Report Date	19 December 2019
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	November 2019
Latest Return	0.29%
Latest 6 Months	1.76%
Latest 12 Months	5.08%
Latest 24 Months (pa)	4.19%
Annualised Since Inception	7.82%
Inception Date	31 May 2009
FUM (millions)	AU$76.1
Fund Overview	The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes.
Manager Comments	The Spectrum Strategic Income Fund rose +0.29% in November, taking performance over the past 12 months to +5.08% versus the RBA Cash Rate's +1.23%. Since inception in June 2009, the Fund has returned +7.82% p.a. with an annualised volatility of 2.99%. The Fund's Sharpe ratio of 1.69 and Sortino ratio of 4.67 highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility. The portfolio remains well diversified with a broad spread of securities by legal structure. Bank T2 capital remains a healthy 25% of the portfolio, whilst senior unsecured and senior secured represent 28% and 11% respectively. The fund holds 14% in ASX listed securities. Spectrum emphasise that, with 10% of the portfolio in cash, the Fund can take advantage of any credit spread weakness. The portfolio continues to maintain an investment-grade rating with an average credit rating of BBB+. Spectrum believe Trump's twitter announcements throughout November were the catalyst for a strong equity market earlier in the month. Their view is that increasing tensions between the US and China will keep the market on its toes. They noted global debt continues to rise and believe this may represent a problem over time, especially so if inflation or interest rates rise in the US and/or globally. They also believe markets in Australia will continue to take their lead from the US markets.
More Information	Fund Profile Manager's Report

Report Date	05 December 2019
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	October 2019
Latest Return	-0.07%
Latest 6 Months	2.17%
Latest 12 Months	4.70%
Latest 24 Months (pa)	4.20%
Annualised Since Inception	7.85%
Inception Date	31 May 2009
FUM (millions)	AU$74.3
Fund Overview	The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes.
Manager Comments	The Spectrum Strategic Income Fund returned -0.07% in October. The Fund has returned +4.70% over the past 12 months and +7.85% p.a. since inception in June 2009 with an annualised volatility of 3.0%. The portfolio remains well diversified with a broad spread of securities by legal structure. Bank T2 capital remains at 25% of the portfolio, while senior unsecured comprises 29% and senior secured represents 11%. The Fund holds 10% in ASX listed securities. Over the month hybrid securities recorded their first negative month since February 2019 which had an adverse effect on performance. The portfolio is positioned to take advantage of movements in spreads or rates. With 11.6% in cash, the Fund can take advantage of any credit spread weakness. Spectrum noted that over time the cash balance will be reinvested. The portfolio continues to maintain an average credit rating of A-.
More Information	Fund Profile Manager's Report

Report Date	07 November 2019
Manager	Spectrum Asset Management Limited
Fund Name	Spectrum Strategic Income Fund
Strategy	Credit
Latest Return Date	September 2019
Latest Return	0.13%
Latest 6 Months	2.56%
Latest 12 Months	4.98%
Latest 24 Months (pa)	4.51%
Annualised Since Inception	7.92%
Inception Date	31 May 2009
FUM (millions)	AU$73.4
Fund Overview	The Spectrum Strategic Income Fund aims to deliver steady income which is higher than bank deposits but without the volatility of equity markets. The Fund provides daily liquidity and does not use leverage or derivatives. The Fund invests primarily in Australian dollar corporate bonds and limits exposure to long-term interest rate risk by investing mainly in floating rate notes.
Manager Comments	The Spectrum Strategic Income Fund returned +0.13% in September, taking performance over the past 12 months to +4.98% and annualised performance since inception in June 2009 to +4.62% with an annualised volatility of 1.03%. The Fund's Sharpe and Sortino ratios, 1.71 and 4.70 respectively, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst avoiding the market's downside volatility over the long-term. Spectrum noted the portfolio remains well diversified with a broad spread of securities by legal structure. Bank T2 capital remains 25% whilst senior unsecured and senior secured represent 29% and 11% of the portfolio respectively. The fund holds 10% in ASX listed securities and 11.5% in cash. The portfolio continues to maintain an average credit rating of A-. Spectrum's view is that diversification remains imperative. They expect volatility to remain subdued as markets tussle with the push-pull of trade negotiations between the U.S. and China, and the U.S. and Europe. They also noted there is an expectation that the U.S. may make further rate cuts which would place further pressure on other central banks to cut interest rates, resulting in a scramble for yield and encouraging investors to invest in riskier assets despite the need for caution.
More Information	Fund Profile Manager's Report