Monthly Fund Update
Highlights for the month
As shown in the table, Z3RO’s income exceeded the RBA Cash Rate return for November. The main contributors to performance came from major Australian bank NCDs in addition to ING and ME Bank NCDs and VW CP, with an even spread across 1 to 3-month maturities, but a slight lengthening of the weighted average duration of the portfolio relative to the previous month.
Market pricing of NCD rates during the month has reflected some likelihood of further cash rate cuts in the period ahead with a strengthening of views that the RBA may eventually cut the official cash rate to 25bps. RBA Governor Lowe provided market guidance that the RBA could possibly go below 50bps (and indeed embark on a QE program) if it was warranted by economic conditions, in his speech at the Australian Business Economists Dinner in Sydney on November 26, 2019.
A distribution of 3.91 cents was declared at the end of November.
|Fund Float||Benchmark Float||Difference Float||Fund (%)||Benchmark (%)||Difference (%)|
|3 years (pa)||0.00||0.00||0.00|
|5 years (pa)||0.00||0.00||0.00|
Benchmark is Reserve Bank of Australia (RBA) Cash Rate.
Inception date is 27 August 2019.
Past performance is not a reliable indicator of future performance. Returns are quoted in AUD and net of applicable fees, costs and taxes.
|Effective duration (yrs)||0.20|
|Average yield to maturity (%)||1.07|
|Weighted average maturity (yrs)||0.20|
Top Portfolio Holdings
|Rank||Type||Country||Description||Sector||Rating||Weight (%)||Weight (%)|
|1||Money||AU||ME NCD 27/12/2019||Financials||BBB||0.219635749468710||21.96|
|2||Money||AU||VW CP 06/01/2020||Financials||BBB+||0.199526316752990||19.95|
|3||Money||AU||ANZ NCD 29/01/2020||Financials||AA-||0.199521001734420||19.95|
|4||Money||AU||NAB NCD 27/02/2020||Financials||AA-||0.199377136570030||19.94|
|5||Money||AU||ING NCD 27/05/2020||Financials||A+||0.168680806275850||16.87|
Short term credit quality breakdown
(% of portfolio)
Long term credit quality breakdown
(% of portfolio)
(% of portfolio)
Source: Pinnacle aShares. Data as at 30th November 2019.
1. Zero management fee
First Australian ETF with no management fee* keeps more in your pocket
2. Better than cash yield
Targeting higher yield than the RBA Cash Rate via a dynamically managed cash ETF
3. Flexibility in one trade
Simple and secure way to invest and access your cash
- Zero management fee
- Fund is actively managed targeting monthly income above RBA Cash
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*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.
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 Dynamic Cash Fund (Managed Fund) ARSN 632 118 720 (‘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).
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