BlueRock’s Wealth team has launched an innovative new portfolio designed for individual, trust, superannuation and corporate investors who are searching for a diversified income strategy, without the exposure to listed equities
BlueRock’s Enhanced Yield Portfolio brings the world of diversified, quality income solutions to the smaller investor. The high-yielding portfolio presents a diversified solution for clients that is usually restricted to family offices and ultra-high net wealth investors. It aims to create recurring income materially in excess of traditional bank deposit rates, while offering less volatility than listed equities.
What’s Under The Hood of BlueRock’s Enhanced Yield Portfolio?
The Enhanced Yield Portfolio holds a diversified allocation to listed and unlisted income securities. Utilising a multi-manager approach across the portfolio has enabled the BlueRock Investment Committee to diversify the underlying characteristics of the portfolio. This enables us to enhance the yield, while reducing the risks to investors through diversification.
Whilst the fund has long-term exposure targets, the BlueRock Investment Committee can and will tactically allocate capital to those sectors with our preferred risk/return profiles.
Bonds
Designed to help stabilise and de-risk the portfolio, while creating a highly liquid and reliable source of yield to the investor. Over the long-term it is estimated that 24% of the Enhanced Yield Portfolio will be allocated to a blend of government, semi-government and corporate bonds.
Hybrids
Hybrids combine equity and debt to provide a higher yield than bonds, with the liquidity of being a listed asset. Over the long-term 24% of the Enhanced Yield Portfolio comprises listed Australian hybrid securities, held across major Australian banks and insurance companies, blended to form a diversified pool of assets.
Corporate Credit
Over the long-term 24% of the enhanced yield portfolio will be allocated to a blend of private credit to listed and unlisted companies in Australia. This diversified portfolio of credit to corporates is backed by cash flow and strong operating balance sheets, combining capital preservation and return maximisation strategies.
Property Lending
A diversified portfolio of loans to both individuals and corporates, secured by properties here in Australia, makes up another 24% of the Enhanced Yield Portfolio. This blend of loans is secured against Australian residential, commercial, retail and agricultural properties and are a mix of first ranking, second ranking and mezzanine finance.
Cash
Cash will typically be used where liquidity is required or when particular sectors present what we believe to be a poor risk/return trade-off.
BlueRock’s Enhanced Yield Portfolio is a unique opportunity for a range of investors. Considering the details on distributions, minimum investment, management, reporting and flexibility will help you decide if it’s right for you. As always, our Private Wealth team is here to advise you.
A Unique Investment Opportunity
What makes the Enhanced Yield portfolio unique is that it provides exposure to investments and opportunities commonly unavailable to smaller investors. Many of the solutions within the portfolios have traditionally been restricted to high-net worth individuals, family offices and corporations due to their high minimum investment limits. BlueRock’s Private Wealth team has sourced these unique opportunities and made them available to all investors, thanks to the low minimum portfolio balance of $100,000.
Regular Income
Distributions are paid regularly, with the frequency depending on the underlying investments, and can be distributed to the investor or reinvested into the portfolio
Management
Leverage the experience of the BlueRock Investment Committee to manage your portfolio in a proactive and dynamic manner. You’ve worked to build your wealth and our team works just as hard to ensure you have the right investment strategy. They’ll assess your investment timeframe and capacity to deal with short-term setbacks to determine if this is the right strategy for you.
Portfolio Flexibility
The fund operates on a 90-day liquidity window. Subject to minimum investment amounts, withdrawals and contributions may be made on an ongoing basis.
What Other Investment Strategies Does BlueRock Offer?
In addition to the enhanced yield fund, BlueRock Private Wealth offers 4 core investment strategies designed to cater for varying personal scenarios and investment philosophies.
- Dynamic Index
Our low-cost, dynamic asset allocation, ETF-based portfolio
- Wholesale Active
Our flagship, actively traded portfolio
- Global Opportunities
A high-conviction, ‘best ideas’ portfolio
- BlueRock Impact
An ESG (Environmental, Social and Governance) focused ‘Impact Portfolio’
Talk To BlueRock About Your Investment Strategy
If you’re looking for a reliable and consistent income stream with regular dividends and the potential for capital growth, our Enhanced Yield Portfolio might be the right investment strategy for you. This portfolio offers investors a unique opportunity to create a yield higher than cash deposits, while enjoying some peace of mind. For more information or to speak with one of our investment experts, please don’t hesitate to contact us today. We are happy to answer any questions you may have about our innovative new product offering.
The information in this document is intended as general information only and should not be considered as advice on any matter and should not be relied upon as such. This information has been prepared without taking into account any individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information before acting or seek advice before making any financial decisions.
