Stable Yield
The Fund has negligible interest-rate risk (being a predominantly FRN portfolio).
Coolabah Global Floating-Rate High Yield Fund
17th February 2025
Inception Date
AU$156.2M
FUM
6.95% as
Yield
1.00%.
Management Fees
Monthly
Distribution
Nill
Minimum Subscription
×
Coolabah Global Floating-Rate High Yield Fund
The Fund was launched in early 2025 and has a short, but satisfactory, track record. It is a portfolio of global investment-grade senior and Tier-2 bonds and cash securities issued in G10 currencies by global banks and insurers. It has the capacity to invest in government, corporate and hybrid securities. Leverage is applied up to a maximum of 400% of total gross exposure.
Investment Objective
The Coolabah Global Floating-Rate High Yield Fund’s objective is to provide investors with exposure to a portfolio of global and Australian investment-grade, floating-rate notes/bonds with enhanced yields. The Fund had a running yield of 6.95% p.a. (before fees and expenses) as of July 2025 which will vary over time based on global 3-month benchmark money market rates and credit spreads applicable to the sector. The target return is a function of 2 components. The first component is coupons received over the tenor of the bond (the ‘running yield’). The second is the expected capital uplift based primarily, but not solely, on the price discount provided in primary market issuances.
Key Features
The Coolabah Global Floating-Rate High Yield Fund offers unique advantages for investors seeking steady returns
Market-Driven
Target returns for the Fund are not fixed and will vary based on credit market conditions. The key drivers of realised returns are market inflation expectations, movements in cash rates, swap rates, and credit spreads of Fund holdings.
Enhanced Returns
The investible universe for the Fund has historically exhibited strong returns per unit of risk, low default risk, and high liquidity. Thus, the underlying portfolio is well-suited to being geared to enhance returns. However, the high level of leverage does create material mark-to-market volatility/drawdown risk. Historical back tests show these risks are comparable to global high-yield bonds while providing better hypothetical returns.
Performance Track Record
Data-driven investment decisions backed by comprehensive market analysis
| Period | Gross | Net | Benchmark | Excess |
|---|---|---|---|---|
| 1 month | 1.20% | 1.10% | 0.43% | 0.77% |
| 3 months | 3.65% | 3.37% | 1.46% | 2.19% |
| Inception | 3.36% | 2.85% | 2.18% | 1.18% |
Returns are gross of fees. Benchmark is Bloomberg AusBond Credit FRN 0+ Yr Index Source: Coolabah Capital Investments
Investment Details
| Features | Coolabah Global Floating-Rate High Yield Fund |
|---|---|
| Return (since inception) | 2.85% p.a. |
| Income distribution | Monthly |
| Minimum Investment | Nil |
| Volatility | 2.6% |
| Annual Running Yield | 6.95% (as of July 2025) |
| Investment Universe | Senior and subordinated FRNs or bonds issued by global banks and insurance companies, government bonds, corporate bonds and hybrid securities |
| Benchmark | Bloomberg AusBond Credit FRN 0+ Yr Index |
Investment Expertise
An experienced team drives the investment strategy with deep expertise in high-grade credit and active fixed-income management.
CCI’s investment process is singularly focused on identifying mispricing in liquid, generally investment-grade, credit securities that have a high probability of reverting to CCI’s modelled fair-value target. The latter is designed to generate capital appreciation to augment the income paid by those securities.
CCI uses both top-down and bottom-up analyses as well as qualitative and quantitative valuation techniques. They have developed 60-80+ proprietary quantitative systems/valuation models that can interface directly with Bloomberg. These qualitative/quantitative models estimate ‘fair value’ credit spreads, adjusted for all bond risk factors (rating, maturity, liquidity, default risk, capital stack position). As credit spreads normalise/mean-revert, CCI generates capital gains on top of the interest paid on the bond. The Manager attributes most of the value added (75%) to quantitative and qualitative fundamental valuation analysis.
| Team Me | Role | Experience |
|---|---|---|
| Christopher Joye | CEO, CIO and Senior Portfolio Manager | Christopher is a financial economist and funds management professional. He has led the investment team since its inception. His prior experience includes Goldman Sachs (M&A) and the RBA in special projects. He also established the quantitative research group Rismark, which managed asset-backed securities. |
| Roger Douglas | Deputy CIO, Senior Portfolio Manager and Co- Head of Interest Rates Trading | Roger Douglas joined Coolabah in 2022 as a Senior Portfolio Manager based in the London and Sydney offices. Roger was previously jointly responsible for EUR30BN in credit strategies at Deutsche Asset Management as a portfolio manager and Co-Head of Fixed-Income Solutions EMEA. |
| Ashley Kabel | Deputy CIO, Portfolio Manager and Quant Analyst | Ashley joined CCI in 2017. She was the Director of Quantitative Strategies at The Cambridge Strategy in London between 2012 and 2016, and prior to that, she was an investment analyst with PM responsibilities covering FX, equities and fixed-income. |
| Fionn O’Leary | Head of US and European Trading & Senior Portfolio Manager | Fionn joined Coolabah in 2023 as a Senior Portfolio Manager based in London. Fionn previously spent over a decade in various senior interest-rate trading roles at Deutsche Bank in London, where he originally started his career in 2002.. |
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