31 Mar 2024$0.02

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the ALC Global Credit Fund (“the Fund”). 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).

The Investment Manager for the Fund is AL Capital Holding Pty Ltd (“AL Capital”) ABN 29 613 750 682, AFSL 523648. This publication has been prepared by AL Capital 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 take action on specific issues in reliance on this information. Neither AL Capital, Equity Trustees nor any of its related parties, their employees or directors, provide and 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 Product Disclosure Statement before making a decision about whether to invest in this product.

ALC Global Credit Fund’s Target Market Determination is available https://www.eqt.com.au/insto. A Target Market Determination describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.

 

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