Smarter Money outperforms competitors over all periods in 2013

Morningstar data shows that YBR Funds Management’s Smarter Money fund, which is offered by Yellow Brick Road, significantly outperformed competing cash and bond funds over the past 3, 6 and 12 months as at 31 December 2013.

Smarter Money is a fund with an “active cash” strategy that invests in Australian deposits and “investment

grade” floating-rate bonds with an average credit rating of “A” from Standard & Poor’s. It is designed to thrive in both high and low interest rate environments by avoiding interest rate duration risks and offers diversification across 18 deposit-taking institutions.

Smarter Money generates outperformance by actively negotiating the deposits it invests in and through active selection of its high-quality bonds.

Yellow Brick Road’s head of investment products, Rob Morton, said, “Smarter Money produced superior returns to both the median and top quartile investment fund in the ‘short-term fixed-interest’ and ‘Australian bonds’ categories over the past 3, 6 and 12 months as at 31 December 2013.”

“Smarter Money also materially outperformed bank bills, its investment objective, which is the RBA cash rate plus 1% after fees, and the typical term deposit and savings account,” he said. “In total, this analysis includes 83 funds, and it’s important to note that different products and asset classes carry different degrees of risk.”

Darren Harvey, Executive Director of YBR Funds Management, said, “We are delighted to have been able to deliver our investors with consistently superior returns over the two years since Smarter Money’s original launch.”

“We strive to add value to our investor’s returns by actively managing our deposit and floating-rate bank bonds while maintaining our persistently very low risk profile,” he said.

Mr Morton added, “We have found that Smarter Money appeals to a diverse range of investors from mums and dads to super funds, high net worths, and corporates looking for their cash to work harder for them.”

Smarter Money has an independent responsible entity, independent fund administrator, and independent custodian. There are independent unit pricing and asset valuations every business day, with earnings accrued daily and paid quarterly.

Smarter Money is not a bank deposit, it is a managed fund that can complement and diversify existing savings accounts, term deposits, fixed-income holdings and superannuation savings.

Smarter Money does not use gearing or invest in fixed-rate bonds, foreign bonds, sub-investment grade bonds, unrated bonds, equities, or any YBR securities.