YBR

Smarter Money Fund

Our savings solution lets you earn consistent income and targets higher returns. Breaking it down, when you put money on deposit with a bank, the bank uses part of that money to make loans and the interest rate you receive on your deposit is usually much lower than the interest rate the banks receive on loans. In most cases, you can end up getting short changed. So we created the Smarter Money Fund.

Smarter Money Investments

  • No fixed term
  • No entry or exit fees
  • Read the PDS before you invest
  • Strong performance
  • Minimum investment $1,000
  • Convenient access to your cash

Note that total returns will differ from the running yield of the fund because of changing interest rates, portfolio holdings & bond values.

Glossary

  • Running yield - is the weighted-average total annual yield (interest rate) of the portfolio divded by the portfolio valuation as at a specified date. This is calculated after deducting management fees and represents the annual income that will be earned from the deposits and bonds in the portfolio as at that date. It does not take into account any capital gains/losses
  • Total Return - includes interest and capital gains/losses, from the fund over a given period of time.

The Smarter Money Active Cash strategy  invests in a conservative portfolio of Australian bank deposits and Australian investment-grade bonds (mainly issued by banks). By aggregating individual investors' cash, the fund offers access to 'institutional' returns usually unavailable to retail investors. SMAC targets holding 30% of its investments in Australian bank deposits and RBA repurchase-eligible securities with the balance invested in Australian floating-rate bonds that generally move in line with the RBA cash rate.

The Smarter Money Active Cash strategy has been independently reviewed and rated by several research houses, including Mercer, Atchison Consultants and Australia Ratings. Please contact us to obtain copies of the available ratings reports. These ratings are only one factor to be taken into account when deciding whether to invest.

Is it for you?

You typically invest your savings in a variety of ways, including transaction accounts, your home, super, direct shares and term deposits.

The Smarter Money Active Cash strategy was not designed to replace bank accounts, but rather to complement them. It was built to:

  • assist younger Australians to grow their wealth
  • give investors diversification away from the volatility of the share market
  • supply retirees with regular quarterly income security
  • offer businesses cash-management opportunities that add value beyond the products offered by the banks

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Benefits

Conservatism

The Smarter Money Active Cash strategy will not invest in equities (listed or unlisted), non-Australian dollar-denominated or sub-investment grade debt or debt securities, fixed-rate debt or debt securities with a term to maturity of longer than 12 months, collateralised debt obligations, or non-prime mortgage debt or debt securities.

Regular, Low Volatility income

The Smarter Money Active Cash strategy aims to generate and distribute quarterly income to investors. It has low volatility compared with the cash-flows generated by riskier asset-classes, such as equities.

No Cap on your Returns

The Smarter Money Active Cash strategy does not cap or fix your returns. In addition, the investment manager is motivated to produce superior returns through a performance fee that is paid only if the Smarter Money Active Cash strategy delivers returns after all costs that are greater than its benchmark of the RBA cash rate plus 1% per annum.

No Penalties on Withdrawal

The Smarter Money Active Cash strategy will not penalise you if you wish to withdraw your money.

Fees

 

The Smarter Money Active Cash strategy fees are fully disclosed so there are no surprises:

  • There are NO Establishment, Contribution, Withdrawal or Termination Fees
  • The Smarter Money Active Cash strategy pays its 'administrators' a total Administration Fee of 0.25% p.a. of your account balance, including GST, to provide things like daily unit prices, performance estimates, your statements, and monitor the fund's compliance
  • The Smarter Money Active Cash strategy pays its investment manager, which oversees the fund's investment strategy, a fee of between 0.41% p.a. and 0.72% p.a. of your account balance including GST, based on your account size
  • If the Smarter Money Active Cash strategy produces returns above its target benchmark, which is equal to returns after all costs above the RBA's official cash rate plus 1% per annum, then the fund will pay its investment manager a 'performance fee' equal to 20.5%, including GST, of the net returns above the fund’s benchmark. This is designed to motivate the investment manager to outperform the fund’s target and create a better alignment of interests with you
  • Learn more about the fund’s fees by reading the PDS

Understanding Risk

Risk refers to the prospect of not meeting your goals, or losing money. All investments carry risk. Different strategies carry different levels of risk depending on the investments that make up the strategy.

Investments with the highest long-term returns generally carry the highest level of short-term risk.  While cash and fixed-income funds may invest significant sums in government bonds, bank deposits with government guarantees, and bank bonds, they are not guaranteed themselves and expose you to the risk of loss. Investments in Australian bank deposits greater than $250,000 can expose you to an individual bank’s credit risk, and therefore the risk of loss.

The significant risks of investing in funds like the Smarter Money Active Cash strategy generally include the risk that

  • The value of investments will vary,
  • The level of returns will vary, and future returns may differ from past returns,
  • Returns are not guaranteed and investors may lose some of their money,
  • Laws affecting funds may change in the future, and
  • Other risks to consider are market and credit risks.

The level of risk that is appropriate for you will vary depending on a range of factors, including age, investment time frame, where other parts of your wealth are invested, and your risk tolerance. If you are unsure whether this investment is suitable for you, we recommend you consult a financial advisor.

*Important information

Returns are net of fund fees over last 12 months. Other fees may apply – refer to the PDS. OneVue RE Services Limited ACN 101 103 011, AFSL 223271 (the “Responsible Entity”) is the responsible entity of the Smarter Money funds and is the issuer of the units in the Smarter Money funds and the Product Disclosure Statement (PDS) . The Responsible Entity has appointed Smarter Money Investments Pty Limited ACN 153 555 867 Authorised Representative number 414337 (“SMI”) as investment manager of the Fund. SMI is an authorised representative of Yellow Brick Road Investment Services Pty Limited ACN 003 990 627, AFSL 255016.

Yellow Brick Road Holdings Limited ACN 119 436 083, a company listed on the Australian Securities Exchange (ASX Code: YBR), is a major shareholder in SMI.

The information has been prepared by SMI. It is general information only and is not intended to provide you with financial advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The Product Disclosure Statement (PDS) for the relevant Smarter Money fund should be considered before deciding whether to acquire or hold units in it. None of the Responsible Entity, SMI, Yellow Brick Road Holdings Limited nor any of their respective shareholders, directors and associated businesses assume any liability to investors in connection with investment in the Fund, or guarantees the performance of any obligations to investors, the performance of the Fund or any particular rate of return. The repayment of capital is not guaranteed. Investments in the Fund are not deposits or liabilities of any of the above mentioned parties. The Fund is subject to investment risks, which could include delays in repayment and loss of income and capital invested. Investments can go up and down. Past performance is not indicative of future performance. To learn more about these risks, we strongly encourage you to read the Fund’s PDS and consult an independent legal and financial adviser.

Morningstar Rating: Copyright 2017 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at . You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). Rating Definition: The Morningstar Rating is an assessment of a fund's past performance - based on both return and risk - which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

Lonsec Rating: The Lonsec Rating (assigned April 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Smarter Monday Investments product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website.

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