Adelaide plans high-yield income fund linked to bank loans

Adelaide Bank said it would establish an independent board for its funds management arm, Adelaide Managed Funds. The bank said it more than doubled funds under management over the last year to $2.3 billion. Adelaide Bank said AMF would soon market an ASX-listed trust that will invest in high yielding asset-backed securities. The bank said this trust aims to sell $300 million in two instalments, but did not offer further details. No doubt the trust will emerge as an active investor in the sort of asset-backed securities that Adelaide is specialising in creating from assets such as mortgages and agribusiness investment loans funded at present on the bank's own balance sheet.