OUR INVESTMENT OBJECTIVE

Regular monthly income with medium risk exposure.

The Fund aims to provide regular monthly income with medium risk exposure. Established to provide our investors with a target return of 4.0% p.a. over the RBA official cash rate, the Diversified High Income Fund is an income fund that invests in cash, “fixed income” type securities, trusts investing in direct property or mortgages and other managed funds.

CAPITAL PRESERVATION AND RETURN
    • Portfolio assets assessed under strict credit tests
    • Key objective is capital preservation with regular income
    • Mistakes compromising capital preservation not tolerated
    • Benchmark return is RBA cash rate + 4% net of fees
LIQUIDITY
    • Emphasis on assets that can be readily bought and sold
    • Liquidity actively assessed and managed
    • We use range of brokers and market sources for assets
DIVERSIFIED PORTFOLIO
    • 25-30 assets typically held
    • Assets range across senior secured, senior, and bank capital instruments, mortgages and Property Trust investments
    • Portfolio diversified across income, maturity, sector, and credit
RISKS
    • Credit, term, liquidity risks managed rigorously
    • Mistakes compromising capital preservation not tolerated
PERFORMANCE
    • Fund only started operating in August 2019
    • Seek to emulate return and capital stability record of the Prime Value Enhanced Income Fund
NET RETURN SINCE INCEPTION

5.36% p.a *as at 31 May 2022

Performance figures have been calculated in accordance with the Financial Services Council (FSC) standards and are net of management fees. No allowance has been made for taxation. Performance assumes the reinvestment of income distributions. Past performance is not necessarily an indicator of future performance.

KEY FEATURES

The Diversified High Income Fund offers investors an alternative way to invest their cash primarily in the ‘fixed income’ market that provides a higher return investing in selected securities available. Like the Enhanced Income Fund, the Diversified High Income Fund has a “fixed income” type of risk associated with it as well as investments in property markets to help it achieve an even higher return.

The target return of the fund is 4.0% over the RBA official cash rate. The fund allows investors to diversify their cash, equity and property investments. The fixed income market comprises securities that have a low market price correlation to equity and property prices. The higher returns available through the Fund come with an increased risk compared to the Prime Value Enhanced Income Fund however the higher risk profile is carefully managed so as to minimise the chance of permanent capital losses.

Furthermore, the Fund is managed in a way that avoids any market disruptions or major market events so that we can always enable our investors to redeem their capital quickly.

FUND DETAILS

Feature
Fund Facts
Objectives

The Fund aims to provide regular monthly income with medium risk exposure.

Recommended Investment Term

1 - 2 years

Interest Rate Reset

The interest rate on securities in the investment portfolio resets on average every 3-6 months

Management Fee

0.85% p.a.*

Performance Fee

15% of net performance above the RBA Cash Rate + 4% pa

Distribution

Monthly in cash or reinvestment option is available, generally paid within 5 business days
after the end of month

Minimum Investment

$50,000

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FUND Performance

Performance figures have been calculated in accordance with the Financial Services Council (FSC) standards. No allowance has been made for taxation. Performance assumes the reinvestment of income distributions. Past performance is not necessarily an indicator of future performance.
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WE BELIEVE

Building wealth together is the heart and soul of Prime Value

TRUE STEWARDSHIP

Putting our clients first.

ALIGNMENT OF INTEREST

Prime Value has been co-investing with its investors since 1998. Building wealth together.

INDEPENDENCE & TRANSPARENCY

We are not aligned with the major financial institutions, allowing us to act in our investors' best interests with an eye on the long term.

RISK MANAGEMENT

Protecting clients' capital in difficult markets by minimising mistakes.

CULTURE

An inclusive and collaborative culture built around humility and passion for investment. This is reflected in the longevity and stability of the management and investment team.

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