Key Highlights

  • The fund aims to provide steady income and Capital stability while exceeding the RBA cash rate over a market cycle.
  • The fund holds 497 companies and issuers, with the top ten making up 20.20%.
  • The management fee is 0.45%, and the listed annual Yield is 4.20%.
  • Bonds make up 63.16% of the portfolio, with a separate 54.87% shown under other assets, which the listing does not explain in detail.

Daintree Core Income Active ETF (ASX:DCOR) invests in a diversified portfolio of fixed income securities, hybrid securities, Credit and cash, with the aim of providing investors a steady stream of income and capital stability over the medium term. The units were listed at $51.99, and the management fee is 0.45%. The fund's total return target is to exceed the RBA Cash Rate measured within a market cycle, and it may use Derivatives in limited circumstances.

Ticker

ASX:DCOR

Listed price

$51.99

Management fee

0.45%

Listed annual yield

4.20%

Benchmark

RBA Cash Rate Target

Holdings

497 companies

Portfolio make-up

Bonds make up 63.16% of the fund, with cash at 9.35% and stocks at 0.04%. The listing also shows 54.87% under other assets, which is large relative to the rest of the portfolio and may be linked to derivatives or other arrangements, though the listing does not say. Australia accounts for 79.21%, the United States for 8.34% and the United Kingdom for 6.00%.

The largest holdings include ANZ bonds at 2.68%, BNP Paribas at 2.36%, Stockland at 2.36%, Mirvac at 2.36%, Downer at 2.06%, QBE at 1.93% and DBS at 1.68%. The top ten make up 20.20%.

Income and costs

The listed annual yield is 4.20%, and the management fee is 0.45%. The fund pays monthly distributions, and the income depends on the spread the manager earns across credit and hybrid holdings above the cash rate.

The total return target is set against the cash rate, so investors should compare the fund's yield and returns against that benchmark rather than against bond indices.

Risks to weigh

Hybrid and subordinated securities can carry features such as deferred or cancelled payments, and their prices can fall sharply in stressed markets. Active credit selection can underperform, and the use of derivatives adds counterparty and operational risk. The large other-assets figure means the portfolio's exposures differ from its headline holdings, and investors should read the fund's disclosure documents to understand how it is built.

Final Word

The Daintree Core Income Active ETF targets income above the cash rate through a flexible mix of credit, hybrids and cash. Its complex asset mix and use of derivatives are the main points for investors to weigh alongside the monthly income it targets.