At Financial Decisions, we are continually assessing new investment opportunities to benefit our clients. Traditionally, many funds have not had the level of transparency that we require. However, after two years of negotiations, we became a part owner of a managed investment company, Supervised Investments Australia Limited (SIAL). The investment in SIAL and Damien Cooper’s board representation provide the desired visibility and control over its investment decisions.
SIAL is an investment company that manages two types of funds – an equity fund, The Supervised Fund and a fixed interest fund, Supervised High Yield Fund. We believe that the Supervised High Yield Fund is an opportunity for our clients to add further diversification within the fixed interest sector. The investment objective of SIAL is to outperform a benchmark of 1.5% above the cash rate of the Reserve Bank of Australia, while trying to minimise the risk of permanent loss of capital. Further, SIAL follows a unique investment strategy known as the Supervised Theory of Absolute Return (STAR) as described on page 8 of the Information Memorandum. At any time, SIAL may be concentrated in one or a small number of investments (also refer to page 9 of the Information Memorandum).
Types of Investments
SIAL invests in all forms of marketable floating and fixed income debt securities, such as asset backed debt securities, residential mortgage backed securities, corporate debt, regional and sovereign government debt securities, debt/equity hybrid securities and currencies. These investments will either be listed or traded in a market where prices can be verified independently.
SIAL intends to distribute all dividends, interest and other income, including realised capital gains, net of investment management fees, performance fees and other costs incurred by SIAL. Distributions will be calculated as at 30 June and payable in July/August of each year.
Please contact our investment specialists to find out more about our investment options.