October, 2020
The duration of the portfolios was held towards the longer end of the permitted range throughout the month. This strategy added value as bank bill yields came under downward pressure. The funds also continued to earn reasonable income on selected investments that yield in excess of bank bill swap rates. Additionally trading margins on the funds’ holdings in residential mortgage backed securities continued to tighten, which further supported overall performance.
The past few weeks and months have been an extraordinary period for Short Term Investments markets. Throughout, we have focused on capital preservation and the funds’ ability to provide high levels of liquidity for investors. The types of securities the funds invest in have been largely unchanged, and have generated attractive returns versus the benchmark.
While nominal interest rates have been reduced to all-time lows, we continue to believe the investment process employed will continue to deliver attractive, risk-adjusted relative returns. The funds are expected to continue to generate a margin of interest over and above the benchmark and extend their favourable long-term performance track records.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FSI-Cash-Funds-Flyer.pdfSeptember, 2020
The duration of the portfolios was held towards the longer end of the permitted range throughout the month. This strategy added value as bank bill yields came under downward pressure. The funds also continued to earn reasonable income on selected investments that yield in excess of bank bill swap rates. Additionally trading margins on the funds’ holdings in residential mortgage backed securities continued to tighten, which further supported overall performance.
The past few weeks and months have been an extraordinary period for Short Term Investments markets. Throughout, we have focused on capital preservation and the funds’ ability to provide high levels of liquidity for investors. The types of securities the funds invest in have been largely unchanged, and have generated attractive returns versus the benchmark.
While nominal interest rates have been reduced to all-time lows, we continue to believe the investment process employed will continue to deliver attractive, risk-adjusted relative returns. The funds are expected to continue to generate a margin of interest over and above the benchmark and extend their favourable long-term performance track records.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FSI-Cash-Funds-Flyer.pdfticker: PIM3425AU
commentary_block: Array
factsheet_url:
https://www.firstsentierinvestors.com.au/au/en/institutional/performance/literature.html
Under Short Term Investments
asset_class: Cash
asset_category: Australian Cash
peer_benchmark: Cash - Australian Cash Index
broad_market_index: RBA Cash Rate Target Index
structure: Managed Fund