Australian Masters Corporate Bond Fund No 5 Limited (AKY) has been delisted from the Australian Securities Exchange (ASX)
Australian Masters Corporate Bond Fund No 5 Limited (AKY)
is a publicly listed company on the Australian Securities Exchange (ASX).
About Australian Masters Corporate Bond Fund Series
The Australian Masters Corporate Bond Fund series ('AMCBF') provided investors with the opportunity to gain access to a diversified portfolio of quality corporate bonds, not usually accessible to retail investors. The funds provided exposure to a diversified portfolio of bonds issued in Australia and denominated in Australian dollars.
The three key investment objectives of the Companies are:
- To provide investors a high rate of income and consistent fully franked dividends and the potential to receive capital returns throughout the life of the Companies;
- To minimise default risk by investing in Investment Grade corporate bonds issued in Australia and denominated in Australian dollars;
- To minimise costs of the Company.
Under the Companies Management Agreements, the Manager is permitted to undertake investments on behalf of the Company in consultation with the Company's Board.
The Manager is able to select corporate bonds that comply with the following investment criteria:
- Australian dollar denominated corporate bonds issued in Australia;
- Credit rating of 'BBB-' or higher on all underlying corporate bonds;
- Maturity dates which are not longer than the anticipated final capital return date as specified by each fund.
About Australian Masters Corporate Bond Fund No 5
The Company was established to provide Australian retail investors access to the Australian wholesale senior bond market through a simple, cost effective corporate structure. The Company raised $53.8 million through a prospectus raising completed in February 2010.
This Company provides access for Australian domiciled retail investors to an underlying portfolio of high ranking senior Australian corporate debt. The Company also holds in its portfolio senior corporate debt issued in Australia by well known multinational companies and Australian subsidiaries of multinational companies. These bonds, known as kangaroo bonds, are denominated in Australian dollars.
The Company is managed by Walsh & Company Asset Management Pty Limited.
The Company employs a static, or ‘buy and hold’ portfolio management style, selecting a portfolio of high quality senior bonds denominated in Australian dollars and issued by Australian companies and generally holding these bonds until maturity.
Since February 2010, the Company assembled a portfolio of wholesale bonds from 15 different issuers with staggered maturities ranging from two years to over five years as of the completion of the initial public offering. The aggregate purchase price of the bonds from the 15 issuers totaled $52.2million. At the time of purchase, the bonds had yields to maturity of between 7.46% and 10.35%.
The Company expects to pay quarterly dividends per year, which will be franked to the extent possible. The Company will seek Shareholder approval to execute capital return from time to time, passing capital proceeds derived from the maturity of fixed income securities back to investors.
Australian Masters Corporate Bond Fund No 5 Limited
100 Pacific Highway
North Sydney, NSW
+61 1300 454 801
Fax: +61 1300 883 159