Global Dynamic Income Fund
Say goodbye to low yield and concentrated income risk and hello to SAVE; a globally diversified income active ETF with bond-like stability and equity-like returns.
1. Targeted income of cash + 4%
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)
Did you know?
That dividends on Australian shares alone make up more than 5% of all Australian household income?
This high figure, much higher for many retirees, is a function of two built in ‘biases’ amongst Australian investors.
Australian investors have two 'biases'
Home country 'bias'
Despite the barriers to international investing (such as cost and access to information) coming down in recent years, investors still exhibit a home country bias to their investment portfolios. This is most pronounced in Australia where as much as 70% of an investor’s share portfolio is made up of Australian shares despite the market cap of all ASX listed companies only being 3% of global market cap.
Australian investors have two 'biases'
Equity income 'bias'
Australian investors have a high concentration to Australian shares relative to more diversified instruments like ETFs and within that Australian share category, they have a high concentration to Australian bank shares, making up 4 of the top 5 shares by weighting in the average SMSF portfolio.
SAVE makes it easy for you to diversify your income sources by asset class and geography.
SAVE invests in a variety of income generating assets diversified across geographies and asset classes, which is important as it gives the strategy consistency of income not reliant on any one source.
Income is achieved across equities, fixed income (government and corporate bonds) and income earned from hedging non-Aus asset exposures into AUD where the Australian interest rate is higher than the interest rate of the foreign asset (FX hedge carry).
The portfolios asset allocation is dynamic and carefully monitored and adjusted to produce an optimal, yet consistent level of income for investors.
Targeted consistent income above the cash rate (cash + 4%) paid monthly
In today’s low-yield environment, Australian investors seeking income are wise to invest beyond the traditional domestic cash and fixed income products which are no longer generating satisfactory levels of income.
SAVE is a highly diversified global multi-asset portfolio which is designed to provide superior yield for investors, aiming to deliver consistent income of 4% above the RBA Cash Rate and pay monthly dividends.
Access the benefits of diversification for a smoother journey
SAVE offers the ability to move outside the ‘efficient frontier’ of single asset class investing. By combining the diversification benefits of global and local bonds and equities, together with conservative security selection, SAVE enables investors to reach their income needs but with lower volatility, enjoying a smoother journey while invested.
SAVE is designed and constructed to provide superior and consistent returns for investors with less risk than the equity market.
The portfolio has a beta of 0.5 relative to the equity market, meaning it has roughly half the equity market risk. The diversified nature of the portfolio reduces the volatility and risk of a capital drawdown and allows for a smoother journey of stable returns for investors.
^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.
About the investment manager, Omega Global Investors
Omega is a specialist investment manager, offering outcomes oriented investment solutions to investors.
Established in 2008, Omega is a majority employee owned specialist investment manager with a management team who have over 100 combined years of experience delivering outcomes for investors globally.
Omega’s motto is to begin with the end in mind and Omega believe investors aims are best fulfilled by having portfolios that are intelligently designed with a specific outcome or performance objective in mind.
Omega believes that market capitalisation benchmarks are in the main inefficient, and are not a true reflection of investor needs, particularly in terms of risk control and diversification.
Omega’s investment professionals have experience in delivering investment solutions for institutional and retail investors around the world, covering global markets across bonds, equities, derivatives and currencies.
Omega believes a robust approach to risk management coupled with an outcomes focused approach to portfolio construction is essential to fulfil their aim of delivering on the investment objectives for investors.
SQM Research Rating
SQM Research has issued a superior (4 1/4 stars) rating of the Pinnacle aShares Global Dynamic Income Fund (Managed Fund).
“In SQM Research opinion, the investment strategy and implementation is robust, logical and systematic. There is little manual override, with the research focus being on identifying and improving the application of the factor models. Risk management is built into the system. The investment process is likely to achieve the targeted income and risk outcomes.”*
Please note this report has been prepared for financial advisers only.
How to Invest
SAVE is now trading on the ASX, which means you can buy and sell SAVE in the same way you would trade shares in other ASX-listed companies.
*This rating 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.