Ellerston Capital is pleased to announce that the Ellerston Fixed Income Target Return Fund (Fund) has been awarded a Superior rating (4 stars) from SQM Research. This rating reflects SQM’s high regard for the Fund’s investment approach, risk management framework, and the expertise of its investment team.
Launched in August 2024, the Fund aims to deliver an attractive and stable income return targeting a net return of 2.5% above the RBA 6-month Term Deposit Index, while maintaining a low correlation to growth assets and credit returns, whilst providing investors with high levels of liquidity.
The Fund provides a differentiated return profile compared to traditional fixed income investments by enhancing a core portfolio of highly liquid Australian Government and investment-grade credit bonds with Alternative Risk Premia (ARP) across various fixed income markets. ARP exposure is accessed through Total Return Swaps, offering an uncorrelated return stream by isolating numerous sources of risk and return within the bond market—distinct from conventional interest rate or credit spread exposures. These premia encompass factors such as carry, credit, term, liquidity, volatility, and relative value, providing a unique approach to fixed income diversification.
Managed by a highly experienced investment team, the Fund is led by Vimal Gor, Head of Fixed Income and Multi-Asset, supported by Thomas Ciszewski and Dr. Ainslie Yuen, and backed by Ellerston Capital’s broader 32-person investment team.
The Fund’s investment team’s top-down macroeconomic analysis is a key component of their investment decision-making process, utilising proprietary in-house models that integrate both fundamental and technical analysis to provide a comprehensive view of the investment landscape. This approach enables the team to identify optimal exposures for the Base and ARP Portfolios.
Commenting on the SQM rating, Vimal Gor said, “We are delighted to receive SQM Research’s 4-star Superior Rating, which we believe is a testament to our disciplined investment approach and robust risk management. In a market where investors seek income without excessive risk or credit exposure, our Fund provides an attractive alternative with strong liquidity, downside protection, and uncorrelated returns. Through the Ellerston Fixed Income Target Return Fund, we are providing investors with a modern approach to fixed income portfolio management.”
The Fund’s investment universe comprises cash and fixed income securities, Australian government and investment-grade bonds within the Financials sector, and short-term money market instruments. Importantly, the Fund does not invest in sub-investment grade (high yield or “junk” bonds), non-Financial sector bonds, emerging market bonds, or subordinated debt within the Financial sector due to their elevated default risk and potential for significant price volatility.
With an active and risk-aware approach to fixed income investing, the Ellerston Fixed Income Target Return Fund is well-positioned to offer investors consistent and risk-adjusted returns in various market environments.
For more information on the Ellerston Fixed Income Target Return Fund, please visit Ellerston Capital’s website.
If you would like a copy of the SQM Research report, please contact Lisa Salamon.
Contact Us
For more information on how to invest, please contact:
Lisa Salamon
National Account Manager
E. lsalamon@ellerstoncapital.com
T. +61 406 585 322
W. ellerstoncapital.com
Disclaimers
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
Ellerston Capital Limited ABN 34 110 397 674 AFSL 283 000 is the responsible entity for the Ellerston Fixed Income Target Return Fund (ARSN 681 431 452). The information supplied above has been prepared by Ellerston Capital Limited without taking account of the objectives, financial situation or needs of investors. Before making an investment decision about any Fund persons should obtain advice from an appropriate financial adviser, consider their own individual circumstances and obtain a copy of the relevant Product Disclosure Statement for the Fund which is available on www.ellerstoncapital.com