The Fund will deploy a quantitative strategy intended to capture the persistence of positive carry and arbitrage opportunities observed in global financial markets. The Fund's investment methodology represents a strategy to exploit market inefficiency, particularly in the forward curve of the futures market.
6 months (from the first business day on which Fund allocates units to the respective unitholders)
The Fund intends to pay distributions monthly.
*Distributions are subject to realized profit and loss, paid only on months there is positive realized returns.
Monthly (after initial holding period of 6 months)
*Fund has monthly liquidity after the end of month 6 from the unit issuance date.
Monthly with 10 business days’ notice prior to Dealing day*
*Last day of the calendar month.
Initial - $100,000. Additional investments - $50,000.
Management Fee
2.0% (plus GST) per annum of the gross asset value of the Fund as at the end of each month. Management Fee will be paid monthly in arrears.
Performance Fee
The Investment Manager is entitled to a Performance Fee of 25% (plus GST) based on the rate of return. The Performance Fee is calculated and paid monthly and is intended to create an incentive for the Investment Manager to achieve a higher return on a risk adjusted basis.
The formula for the Performance Fee is outlined below:
PF = 25% * ((CUP – (PUP+HR)) * NB)
Where:
PF: the amount of the Performance Fee
CUP: the Unit Price (after all fees but before any distributions) on the last business day of the relevant month
HR: the hurdle rate (the benchmark’s return for the period)
PUP: the Unit Price (after all fees and any distributions)on the last business day of the previous month
NB: the aggregate number of outstanding units on issue on the last business day of the relevant month.
If PF is a negative number, no Performance Fee is payable.
Trustee Fee
0.10% (plus GST) per annum of the gross value of the assets
All investments carry risks including the potential for loss of income or capital, a less than expected rate of return or a delay in payment. Different investment strategies may carry different risk, depending on the assets that make up the investment strategy. Before making an investment decision, it is important to understand the risks that can affect the value of your investment.
Key risks that may apply to an investment in the Fund include but are not limited to:
Market and Economic Risk
All investment returns are influenced by the performance of the market to which the underlying investments are exposed. These market forces may impact adversely on the global corporate debt market or listed equities market, which in turn could affect the performance of an investment in the Fund.
Investment Risk
The success and profitability of the Fund will largely depend upon the ability of the Investment Manager to make investment decisions which generate a positive return for the Fund. This includes the Manager selecting investment strategies form time to time and the Investment Committee that is responsible for each selected investment strategy making investment decisions. The historical performance of the investment strategies does not represent the future behaviour of the Fund or its performance.
No Guarantee of Performance
Neither the money that an Investor has invested in the Fund, or the returns earned from their investment are guaranteed. A lack of performance by the Fund may mean there is insufficient income for the Fund to meet its investment objectives, in particular its yield objective.
Other risks of investing in the Fund are contained in the Information Memorandum (IM) of the Fund. Contact us to get a copy of the IM.
