Firetrail Absolute Return Fund
Uncorrelated returns driven by fundamental research
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 +/-5%), 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%
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|
Typical net market exposure +/-5%
Max net market exposure range +/-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.|
|Xplore Wealth (Formerly Linear Managed Accounts)||✔|
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.
Disclaimer and disclosure
All website content in respect of the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian High Conviction Fund (ARSN 624 136 045), and the Firetrail Australian Small Companies Fund (ARSN 638 792 113) (“the Funds”) are issued by Pinnacle Fund Services Limited ABN 45 003 278 831 AFSL 235 150 (“PFSL”) as responsible entity of the Funds and is prepared by Firetrail Investments Pty Limited (ABN 98 622 377 913) (AFSL 516821) (“ Firetrail”) as the investment manager of the Funds. PFSL is not authorised to give financial product advice.
The information provided in this website is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision in respect of the Fund, you should consider the current product disclosure statement (PDS) of the Fund which are available at https://firetrail.com/products/, and assess whether the Fund is appropriate given your objectives, financial situation or needs. If you require advice that takes into account your personal circumstances, you should consult a licensed or authorised financial adviser.
Neither PFSL nor Firetrail guarantees repayment of capital or any particular rate of return from the Fund. Neither PFSL nor Firetrail gives any representation or warranty as to the currency, reliability, completeness or accuracy of the information contained in this website. All opinions and estimates included in this website constitute judgments of Firetrail as at the date of website creation and are subject to change without notice. Past performance is not a reliable indicator of future performance.
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (WHT5134AU assigned February 2019) 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
The Lonsec Ratings (assigned as follows: Firetrail Australian High Conviction Fund – assigned July 2019, Firetrail Absolute Return Fund – assigned July 2019) 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 Investments Pty Limited 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 Lonsec’s website at: https://www.lonsecresearch.com.au/research-solutions/our-ratings