Firetrail Absolute Return Fund
The Fund aims to outperform the RBA Cash Rate over the medium to long term.
The Fund is an absolute return fund which aims to generate positive returns in all market environments.
The Fund is typically expected to be market neutral (net market exposure generally between 0% – 10%), which effectively means the Fund is constructed in a way where returns are not dependent on the performance of the underlying share market.
The Fund achieves market neutrality by investing in a combination of long and short positions in equity securities listed, or expected to be listed, on the Australian Securities Exchange (ASX), as well as international markets. Exposure may also be through the use of derivatives.
Long only positions are selected using in-depth fundamental analysis. The short portfolio is constructed using a combination of fundamental analysis, systematic strategies and other value-adding strategies.
James Miller, Patrick Hodgens
Unlisted, open-ended Australian unit trust
Semi-annually, subject to the Fund having sufficient distributable income as at 30 June and 31 December.
Management fee 1,2
Performance fee 3,4
20% of the Fund’s excess return versus its benchmark, net of the management fee
Minimum initial investment5
Buy / sell spread
+ 0.50% / – 0.50%
Firetrail Absolute Return Fund Performance (after fees)*
|1 year (%)||3 years (% pa)||5 years (% pa)||Inception (%)|
|Firetrail Absolute Return Fund||–||–||–||3.07|
|RBA Cash Rate||0.75|
Prices and distributions
Prices and distributions
The Fund’s key investment guidelines are summarised below. For further details, please refer to the latest Product Disclosure Statement.
|Benchmark||RBA Cash Rate|
|Market exposure||Typical net market exposure 0-10
Max net market exposure range -10% to 30%
Derivatives may be used to gain equities exposure up to a max of 200% of the net asset value of the Fund.
|Suitable investor profile||The Fund may be suitable for investors who are looking to outperform the RBA Cash Rate over the medium to long term and are prepared to accept the risks of the Fund set out in section 6 of the Product Disclosure Statement.|
|Suggested investment timeframe||5 years or more|
|Borrowings||The Fund will borrow stock to enable short positions as part of the investment strategy. The Fund will not borrow cash.|
|Linear Managed Accounts||✔|
* Inception date is 14 March 2018, performance as at 13 September 2018
1.The management fee is payable to the Investment Manager for managing the investments of the Fund. The management fee is calculated on the Fund’s net asset value, reflected in the daily unit price and payable monthly in arrears from the Fund.
2.Fees are inclusive of GST and of any applicable reduced input tax credits (‘RITC’).
3.The performance fee is calculated and accrued each business day and is payable quarterly, if applicable
4.The Fund’s benchmark is the RBA Cash Rate. Refer to ‘Performance fees’ information in ‘Additional explanation of fees and costs’ in the Product Disclosure Statement for further information.
5.The Responsible Entity has the discretion to accept lower initial investments. Does not apply to IDPS investments.
^The portfolio allocation ranges provided are indicative only. The Fund will be rebalanced within a resonable period of time should the exposure move outside these ranges. The Fund is typically expected to be fully invested. A portion of the portfolio may be allocated to cash or derivatives for liquidity purposes. The Fund may hold exchange traded derivatives to a maximum of 10% of the Fund’s NAV.
** The Lonsec Ratings (assigned as follows: Firetrail Absolute Return Fund – August 2018) presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to ‘General Advice’ (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Firetrail products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria.
For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsecresearch.com.au/research-solutions/our-ratings
*** The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (WHT5134AU assigned May 2018, WHT3810AU assigned June 2018 ) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at https://www.zenithpartners.com.au/regulatory-guidelines-funds-research