Financial Income Fund
Fund Summary
The Financial Income Fund (FIF) is a conservative, actively managed, income-focused strategy with a ten-year track record, targeting opportunities across the capital structures of highly regulated Australian financial institutions. It seeks to outperform the Solactive Australian Hybrid Securities Index — a benchmark of bank hybrid securities — over a one to three-year+ timeframe, on a net return basis.
Unlike the benchmark, the Fund allocates to higher-ranking Senior and Subordinated instruments, aiming to deliver stronger risk-adjusted returns.
Seed Funds Management are experts in financial capital issuance, with deep experience across Senior, Subordinated and Hybrid securities.
Investment Universe
The universe for the Financial Income Fund portfolio includes prudential capital instruments issued by banks, insurers and non-bank financial corporations, as well as other instruments from these issuers such as senior bonds. Prudential capital includes hybrids and subordinated bonds (sometimes referred to as Tier 1 and Tier 2 securities, respectively). Senior bonds add significant additional liquidity to the portfolio as well as adding important product diversity.
The Fund does not invest in foreign currency or foreign issuers, excluding issuers regulated by the Reserve Bank of New Zealand.
We believe APRA-regulated issuers, supported by the strength of the Australian banking system, represent some of the safest and most resilient financial institutions globally, underpinned by strong capital positions, conservative lending standards and robust regulatory oversight.
Our Investment Universe:
Strong Historical Returns
After ten years of prudent management, investors in the Fund have experienced strong returns
that have meaningfully outperformed the Solactive Hybrid Index and RBA Cash Rate.
6.38% p.a.
Since September 2015
The fund has provided investors above benchmark returns through a highly active and tactical approach to selecting securities.
+1.47% p.a.
Above the Hybrid Index
The Solactive Hybrid Index Benchmark represents the performance of bank hybrid securities on a buy-and-hold basis.
+4.29% p.a.
Above the RBA Cash Rate
Historically the fund has provided a significant margin above the RBA Cash Rate that has returned just 2.09% p.a. since September 2015.
Investment Style and Approach
The Investment Manager intends to apply a tactical approach in terms of which securities it invests in and the timing of such investments with the aim of delivering investors with a robust ongoing risk-adjusted yield through market and interest rate cycles.
The investment manager will:
- manage interest rate risk via a portfolio that holds primarily floating rate instruments;
- provide portfolio diversity by security type, credit risk, duration and issuer;
- aim to distribute franking credits associated with the Fund’s holdings of franked securities;
- aim to distribute regular income; and
- ensure the portfolio has no exposure to foreign currencies.
Our Platform Availability:
FIF Snapshot
Entry Unit Price (7th September 2026): $10.7460 (Cum-distribution for Aug)
Exit Unit Price (7th September 2026): $10.7353 (Cum-distribution for Aug)
Unit Pricing: Daily
Applications: Daily
Redemptions: Daily
Distributions: Monthly
APIR Code: EVO3184AU
Performance Fees: Zero.
Management Fee: 0.55%
Costs: 0.15% (maximum)
See FIF PDS for details.
Fund Documents
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Research
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Notices
The material contained within this website about the Financial Income Fund (“Fund”) has been prepared and is issued by Seed Funds Management Pty Ltd ACN 675 247 506, a corporate authorised representative (No. 001308397) of its related body corporate, Seed Partnerships Pty Ltd AFSL 492973 (“Seed”). Seed is solely responsible for all content on this website, except for any disclosure documents (including the Product Disclosure Statement (“PDS”), Target Market Determination (“TMD”), or any other document expressly stated to be issued by Evolution Trustees Limited which are issued by Evolution Trustees Limited (ACN 611 839 519, AFSL No. 486217 (“Evolution”).
The website is not intended to provide advice to investors or take into account an individual’s financial circumstances or investment objectives. The information is general in nature and does not constitute personal financial advice. Investors should carefully read the PDS and TMD before making any investment decision. Copies of these documents are available from Seed or Evolution.
Neither Seed, nor Evolution, nor the Fund guarantee the repayment of capital or any rate of return from the Fund. No representation or warranty is given as to the accuracy, completeness, or reliability of the information on this website. Past performance is not a reliable indicator of future performance. To the maximum extent permitted by law, Evolution disclaims any liability for the content of this website, other than in respect of materials it has expressly issued as the responsible entity of the Fund. Investors should consult their financial adviser before making any investment decision.
^FUNDMONITORS FACTORS DISCLAIMER: The “tick logo” is provided by Australian Fund Monitors Pty Ltd (ACN 122226724, AFSL 324476) and is based on the FACTORS Report that was prepared in accordance with ASIC’s RG79 and contains general financial advice for wholesale and sophisticated investors and AFSL licensees. Recipients should consider their own financial circumstances and objectives prior to making any investment decision. No part of the report may be reproduced without permission. The content is updated monthly and only the current version should be used. For further information on the FACTORS research process please visit www.fundmonitors.com. Past returns do not indicate future performance.
^LONSEC RESEARCH DISCLAIMER: The rating published on 10/2025 for the Financial Income Fund is issued by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). Ratings are general advice only and have been prepared without taking account of investors’ objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec Research assumes no obligation to update. Lonsec Research uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. ? 2025 Lonsec. All rights reserved.