About the Fund
The core objective of the Fund is to provide investors with long-term capital growth and income by investing in quality Australian companies while implementing discretionary strategies to magnify returns and preserve capital.
The Fund aims to outperform the Australian All Ordinaries Index annually on a net of fees basis.
There is no guarantee that the Fund will achieve this objective. It is merely an indication of what the Investment Manager is seeking to achieve over the relevant period. Returns are not guaranteed. The objective does not take into account an individual investor’s tax position or the impact of fees on returns.
The Investment Manager employs a quantitative and discretionary approach, focussing on companies displaying a positive and sustainable earnings growth trajectory.
The Investment Manager may also choose to move the Fund’s assets entirely to cash during times of uncertainty or market volatility; the philosophy being to maintain objectivity over a long-term investment horizon.
The Investment Manager has the capability and depth of experience to invest in listed equities across a wide range of market sectors and industries located in Australia.
The Investment Manager will implement the strategy using a thematic bottom-up fundamental approach, in order to assess the merits of the relevant company objectively. Active technical insight drives discretion to ensure market conditions and sentiment is supportive, integral to risk management controls.
Assuming inclusion criteria has been met, and broader conditions are supportive, the Investment Manager aims to maintain an unconstrained concentration of approximately 20 companies in the Fund’s portfolio.
Throughout the process, the Investment Manager's primary focus is on stock selection. Therefore the portfolio's weightings may differ significantly from those of the Benchmark. The fund will utilise an approximately equal-weighted method, rebalancing holdings as a result of price movements.
Risk control features of the Portfolio will include:
- Concentration Limits. The Investment Manager will seek to limit the maximum exposure to any single investment at 5% of the Net Asset Value of the Fund, as at the time of investment.
- Efficient Portfolio Management (EPM). The Investment Manager will utilize trailing stop profit/losses for each position within the Fund.
- Index Market Sentiment Filter. The Investment Manager applies an Index filter which determines whether new positions will be taken.
- Liquidity Filter. The Investment Manager utilises a liquidity filter that ensures that any position taken by the fund can be entered/exited in a timely manner and without overly affecting market pricing.
The types of investments undertaken by the Fund will reflect the objective of the Fund and the investment strategy adopted.
The Investment Manager has the discretion to vary the types of investments of the Fund as set out in this Information Memorandum, but will give Unitholders prior notice of any significant alteration to the Fund’s objectives or strategy.
The Fund may invest in a range of asset classes including:
- Australian listed securities/ listed ETF's (in both developed and emerging markets); and
- Cash and cash equivalent investments (for example treasury bonds and certificates of deposit).
The Fund does not intend to borrow funds for investment or other purposes.
