Arculus Preferred Income Fund
Australian government and corporate bonds across the capital structure, actively managed to earn higher income through the rate cycle.
Target return:
90-day BBSW +3.5% p.a.
before fees
- Redemption requests:
- Any business day
- Distributions:
- Quarterly
- Inception:
- October 2004
About the Fund
The Fund draws on the widest toolkit in the Arculus range: government and semi-government bonds, investment grade corporate senior and subordinated debt, ASX-listed hybrids and cash, with up to 30% permitted below investment grade. The discipline is structural: no leverage, no structured credit, no foreign currency. Net asset value was $101 million as at 30 September 2026.
Rated 'Investment Grade' by Lonsec.
Ratings are opinions of the relevant research house, are not recommendations, and may change without notice.
Rated 'Investment Grade' by Lonsec.
Ratings are opinions of the relevant research house, are not recommendations, and may change without notice.
Request the Fund Rating ReportPerformance
Returns to 30 September 2026, annualised and net of all fees. Cash distributions were 4.79% over the year and have averaged 5.42% p.a. since inception. Past performance is not an indicator of future performance.
- 1-year return including franking credits
- 1-year total return
- Running yield
- Yield to maturity
- 90-day BBSW
Performance to 30 September 2026 (annualised)
| Period | Total return | Incl. franking credits | Cash distribution |
|---|---|---|---|
| 3 months | 1.65% | 1.65% | 1.34% |
| 6 months | 3.66% | 3.73% | 2.45% |
| 1 year | 4.14% | 4.36% | 4.79% |
| 2 years | 4.54% | 4.89% | 5.84% |
| 3 years | 5.51% | 5.84% | 5.88% |
| 5 years | 4.05% | 4.33% | 5.18% |
| Since inception (Oct 2004) | 4.54% | 4.92% | 5.42% |
Fund returns are net of all fees, calculated using exit prices and assuming distributions are reinvested, with no allowance for tax. Returns including franking credits incorporate the value of franking credits attributable to the Fund's distributions; an investor's ability to use franking credits depends on their tax circumstances. The distribution component is the amount paid by way of distribution, including net realised capital gains. Numbers may not sum due to rounding.
Who it may suit
Investors seeking higher income than cash and traditional debt provide, with medium risk over a three to five-year horizon — a regular income draw, or the return-seeking sleeve of a fixed income allocation alongside a defensive core.
How the Fund is managed
Government bonds provide ballast; investment grade senior and subordinated debt carries the income; a measured allocation to hybrids and higher-yielding paper adds return where it is paid for. Positioning follows the team’s reading of the rate cycle and credit margins — never an index weight.
Allocations below investment grade sit inside a hard mandate cap, and every decision passes four-eyes governance before it settles, with operational oversight independent of the investment desk.
Fund features
| Objective | BBSW +3.5% p.a. before fees |
|---|---|
| Approach | Active, benchmark unaware |
| Asset class | Specialised fixed income |
| Liquidity | Daily redemption requests |
| Distributions | Quarterly |
| Management fee | 0.72% p.a. incl. GST |
| Buy–sell spread | +0.15% / −0.15% |
| Performance fee | Nil |
| Minimum investment | $2,000 |
Portfolio
| Running yield | 7.34% |
|---|---|
| Yield to maturity | 8.02% |
| Average margin | 3.25% |
| Average years to maturity | 2.55 |
| Number of securities held | 41 |
| Modified duration | 0.43 |
| Credit duration | 1.48 |
Portfolio allocation
| Portfolio sector | Allocation |
|---|---|
| Floating rate notes | 75.0% |
| Fixed rate securities | 17.4% |
| Cash | 7.6% |
How to invest
Online
Through your adviser or platform
Documents & statements
Statements for your own holding — distribution and annual tax statements — are available through the registry portal.
Important information
This information is issued by Arculus Funds Management Pty Ltd, a corporate authorised representative of GCI Australia Pty Ltd ABN 68 140 364 576, AFSL 346034. DDH Graham Limited (ABN 28 010 639 219 and AFSL 226319) is the Responsible Entity of the Arculus Preferred Income Fund (ARSN 108 161 575, APIR DDH0001AU). The information on this page is general in nature and does not take account of your objectives, financial situation or needs. Before making a decision about the Fund, read the Product Disclosure Statement and Target Market Determination, available from ddhgraham.au, and consider whether the Fund is appropriate for you. Fund administration and registry services are provided by SS&C and custody by Northern Trust. Past performance is not an indicator of future performance.