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

Strategy Composite Performance as at 30 September 2019 (after fees)*
Month Quarter 6 Mnth 1 Yr Fund Incept** 3 Yrs (pa) 5 Yrs (pa) 10 Yrs (pa) Strategy Incept****
Fund* 0.76% 0.93% 5.05% 0.69% 2.73%
Strategy Composite*** 0.76% 0.93% 5.05% 0.69% 11.31% 12.35% 11.54% 9.82%
Benchmark 1.84% 2.37% 10.53% 12.47% 12.65% 13.55% 9.24% 10.22% 7.40%
Out/Underperformance -1.08% -1.44% -5.48% -11.77% -9.92% -2.24% 3.11% 1.33% 2.42%

Latest Performance Report

Past performance is not a reliable indicator of future performance.

*Firetrail Australian High Conviction Fund (‘Fund’). Net Fund returns are calculated based on exit price with distributions reinvested, after ongoing fees and expenses but excluding taxation. **Fund inception is 14 March 2018. ***The Fund has been operating since 14 March 2018. To give a longer-term view of our performance for this asset class, we have also shown returns for the Firetrail Australian High Conviction Strategy Composite (‘Strategy’) which has been operating since 29 November 2005. Strategy performance has been calculated using the monthly returns (after fees) of the Fund from 14 March 2018 to current date, as well as the monthly returns of the Macquarie High Conviction Fund (after fees) between 29 November 2005 to 23 November 2017. The Fund employs the same strategy as was used by the same investment team that managed the Macquarie High Conviction Fund as at 23 November 2017. Firetrail has records that document and support the performance achieved as the Macquarie High Conviction Fund. The composite returns for the Strategy and the S&P/ASX 200 Accumulation Index (Benchmark) exclude returns between 24 November 2017 and 13 March 2018. During this period the investment team did not manage the Strategy. As such, the annualised performance periods stated are inclusive of the combined composite monthly returns, and do not include the period when the team were not managing the Strategy. For example, the annualised return over 3 years for the Strategy and benchmark are inclusive of 36 monthly performance periods available in the composite return period, excluding the period between 23 November 2017 and 13 March 2018. For additional information regarding the performance please contact us through the link on our website. Net Fund returns are in AUD terms. Net Fund returns are calculated based on exit price with distributions reinvested, after ongoing fees and expenses but
excluding taxation. Past performance is for illustrative purposes only and is not indicative of future performance. ****Strategy inception 29 November 2005.

 

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
AMP PortfolioCare
Asgard
BT Panorama
BT Wrap
CFS FirstWrap
FNZ
HUB24
IOOF Pursuit
Linear Managed Accounts
Macquarie Wrap
Mason Stevens
MLC Navigator
MLC Wrap
Netwealth
uXchange

 

Ratings

**

 

 

 

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 Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (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