Great to hear from you again Occam.
Occam, correct me if I'm wrong but MIF sounds more like Smarter Money's other fund, Smarter Money higher income fund which
tends to have less in cash and more in senior A rated Australian bank FRN's ( currently 65% of the fund, with 34% in cash )
It has returned 4.51% for year to 30 Jun and 3.73% p.a over 2 yrs ( after all fees ), slightly outperforming MIF.
I agree with your distaste for performance fees but as long as they do consistently outperform it is less of a worry.
Importantly, Smarter Money only uses FRNs, never uses fixed rate bonds, which in a soon to start era of rising interest rates
gives it a distinct advantage over most bond funds. And they take an active flexible approach, at times over the past few years having as much as 85% in cash and at other times as much as 80% in bank FRN's, which I guess is why they charge performance fee,
but they don't kick in until beat the cash rate by 1.66% ( active cash fund ) or by 2.19% ( higher income fund )
Smarter Money funds are run by Coolabah Capital. Reading the team bios, I am surprised to hear your low opinion of them
and note that Smarter Money active cash fund has been awarded 5 star Morningstar rating as well as high ratings from Lonsec , Mercer, Atchison Consultants and Australia Ratings. Not that I use ratings anyway in my decisions to invest, but it appears other people don't agree they are slapdash ?
