Firetrail Australian High Conviction Fund

A concentrated portfolio of our best ideas in Australian equities

Fund objective

The Fund aims to outperform the S&P/ASX 200 Accumulation Index over the medium to long term.

Key features

The Fund provides exposure to a concentrated portfolio of approximately 25 Australian securities at any time. Only those securities that our investment team has the highest conviction to generate the greatest returns will be included in the portfolio.

The process employs an unconstrained approach to fundamental research to identify companies we believe offer the most attractive forecast returns based on our medium-term view.

Portfolio Managers

James Miller, Patrick Hodgens, Blake Henricks

Legal structure

Unlisted, open-ended Australian unit trust

Distribution

Semi-annually, subject to the Fund having sufficient distributable income as at 30 June and 31 December.

Management fee 1,2

0.95% p.a.

Performance fee 3,4

15% of the Fund’s excess return versus its benchmark, net of the management fee

Minimum initial investment5

A$20,000

Buy / sell spread

+ 0.25% / – 0.25%

Performance

Firetrail Australian High Conviction Fund Performance (after fees)*
1 year (%) 3 years (% pa) 5 years (% pa) Inception (%)
Firetrail Australian High Conviction Fund (4.00)
S&P/ASX 200 Accumulation Index 0.46
Outperformance/underperformance (4.46)

Prices and distributions

Key information

Investment guidelines

The Fund’s key investment guidelines are summarised below. For further details, please refer to the latest Product Disclosure Statement.

APIR WHT3810AU
Benchmark S&P/ASX 200 Accumulation Index
Portfolio allocation^

Australian and New Zealand equities: Typically 0 – 90%

Cash: 0 – 10%

Stock numbers Approximately 25
Suitable investor profile The Fund may be suitable for investors who are looking to outperform the S&P/ASX 200 Accumulation Index over the medium to long term and are prepared to accept the risks of the Fund set out in section 4 of the Product Disclosure Statement.
Suggested investment timeframe 5 years or more
Short selling Not permitted
Borrowings Not permitted

Investor Forms

Investor Forms
Available Platforms
AMP North
Asgard
BT Panorama
BT Wrap
HUB24
IOOF Platforms
Linear Managed Accounts
Macquarie Wrap
Netwealth
uXchange
Ratings

 **

 ***

* Inception date is 14 March 2018, performance as at 31 October 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 S&P/ASX 200 Accumulation Index. 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 Australian High Conviction 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