Core Interest Income Strategy
Investment Solutions

Paul Ashworth, Managing Partner

As part of our Core Investment Solutions for our clients, the Core Interest Income Strategy is a significant component to provide consistent, high quality, highly rated, reliable income with capital stability and liquidity.
Posted 12 December 2023

Being part of our Core Investment Solutions for clients for over 25 years, our Core Interest Income Strategy is used across various solution spectrums. Taking just a few:

  • Short to medium term funding pools requiring capital stability. Applicable to not-for-profit organisations operating in conjunction with long term endowment capital pools

  • Highly reliable income and capital stability for highly specific term funding

  • Managing drawdown risk for conservative investors

  • Conservatively minded investors

The long running strategy is primarily focussed on highly reliable yield above the 90 day bank bill swap rate ('BBSW') with capital stability. It operates with minimal interest rate risk. 

The strategy invests in traded investment grade securities (average credit rating A). A primary attribute is that the strategy is highly liquid with investment in the upper levels of the capital structure covering traded securities in APRA regulated entities across secured, senior and subordinated bonds. (Where liquidity and access is less of a requirement, we can provide access to our Enhanced Yield Strategy. The primary trade-off is reduced liquidity and no immediate access, but a premium in yield).

We provide our Core Investment Solutions through our individually managed account process. The key feature is that our clients own all their holdings within a fully administered, independent structure. For the Core Interest Income Strategy there are between 60 to 80 bond securities which our clients directly own.  Administration, receipt of interest, settlement and maturity is fully managed. This unique format of direct ownership by our clients supports transparency, accountability and client tax efficiency. This is a long standing hallmark of Cameron Harrison’s approach to private investment management.

If you would like to discuss our Core Interest Income Strategy or any of our other Core Investment Solutions, please contact us on +613 9655 5000 or here.

Speak to one of our advisers to learn more: