Alternative Investment
Candour Alternative Income Fund
APIR CODE: NPW4463AU ISIN: AU60NPW44638
Fund Overview
The Candour Alternative Income Fund aims to generate income and a moderate level of capital growth while maintaining a low to neutral correlation to other asset classes.
The Fund’s objective is to maintain a low-risk profile across changing markets by using quantitative strategies that actively adjust weightings and directional exposure in response to changing market conditions.
Target Return
The Fund aims to achieve 10-12% p.a. total return (net of fees, inclusive of distributions)
Reasons to invest
- Uncorrelated to other asset classes
- Ability to generate income in times of uncertainty
- Actively managed quantitative model driven by AI and machine learning
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Investment Strategy
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Initial Holding Period
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Distribution
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Liquidity
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Subscription
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Minimum Investment
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Fees and Costs
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Risks
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.
Application
To invest in the Fund, you will need to:
- Read the Fund’s Information Memorandum;
- Complete and sign the Fund’s Application Form online;
- Provide required supporting documents; and
- Wholesale certificate
Please contact the Investment Manager if you need assistance in the application process or provide the appropriate documentation to certify that you are a wholesale client.
Investment Manager
Candour Capital Pty Ltd
ACN 624 618 971 | Corporate Authorised Representative 001267726
Level 13, 465 Victoria Avenue, Chatswood NSW 2067
Candour Capital was established in 2018 in Sydney. Specialising in fixed income investments and global macro strategies, the investment committee has a combined over 40 years of industry experience & relationships which they leverage to identify alpha generating deals. The firm is dedicated to delivering results for its clients through an innovative and forward-thinking approach.
As quantitative investors, Candour lives at the nexus of economics, behavioural finance, data and technology — continuously exploring what drives markets and applying its findings in a systematic and disciplined way. Candour are focusing on R&D to further develop their proprietary model in the areas of artificial intelligence.Trustee
Newport Private Wealth Pty Ltd
ACN 166 931 960 | AFSL 451820
Level 21, 55 Collins Street, Melbourne VIC 3000
Newport Private Wealth Pty Ltd ("Trustee") is a professional asset management firm licensed by the Australian Securities & Investments Commission ("ASIC") to service the wholesale investor market. The Trustee has been appointed as trustee of the Fund to act on behalf of Investors and provide oversight in respect of compliance of the Fund with the Corporations Act 2001 and ASIC guidelines. The Trustee is the holder of Australian Financial Services Licence No.428289 ("AFSL) which permits it to advise and deal in a range of financial products and to provide incidental custody.