YELLOW BRICK ROAD HOLDINGS LTD 
By
20 September 2013
YBR Funds Management, a division of Yellow Brick Road Holdings Limited (ASX Code: YBR) ("Yellow Brick Road") has announced that its independently rated and recommended "active cash" fund, YBR Smarter Money, has exceeded $100 million in funds under management with around 500 investors. The result comes approximately 18 months since the fund's inception.
"Smarter Money has delivered a post-fee return of 6.8 per cent per annum since inception in comparison to bank bills, which have returned only 3.2 per cent per annum," said Darren Harvey, Senior Portfolio Manager for YBR Funds Management. "Smarter Money has produced this solid performance with low risk (or volatility) of less than 1 per cent annualized, which means it has provided robust "risk- adjusted" returns."
Smarter Money mainly invests in deposits and investment-grade floating-rate bonds, and is not permitted to invest in foreign issued bonds, unrated bonds, sub-investment grade bonds, hybrids, equities or fixed-rate bonds with maturities greater than a year. Its current portfolio weight to deposits is 65 per cent.
The average S&P credit rating on Smarter Money's bonds is currently AA-, which is in line with the major banks' ratings. In contrast to most other fixed-income funds, Smarter Money has little interest rate or "duration" risk because it is restricted to short-term deposits and floating-rate bonds.
"Smarter Money's portfolio managers take a very 'active' approach to investing its cash and bonds in order to minimise risk and achieve the best possible post-fee returns for investors," said Yellow Brick Road CEO, Matt Lawler. "Smarter Money was deliberately designed to offer investors superior returns in rising interest rate environments, which is normally when bond funds fare worst. The fund has been popular with our expanding branch network and online customers, and we are increasingly seeing independent financial planners utilise the fund to enhance the returns from the cash and fixed interest segments of their client's portfolios."
Smarter Money is currently available on four of the large investment platforms used by financial advisors for their clients, including Macquarie Wrap, Colonial, Asgard and OneVue.
Darren Harvey added that having established a strong track record in this sector for retail investors, "YBR Funds Management is now attracting wholesale and institutional investors into Smarter Money, including corporates and our first institutional super fund client."
YBR Smarter Money has an independent responsible entity and custodian, and all unit pricing is independently calculated every business day by fund administrator, FundBPO. YBR Smarter Money is also available through selected financial advisors, Yellow Brick Road branches and online at www.ybr.com.au/savings
For more information, contact:
Chelsea O'Donnell
PR Manager
Yellow Brick Road Wealth Management
T 02 8226 8202
M 0414 704 033
E Chelsea.ODonnell@ybr.com.au
Yellow Brick Road is a group of wealth management and financial services companies headed by Executive Chairman Mark Bouris. Yellow Brick Road offers tailored advice and services to Australians wanting to build financial security for the future. With its extensive neighbourhood based branch network, Yellow Brick Road is committed to delivering accessibility, quality financial advice and competition in the market. For more information visit www.ybr.com.au
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