YELLOW BRICK ROAD HOLDINGS LTD
21 July 2014
Yellow Brick Road Holdings (ASX: YBR) is pleased to announce that Morningstar's 30 June 2014 data show that the YBR Smarter Money Fund (Smarter Money) has convincingly outperformed competing cash and active cash products over every measurable period since its inception in February 2012.
"The latest Morningstar results highlight that Smarter Money's post-fee returns have consistently beaten the
"top quartile" (or 75th percentile) and "median" (50th percentile) peer fund over the 3 months, 6 months,
12 months, and 24 months to 30 June 2014," said Senior Portfolio Manager Darren Harvey.
The chart below compares Smarter Money's post-fee returns to the top quartile, median, and bottom
quartile funds in Morningstar's Australian "short-term fixed-interest" universe over every available period to
30 June 2014.
Whereas Smarter Money returned 4.3 per cent annually after all fund fees over the year to 30 June 2014, the median short-term fixed-interest fund returned 3.5 per cent. Over the same period the UBS Bank Bill Index delivered 2.7 per cent while the average term deposit offered 3.0 per cent.
"Savers are really struggling to secure returns that significantly exceed the cost of living with record low interest rates," said Yellow Brick Road CEO Matt Lawler. "And this search for yield is intensifying as every day banks shave deposit rates as their funding costs fall further on the back of booming credit markets and central bank liquidity infusions."
Morningstar's "short-term fixed-interest" universe includes 42 products with approximately 25 unique funds
that have attracted around $7 billion in retail assets.
Smarter Money's "active cash'' strategy, which has been proven in a range of financial market conditions, invests its capital across Australian deposits and "investment grade" floating-rate (mainly bank) notes with a target average "A" credit rating from Standard & Poor's.
Since its inception in February 2012, Smarter Money has held, on average, 55 per cent of its portfolio in
Australian deposits with the remainder diversified across highly liquid Australian floating-rate notes.
"By avoiding traditional "fixed-rate" bond risks, Smarter Money was designed to deliver superior performance in both rising and falling interest rate climates," said Mr Harvey.
Smarter Money, which is rated and recommended by several independent researchers (and available on numerous platforms), is not allowed to be leveraged or invest in:
Foreign bonds
Sub-investment grade bonds
Unrated bonds
Fixed-rate bonds (with maturities over 12 months)
Convertible preference shares (ie, hybrids)
Equities
Derivatives for speculative purposes
Smarter Money has an easy online application facility and no fixed investment term or fees when you invest/withdraw money. You can make withdrawal requests at any time and cleared funds are typically available within 5 business days.
Smarter Money has an independent responsible entity, independent fund administrator, and independent custodian. There are independent unit pricing and asset valuations every business day with earnings accrued daily and paid quarterly.
While Smarter Money is not a bank deposit, it can complement and diversify your existing savings accounts, term deposits, fixed-income holdings and superannuation savings.
For more information, contact:
Chelsea O'Donnell
Head of Marketing & Communications
Yellow Brick Road Wealth Management
T 02 8226 8202
M 0414 704 033
E Chelsea.ODonnell@ybr.com.au
YBR Funds Management is an independent asset manager established in 2011. Our first "active cash" solution, called Smarter Money and launched in February 2012, has grown to over $135 million. Our comparative advantages are in active cash management, active bond selection, active fixed interest securities selection and minimising credit and interest rate duration risks. We believe that there is a significant role for liquid active cash and low duration fixed interest to play in both individual and institutional portfolios. Our portfolio managers have over 40 years of experience and are augmented by an institutional-sized credit research capability that focuses on identifying and mitigating downside risks. For more information visit www.ybrfm.com.au
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