GLOBAL ABSOLUTE RETURN government bond FUND

An actively managed alternative source of fixed income

An absolute return sovereign bond fund, allocating across G7 nations and selected highly rated countries, including Australia, with the objective of generating excess return, uncorrelated to traditional fixed income market benchmarks and risk assets.

More about the fund

PERFORMANCE

CC JCB Dynamic Alpha Fund

Delivering risk control and uncorrelated returns

Fund Documents

Product Disclosure Statement (PDS)

Additional Information

Target Market Determination (TMD)

Application Form

Additional Application Form

Fact Sheet

Performance Report

Investor Notices - PDS Updates - Class A

Investor Notices - PDS Updates - Class B

Investor Notices - PDS Updates - Class C

Annual Financial Statements

Interim Financial Statements

Overview

The CC JCB Dynamic Alpha Fund (the Fund) is designed as an absolute return product, that aims to deliver stable and consistent returns over time irrespective of share and bond market movements. The investment team applies a range of portfolio management and risk-controlled techniques to a universe of global high grade sovereign bonds (i.e. anchored by G7 nations, as well as other selected highly rated countries, such as Australia). It offers a high level of liquidity in Government issued instruments, without any corporate credit exposure.

Given the unconstrained nature of the Fund, JCB has access to a wider range of markets and financial instruments – using a combination of duration positioning (both long and short), interest rates curvature, cross market positioning, relative value and currency strategies. This provides a greater range of options to help generate superior risk-adjusted returns for investors.

WHY GLOBAL ABSOLUTE RETURN FIXED INCOME?

In the face of rising bond yields, ongoing inflation worries, and a volatile interest rate landscape, skilled fixed income investment managers can identify opportunities to capitalise on within the broader financial markets.

Absolute return fixed income strategies enable investors to benefit from these opportunities, without the risk of a negative market beta (or interest rate risk). This is one reason to look at absolute return fixed income.

Diversification – the Fund can be used to help diversify other exposures such as equities, credit or more volatile absolute return offerings as it is uncorrelated to traditional market benchmarks and risk assets.

Capital preservation – the Fund only invests in global high grade government issued assets, keeping the underlying asset pool of the highest quality with a lower risk of capital loss compared to other investments. The assets are unencumbered by benchmark relative constraints and this can help mitigate against periods of market volatility and potentially profit from them.

Income – by nature of the fixed income instruments in the portfolio such as government, Supranational or Public Finance Agency backed bond issuers provides the potential to earn regular income (usually semi-annual).

Highly liquid – the underlying markets of global high grade bonds and bond futures are liquid positions that in usual market conditions can be bought or sold by the Fund with ease.

“The strategy allows us to utilise a full range of financial instruments and to implement our investment ideas independently of the market environment and any index. We see this as an alternative solution in a world where the options for consistent income are credit based and often illiquid.”

Charlie Jamieson, CIO

Fund Details

* In order to carry out the investment strategy and achieve the objective set out above, the asset allocation and investment guideline target ranges may vary significantly from time to time.** The Base Fee is expressed as a percentage of the net asset value of the Fund relating to the Class A Units, reflected in the daily Unit price and payable monthly in arrears from the Fund. All figures disclosed include the net effect of GST and RITC.

Research Ratings

The following information is only available to professional advisers. By clicking the Agree button below, you confirm that you are a professional adviser.

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The rating issued 24 August 2023 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned 2 February 2024) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

RISKS

Refer to the Product Disclosure Statement for more information on risks. The key risks for the Fund include:

Investment risk – amounts distributed to unitholders may fluctuate.
Interest rate risk – the risk of rising rates on capital gains if bonds are realised prior to maturity.
Credit ratings risk – a rating downgrade could reduce the value of a security in which the Fund invests into.

Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’) is the Responsible Entity and issuer of units in the CC JCB Active Bond Fund ARSN 610 435 302, CC JCB Global Bond Fund ARSN 631 235 553 and the CC JCB Dynamic Alpha Fund ARSN 637 628 918 (collectively ‘the Funds’). The appointed Investment Manager is JamiesonCooteBonds Pty Ltd ACN 165 890 282 AFSL 459018 (‘JCB’). This information is provided by JCB. This information should not be considered advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling units in the Fund and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. For further information and before investing, please read the Product Disclosure Statement available on request.

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