Asset Management

AUSTRALIAN EQUITIES LONG SHORT

Overview:

This is an Australian Equities alternative strategy with an absolute return focus that invests in exchange traded funds (ETF’s) and direct securities that are listed on the Australian Stock Exchange. The strategy aims to take advantage of the cyclical nature of market and/or sector cycles by being more aggressive when markets and/or sectors are deemed to be oversold/undervalued and by being more cautious when markets and/or sectors are deemed to be overbought/overvalued. Short funds which are designed to profit from market downturns and in doing so partially offset portfolio losses may be used with the primary purpose to reduce short term volatility, protect capital from larger downside risks and provide benefits in down trending markets. Because of the strategies cyclical focus and absolute return bias the portfolio can have from minus 50% to positive 100% exposure to equities. Minimum suggested timeframe is 5 years.

 

Ideal for investors who are:

  • Looking for exposure to a potentially high growth strategy
  • Concerned about cyclical market downturns similar, to the GFC event
  • Looking to diversify their equities strategy

 

Returns:

Objective for this strategy is 10% p.a. net of fees over rolling 5 year periods with the expected range of returns for any given year generally falling between minus 20% and positive 50%. The expected return range is based on historical market performance including the potential long/short benefits of this strategy.

 

Fees:

Because this is an actively managed benchmark unaware strategy we charge a management fee of 0.55% p.a. along with an annual performance fee for returns over and above 8% p.a. Other fees such as platform administrator fees and brokerage may also apply. Our return objective above is net of all fees (excluding taxes).

Does your share portfolio have a strategy for the downturns?