Key Highlights

  • ICOR uses a stratified sampling strategy to track the Bloomberg AusBond Credit 0+Y TR AUD Index, spanning 451 underlying companies.
  • The fund's most recent distribution came in at $1.013 on a final basis, slightly below the $1.052 reported in the prior period.
  • Geographic exposure includes 54.82% to Australia, with meaningful allocations to Canada (10.38%) and the United States (4.40%).
  • ICOR carries one of the lower management fees among the funds reviewed at 0.15% per annum.

Fund Overview and Objective

ICOR, listed on the ASX since 29 May 2020, sits within the Diversified Credit category and tracks the Bloomberg AusBond Credit 0+ Yr Index. The fund uses a stratified sampling methodology, selecting a subset of index-eligible securities designed to replicate the index's behaviour while accounting for liquidity, Transaction Costs and overall risk. The management fee was reported at 0.15% per annum.

Portfolio Composition

ICOR's asset allocation showed 99.41% in bonds and 0.59% in cash. The fund held 451 companies, with the top 10 holdings accounting for a comparatively modest 8.45% of the portfolio, reflecting the broad Diversification achieved through the stratified sampling approach.

Leading holdings included CPPIB Capital 4.75% notes (1.39%), CPPIB Capital 4.6% notes (1.24%) and CPPIB Capital 3.9% notes (0.83%), alongside Westpac Banking Corp 5.141% notes (0.83%).

Geographic Exposure

Australia represented 54.82% of the portfolio, the lowest domestic weighting among the Betashares and iShares diversified credit funds reviewed. Canada accounted for 10.38%, with further exposure to the United States (4.40%), the United Kingdom (4.25%), Germany (4.07%) and the Netherlands (4.99%).

Distribution and Yield Profile

ICOR reported an annual yield of 4.52% on a final distribution basis. The most recent distribution of $1.013 represented a decline from $1.052 in the prior period, which itself followed $1.033 before that and $1.173 further back, indicating distribution figures have moved within a relatively narrow but declining recent range.

Conclusion

ICOR's stratified sampling approach and broad base of 451 holdings provide a diversified route into Australian and international investment-grade corporate credit at a comparatively low management fee. Its most recent distribution decline to $1.013 from $1.052 in the prior period is a notable data point for those tracking the fund's income consistency, while its lower Australian weighting relative to peer funds reflects a somewhat more internationally diversified credit exposure.