Daintree Capital | Product
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OUR PRODUCT

Daintree Capital through its absolute return Core Income Trust provides investors with a higher income than generally available through term deposit and banking products.

With the RBA Cash Rate at 1.5% many investors are looking for a higher return, but wish to remain conservatively invested. Daintree’s Core Income seeks to provide a solution to this dual objective.

We target a return of 1.5 – 2.0% (net of management fee) above the RBA Cash Rate, at the current time this is a total return between 3 – 3.5% pa (net of management fees). Whilst the RBA Rate will change through time, our targeted return above the cash rate will not.

A cornerstone of our investment philosophy is capital preservation. Our Core Income Trust invests in a high quality portfolio of fixed income securities, with an expected average credit quality rating of A+ of better. Daintree Core Income will typically hold up to 150 securities in its portfolio, it is through this high level of diversification that we reduce the risk of any single investment. Daintree does not invest in shares.

Unlike term deposits there is no requirement to select a term to maturity or to role your investment regularly, you simple remain continuously invested and in normal circumstances make additional investments or redemptions at your convenience.

Daintree has partnered with Perennial Investment Management Limited (Perennial) who together with associated companies manage over $7bn on behalf of retail and institutional investors. Perennial as Responsible Entity has appointed the National Australia Bank as Custodian of securities held in the Daintree Core Income Trust.

OUR OBJECTIVE

Daintree Core Income’s objective is to deliver a return 1.5 -2.0% pa (net of management fees) above the RBA Cash Rate.

With the current RBA Cash Rate at 1.5%, this results in Daintree Core Income Trust targeting a return to investors of 3.0 -3.5% pa (net of management fees).

Daintree Core Income is flexible in changing market conditions, as interest rates rise or fall through time our total return to investors will vary accordingly, but our target return will remain unchanged 1.5 -2.0%pa above the RBA Cash Rate.

QUICK FACTS

Objective:  RBA Cash Rate plus 1.5% – 2% pa (net of management fees)

Average Credit Quality:  A+

Portfolio Manager:  Mark Mitchell and Justin Tyler

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