Pro-active ETFs

Monthly Fund Update

Fund update: 29th February 2020

Pinnacle aShares Global Dynamic Income Fund (Managed Fund)

Highlights for the month

SAVE’s total return was -7.51% (including distributions, net of fees) for the month of February, and SAVE’s total return since inception to end of February was 1.02%.
SAVE distributed monthly income of 4 cents in February, which is equivalent to a monthly yield of 0.37%.

Investors should note that SAVE has only been in operation for 6 months (inception date of 27 August 2019) and there is no assurance that the performance for a full 12 month period will remain consistent with the part year performance to date.

The last week of February was very volatile for global stock markets as concerns over Covid-19 drove returns negative. SAVE continued to perform defensively against the MSCI World Index, with beta of 0.52.

The top 3 contributors to performance for the month of February were Fisher & Paykel Healthcare (New Zealand), Evolution Mining (Australia) and Barrick Gold Corp (Canada) with total contribution to return of 0.32%. The top 3 detractors from performance were H&M (Sweden), ITV (UK) and Pandora (Denmark) with the total contribution to return of -1.85%.

During February, the portfolio sold 6 stocks due to dividend cuts or higher correlation of these stocks to other stocks. The stocks sold were CI Financial Corp, Nordstom, ITV PLC, British American Tobacco PLC, Yamazaki Baking Co Ltd and Elders Ltd. The portfolio also bought 2 stocks due to stable dividend history, strong ROE and accruals. The stocks bought were BAE Systems PLC and Canon Inc. The portfolio also bought 2 bonds to rebalance portfolio risk.

Fund Performance

Objective yield is RBA Cash Rate + 4% p.a.
Inception date is 27 August 2019. Past performance is not a reliable indicator of future performance. Returns are calculated using the net asset value per unit at the start and end of the relevant period in AUD, with distributions reinvested, and net of applicable fees, costs and taxes (other than tax paid as an investor in the Fund). The returns also do not reflect the transaction costs imposed on the creation and redemptions of units, brokerage or spreads incurred by investors when buying or selling units on the ASX


Inception date is 27 August 2019.

Source: Pinnacle aShares.

Portfolio information

Top Portfolio Holdings

Portfolio Summary

Asset class

(% of portfolio)

Country weight

(% of portfolio)

Sector weight

(% of portfolio)

Credit rating

(% of bond portfolio)

Source: Pinnacle aShares. Data as at 29th February 2020.

Key Information

1. Consistent income above cash

Targeted income of cash + 4% income target with monthly dividends. Buy it like a share on the ASX

2. Diversified income source

Diversified by asset class and geography providing more sources of income

3. A smoother journey

Half the equity market risk (beta 0.5) means lower risk of capital loss relative to equity market (MSCI World Index)

Fund Features

  • Monthly income: target RBA Cash Rate + 4% p.a. (before fees)
  • Lower risk than equities: 0.5x Beta to MSCI World
  • Fund is actively managed at an attractive management fee of 0.5%
  • Daily disclosure of portfolio holdings
  • Minimum administration to invest: trade like a share on the ASX
  • Provision of liquidity by market maker

^Some of the assets held by ASX: SAVE are traded in overseas jurisdictions/markets which open and close at times which may differ from the Australian market. To enable a NAV to be provided on each trading day, the responsible entity of the fund and its appointed agents use a consistent NAV calculation methodology that best reflects the NAV at a point in time, given the constraints and time differences.
*Recoverable expenses are capped at 0.15% p.a. of the Fund’s net asset value. Recoverable expenses are the ordinary and everyday expenses incurred in operating the Fund and are deducted from the assets of the Trust as and when they are incurred. The expenses normally incurred in the day-to-day operation of the Fund include custodian, fund administration, unit registry, ASX and audit costs.
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. Past performance is for illustrative purposes only and is not indicative of future performance. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
This communication was prepared Pinnacle Investment Management Limited (ABN 66 109 659 109 AFSL 322140) (‘Pinnacle’). Pinnacle Funds Services Limited ABN 29 082 494 362 AFSL 238371 is the product issuer of the Pinnacle aShares Global Dynamic Income Fund (Managed Fund) ARSN 632 117 303 (‘the Fund’). Any potential investor should consider the relevant PDS before deciding whether to acquire, or continue to hold units in, a fund.
Past performance is for illustrative purposes only and is not indicative of future performance. Unless otherwise specified, all amounts are in Australian Dollars (AUD).
This communication is for general information only and was prepared for multiple distribution. This communication is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this communication nor anything contained in it forms the basis of any contract or commitment. Any offer or sale of securities are made pursuant to definitive documentation, which describes the terms of the offer (‘Offer Document’), which is available Prospective investors should consider the Offer Document in deciding whether to acquire securities under the offer. Prospective investors who want to acquire under the offer will need to complete an application form that is in or accompanies the Offer Document. The Offer Document is an important document that should be read in its entirety before deciding whether to participate in the offer. Prospective investors should rely only on information in the Offer Document and any supplementary or replacement document. Prospective investors should contact their professional advisers with any queries after reading the Offer Document. The information in this communication has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. The issuer is not licensed to provide financial product advice. Please consult your financial adviser before making a decision.
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