Elstree Investment Management Limited

AFSL 225721

Elstree Enhanced Income Fund

Overview

The Elstree Enhanced Income Fund invests in a diversified portfolio of listed floating rate credit securities called hybrids. The Fund is designed primarily for investors who are seeking to earn a rate of return above the bank bill rate of return but are prepared to accept a small degree of capital risk to achieve that objective.

The Fund’s total return outcome is determined by the level of cash and franked income received from the Fund’s investments and changes in the capital value of the Fund’s investments.

The volatility of Fund’s return is extremely low due to the greater proportion of the total return outcome being attributed to stable cash and franked income with changes in the capital value of securities having only a relatively minor impact.

As a consequence an investment in the Fund is ideally suited to investors seeking capital stable franked income returns.

The suggested timeframe for an investment in the Fund is at least 3 years.

The Fund is for wholesale sophistocated investors only. The minimum investment amount is $500,000.

Performance Objective

The Fund aims to outperform the UBS Bank Bill Index by a margin of between 2.5 – 3% over a rolling 3 year period.

As at 30 November 2016 the Fund's rolling 5 year total investment return was 7.32% per annum (includes the benefit of franking and is gross of management fees). This compares with the UBS Bank Bill Index rate of return over the same period of 2.84% per annum.

To find out more about the Elstree Enhanced Income Fund click on the links below.

Fact Sheet

To view the latest Fact Sheet Click here

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How to invest

Simply download the Information Memorandum, complete the application form and send it, along with a cheque payable to Elstree Enhanced Income Fund to

The Compliance Manager
C/- Elstree Investment Management Limited
Level 10, 30 Collins Street
Melbourne Victoria 3000

To download our latest Information Memorandum dated 28 October 2015 Click here

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Latest Unit Price Data (cob) 30 June 2017.


NAV of a unit - 30 June 2017 $0.7940 (ex-distribution $0.7875).

To download the Elstree Enhanced Income Fund's NAV history Click here

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Quarterly Distribution Data

The distribution due to unit holders registered at the close of business on 30 June 2017 was $0.0065 per unit.

To download the Elstree Enhanced Income Fund's weekly NAV history Click here

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Monthly Report June 2017

Click on the link below to review a performance appraisal of the listed debt equity hybrid sector for the month of June 2017. The key features of the month were;

  • The Elstree Enhanced Income Fund's NAV of a unit at the close of business on 30 June 2017 was $0.7940 (Ex-distribution $0.7875). This compares with the NAV of unit at the close of business on 31 May of $0.7887. The return from 31 May 2017 to 30 June 2017 represents a return of 0.67%. This compares with the All Ordinaries Accumulation Index and the All Maturities Bond Index returns of 0.28% and (0.90)% respectively.

  • The Fund’s over the year net return (after fees and before franking) increased to 11.95% from 11.90% previously. In gross terms the return increased to 13.69% from 13.58% previously.

  • To download the June 2017 Performance Review Click here

    To download the May 2017 Performance Review Click here

    To download the April 2017 Performance Review Click here

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    Withholding Tax Distribution Statement March Quarter 2017

    To download the June Quarter 2017 Withholding Tax Distribution Statement Click here

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    Annual Report and Audit Report

    To download the latest Audit Report for the Elstree Enhanced Income Fund Click here

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    Our Funds

    Australian Enhanced Income Fund NAV (ASX Code AYF)

    Latest: 14 July 2017 $6.127.
    Previous 30 June 2017 (ex-distribution) $6.071.

    Find Out More

    To view the latest Monthly Review Click here


    Elstree Enhanced Income Fund NAV

    Latest: 18 July 2017 $0.7915.
    Previous:11 July 2017 $0.7930.

    Previous month end: 30 June 2017 $0.7875

    Find Out More

    To view the latest Monthly Review Click here


    Latest Share Price AYF

    Click here for up to date share price
    (20 minute delay)

    Latest Fact Sheets

    Elstree Enhanced Income Fund. To view the latest Fact Sheet Click here

    Australian Enhanced Income Fund. To view the latest Fact Sheet Click here

    Latest Press. November 2016. Elstree in the ASX

    To view the article produced by the ASX Click here

    Crown Notes - a 2nd postscript (July 2016)


    It was only a month or so ago that we wrote a piece on the Crown demerger and the implication for the 2 outstanding pieces of sub debt, CWNHA and CWNHB. In our piece we said that we were not surprised by the demerger and the resultant revaluation of the Notes.

    We continue to believe the Notes are undervalued.

    We base our view on the fact that there is an inconsistency between the pricing of senior debt issued by Crown and the Notes. At a spread margin of greater than 8% (based on the closing price of $85 on July 13) the CWNHB appears mispriced relative to senior debt issued by Crown at circa 2.1%. Perhaps the market is not as sanguine about Crown’s corporate message and the maintenance of an investment grade credit rating as we are.

    In our piece we explain our thinking.

    To view our thoughts in more detail Click here

    Deutsche Bank AG. Talk of a 'bail out or bail in'. Should we be concerned?


    There has been a lot of commentary recently about Deutsche Bank in relation to the US Justice Department’s US$14 billion fine imposed on the bank for its activities in the lead up to the GFC. Concerns about the viability of Deutsche Bank and talk of the possibility of a ‘bail in or a bail out’ have been doing the rounds for a while now.

    We thought we would add our 2 Euro’s worth!

    To read our thoughts in more detail please
    Click here