Elstree Investment Management Limited

AFSL 225721

Elstree Enhanced Income Fund

Overview

The Elstree Enhanced Income Fund invests in a diversified portfolio of listed floating rate credit securities called hybrids. The Fund is designed primarily for investors who are seeking to earn a rate of return above the bank bill rate of return but are prepared to accept a small degree of capital risk to achieve that objective.

The Fund's total return outcome is determined by the level of cash and franked income received from the Fund's investments and changes in the capital value of the Fund's investments.

The volatility of Fund's return is extremely low due to the greater proportion of the total return outcome being attributed to stable cash and franked income with changes in the capital value of securities having only a relatively minor impact.

As a consequence an investment in the Fund is ideally suited to investors seeking capital stable franked income returns.

The suggested timeframe for an investment in the Fund is at least 3 years.

The Fund is for wholesale sophistocated investors only. The minimum investment amount is $500,000.

Performance Objective

The Fund aims to outperform the UBS Bank Bill Index by a margin of between 2.5 - 3% over a rolling 3 year period.

As at 31 December 2020 the Fund's rolling 5 year total investment return was 8.59% per annum (includes the benefit of franking and is gross of management fees). This compares with the UBS Bank Bill Index rate of return over the same period of 1.52% per annum.

To find out more about the Elstree Enhanced Income Fund click on the links below.

Fact Sheet

To view the latest Fact Sheet June 2021. Click here

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How to invest

Simply download the Information Memorandum, complete the application form and send it, along with a cheque payable to Elstree Enhanced Income Fund to

The Compliance Manager
C/- Elstree Investment Management Limited
1801, 8 Kavanagh Street
Southbank Victoria 3006

To download our latest Information Memorandum dated 14 September 2021 Click here

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Latest Unit Price Data (cob) 31 October 2021.


NAV of a unit - Close of business 29 October 2021 $0.8628.

To download the Elstree Enhanced Income Fund's NAV history Click here

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Quarterly Distribution Data

The distribution due to unit holders registered at the close of business on 30 September 2021 was $0.0098 per unit.

To download the Elstree Enhanced Income Fund's monthly NAV and cash distribution history Click here

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Monthly Performance Review October 2021

Click on the link below to review a performance appraisal of the listed debt equity hybrid sector for the month of October 2021. The key features of the month were;

  • The Elstree Enhanced Income Fund's NAV of a unit at the close of business on 29 October 2021 was $0.8628. This compares with the Ex-distribution NAV of a unit at the close of business on 30 September 2021 of $0.8559. The return from cob 30 September 2021 to 29 October 2021 represents a return of 0.81%. This compares with the All Ordinaries Accumulation Index and the All Maturities Bond Index returns of 0.15% and (3.55%) respectively.

  • The Fund's over the year net return (after fees and before franking) increased to 6.03% from 5.82% previously. In gross terms the return increased to 7.48% from 7.27% previously.

    • To download the October 2021 Performance Review Click here

    To download the September 2021 Performance Review Click here

    To download the August 2021 Performance Review Click here

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    Withholding Tax Distribution Statement June Quarter 2019

    To download the March Quarter 2020 Withholding Tax Distribution Statement Click here

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    Annual Report and Audit Report

    To download the latest Audit Report for the Elstree Enhanced Income Fund Click here

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    Our Funds

    Elstree Hybrid Fund Dividend Reinvestment Plan Rules.


    For information regarding the Elstree Hybrid Fund's Dividend Reinvestment Plan (DRP) please Click here

    Elstree Enhanced Income Fund NAV

    Latest: 23 November 2021 $0.8655.
    Previous: 16 November 2021 $0.8642.

    Previous month end: COB 29 October 2021 $0.8628.

    Find Out More

    To view the latest Monthly Review Click here

    To download the Elstree Enhanced Income Fund's NAV history updated on 6 September 2021. Click here

    Latest Fact Sheet: Updated June 2021

    Elstree Enhanced Income Fund. To view the latest Fact Sheet Click here

    The introduction by ASIC of DDO has implications for short term hybrid security issuance


    DDO stands for Design and Distribution Obligations. It is a laudable ASIC initiative to make sure that consumers are provided with appropriate financial products. To find out just how it impacts hybrid security issuance we invite you to Click here.

    Will they or won't they cut bank dividends?


    Will the banks continue to pay dividends on their ordinary shares or will they stop paying them and what are the implications for investors in hybrid capital instruments?

    There has been much said and written about this lately and we couldn't let the opportunity pass without comment. 

    To view our thoughts in more detail Click here

    Inflation siren songs. Be careful what you wish for.


    We've read about it in the press, we've read about it in blogs and we've read about it in broker research notes. We are of course talking about inflation.

    While we don't think an outbreak is imminent we understand that policy makers might have a secret ambivalence to manufacture some because of what it does to debt to GDP ratios. We suggest that (perhaps) manufacturing above trend inflation for a period might not be such a good idea given what it did to real returns and markets in the 1970's.

    To read our thoughts in more detail please
    Click here

    Elstree Enhanced Income Fund achieves 5* Morningstar quantitative rating

    Click here for details.

    How do hybrids perform in periods of stress.


    To read our thoughts in more detail please
    Click here