ASCF High Yield Fund
31 March 2024
Key Facts
| Index Used: | Bloomberg AusBond Composite 0+ Yr Index | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Fixed Income - Debt | FUM (millions): | AU$ 139.903m |
| Investment Style: | N/A | Fund Inception Date: | March 2017 |
| Geographic Mandate: | Australia | Latest Return Date: | March 2024 |
| Investor Type: | Retail | Status: | Open |
| Minimum Investment: | AU$ 5,000 | Investment Frequency: | Daily |
Manager Details
Unlike peer to peer lending, where investors will invest directly in a single loan, all investments in ASCF funds are spread across the entire pool of loans. This helps to minimise the impact of any losses incurred by a Fund.
ASCF does not provide any construction or development funding to property developers.
Unlike peer to peer lending, where investors will invest directly in a single loan, all investments in ASCF funds are spread across the entire pool of loans. This helps to minimise the impact of any losses incurred by a Fund.
Strategy Description
ASCF High Yield Fund provides short term 1st and/or 2nd mortgage loans to a maximum Loan to Valuation Ratio (LVR) of 80% for a maximum term of 12 months on residential and commercial property. Does not require full valuations on loans <65% LVR. Borrowing rates are from 12% per annum on 1st mortgage loans and 16% per annum on 2nd mortgage/caveat loans. Pays investors between 6.50% - 7.75% per annum depending on their investment term.
ASCF High Yield Fund provides short term 1st and/or 2nd mortgage loans to a maximum Loan to Valuation Ratio (LVR) of 80% for a maximum term of 12 months on residential and commercial property. It does not require full valuations on loans <65% LVR. Borrowing rates are from 12% per annum on 1st mortgage loans and 16% per annum on 2nd mortgage/caveat loans. It pays investors between 6.50% - 7.75% per annum depending on their investment term.
Fund Fees
| Management Fee: | % | Performance Fee: | % |
| Buy Spread: | 0% | Sell spread: | 0% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Australian Secure Capital Fund Ltd |
| Administrator: | N/A | Prime Broker: | N/A |
| Custodian: | Certane CT Pty Ltd | Legal: | McMahon Clarke |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The ASCF High Yield Fund has a track record of 7 years and 1 month and has outperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in March 2017, providing investors with an annualised return of 8.17% compared with the benchmark's return of 1.63% over the same period.
The Manager has delivered these returns with 4.44% less volatility than the benchmark, contributing to a Sharpe ratio which has consistently remained above 1 over the past five years and which currently sits at 10.67 since inception. The fund has provided positive monthly returns 100% of the time in rising markets and 100% of the time during periods of market decline, contributing to an up-capture ratio since inception of 62% and a down-capture ratio of -72%.
The ASCF High Yield Fund rose by +0.62% in March, a difference of -0.5% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which rose by +1.12%. Over the past 12 months, the fund's best monthly return was +0.62% compared with the benchmark's best return of +3.01%, and its worst monthly return was +0.55% vs the benchmark's worst return over the same period of -1.95%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.60 | 0.59 | 0.62 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 1.83 |
| 2023 | 0.53 | 0.49 | 0.55 | 0.55 | 0.55 | 0.55 | 0.58 | 0.56 | 0.56 | 0.59 | 0.59 | 0.62 | 6.95 |
| 2022 | 0.56 | 0.50 | 0.55 | 0.54 | 0.55 | 0.53 | 0.53 | 0.53 | 0.52 | 0.54 | 0.51 | 0.53 | 6.55 |
| 2021 | 0.65 | 0.59 | 0.61 | 0.61 | 0.62 | 0.60 | 0.61 | 0.61 | 0.58 | 0.59 | 0.56 | 0.57 | 7.46 |
| 2020 | 0.72 | 0.66 | 0.73 | 0.71 | 0.73 | 0.68 | 0.68 | 0.70 | 0.68 | 0.68 | 0.66 | 0.67 | 8.62 |
| 2019 | 0.72 | 0.67 | 0.73 | 0.72 | 0.71 | 0.75 | 0.75 | 0.74 | 0.70 | 0.72 | 0.68 | 0.73 | 8.97 |
| 2018 | 0.81 | 0.71 | 0.76 | 0.66 | 0.74 | 0.75 | 0.79 | 0.74 | 0.70 | 0.70 | 0.72 | 0.74 | 9.18 |
| 2017 | NA | NA | 1.02 | 0.92 | 0.95 | 0.95 | 0.57 | 0.35 | 0.84 | 0.83 | 0.80 | 0.75 | 8.27 |
Only seven years of data shown. Click here to view all data.
General Notes
Performance shown is the aggregate return for all investors across all investment terms (3, 6, 12 and 24 months). Redemption notice is 1-3 months depending on investment term.
Annual Returns
Over the past 12 months, the fund has risen by +7.21% compared with the benchmark which has returned +1.47%, for a difference of +5.74%. Since inception in March 2017, the fund has returned +8.17% per annum, a difference of +6.54% relative to the benchmark which has returned +1.63% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $174. The same amount invested in the benchmark over the same period would have become $112.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 0.09% vs the index's 5.4%. The annualised volatility of the fund's returns since inception in March 2017 is 0.4% vs the index's 4.84%. Over all other periods, the fund's returns have been consistently less volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 52.99 for performance over the most recent 12 months to a low of 8.98 over the latest 36 months, and is 10.67 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since March 2017 is 0.05.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in March 2017 in the months where the market was positive, the fund has provided positive returns 100% of the time, contributing to an up-capture ratio for returns since inception of 61.52%. Over all other periods, the fund's up-capture ratio has ranged from a high of 49.96% over the most recent 60 months to a low of 31.9% over the latest 24 months.
Performance in Negative Markets
Since inception in March 2017 in the months where the market was negative, the fund has provided positive returns 100% of the time, contributing to a down-capture ratio for returns since inception of -71.67%. Over all other periods, the fund's down-capture ratio has ranged from a high of -38.33% over the most recent 36 months to a low of -56.45% over the latest 60 months. A negative down-capture ratio indicates that, on average, the fund delivered positive returns in the months the market fell.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund has had too few negative returns returns over the past 12 months for a Sortino ratio to be calculated. The Bloomberg AusBond Composite 0+ Yr Index's Sortino ratio over the same period is 0.04. The Sortino ratio differs from the Sharpe ratio in that it only considers the volatility of negative returns over a particular time period.
Drawdown
Since inception in March 2017, the fund hasn't had any negative monthly returns and therefore hasn't experienced a drawdown. Over the same period, the index's largest drawdown was -13.2%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Fixed Income - Debt as of March 2024
The performance of the ASCF High Yield Fund ranked it in the first or second quintile for all KPIs over 5 & 7 years. Over 3 years the fund ranked in the first or second quintile for all KPIs except Sharpe, while it ranked in the first quintile for all KPIs except Total Return over 1 year.
Over the past 12 months, the fund has risen by +7.21% compared with the peer group which has returned an average of +8.25%, for a difference of -1.04%.
The fund's returns over the past 12 months have been achieved with a volatility of 0.09% vs the peer group's average volatility of 0.48%. The annualised volatility of the fund's returns since inception in March 2017 is 0.4% vs the peer group's 2.24%. Over all other periods, the fund's returns have been consistently less volatile than the peer group.