Diversified Australian Fixed Income Fund

The Diversified Australian Fixed Income Fund (DAFIF or the Fund) objective is to outperform the Bloomberg Ausbond Composite 0 + Yr Index over rolling 5-year periods (net of fees).

The Fund is an active multi-manager, multi-strategy fund that uses a core-satellite portfolio construction philosophy to provide a diversified exposure to domestic fixed income.

Units will be issued at a price equal to the net asset value (NAV) of the Fund adjusted for estimated transaction costs (also described as Buy Spread), divided by the number of Units on issue at the relevant time. At the date of the new PDS effective 28 February 2025, the Buy Spread is 0.03% (or 3 basis points), and Sell Spread is 0.09% (or 9 basis points).

The minimum initial investment is $5,000 and thereafter in $1,000 increments.

The minimum suggested time frame for investment in the Fund is at least 5 years.

What are the benefits of investing in the Fund?

  • Access to specialist fund managers: Professional management through a set of experienced Underlying Investment Managers. The Underlying Strategies in which the Fund invests may not be available to Australian retail investors directly.

  • Portfolio management expertise: Active monitoring and investment manager selection with the objective of providing enhanced returns and risk management.

  • Diversified exposure to domestic fixed income: The Fund provides diversified exposure to the domestic fixed income asset class. Investing with multiple fund managers has the potential to mitigate risks associated with investing with single-manager funds.

  • Quarterly income: Potential for quarterly income from the domestic fixed income asset class.

  • Lower minimum transaction requirements: A retail investor will be able to gain an indirect exposure to the Underlying Strategies of the Fund for a minimum investment of $5,000 in the Fund. Additionally, there is no minimum withdrawal amount.

Target Market Summary

This product is intended for use within a core holding (up to 75%) for a consumer who is seeking capital growth and income distribution and has a medium risk and return profile for that portion of their investment portfolio. It is likely to be consistent with the financial situation and needs of a consumer with a medium-term (5 years) investment timeframe and who is unlikely to need to withdraw their money on less than five business days’ notice.