Investment objective
The Fund aims to generate positive (absolute) returns, regardless of market conditions, over any 3-year period. A positive return is not guaranteed over this or any time period and, particularly over the shorter term, the Fund may experience periods of negative returns. Consequently, your capital is at risk.
Performance Target: To outperform the Secured Overnight Financing Rate by at least 4% per annum, before the deduction of charges, over any 3-year period.
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The Fund invests in a global, diversified portfolio of derivatives (complex financial instruments), including index futures, interest rate futures, short-term interest rate futures, equity futures, bond futures, currency futures, swaps (such as index credit default swaps, interest rate swaps and total return swaps) contracts for difference, options and forwards. The use of derivatives is extensive. Exchange traded futures and total return swaps are core to the investment strategy and used on a predominant basis. Other derivatives may be used on an ancillary basis and as market conditions dictate.
The Fund may also gain exposure to fixed income (debt) instruments such as investment grade government bonds and investment grade or high yield corporate credit indices accessed through derivatives. There is no limit on the debt securities or government securities rated below investment grade, but any such exposure is expected to be small. The Fund may also gain indirect exposure to commodities using eligible Transferable Securities (such as structured notes) and/or derivatives whose underlying assets consist of commodity indices.
Allocations across asset classes will be made at the Investment Manager’s discretion and the Fund need not be invested in all asset classes at any one time. It follows an unconstrained investment approach, with no regional or sector constraints.
The Fund will hold a substantial proportion of its assets in cash, bank deposits and money market instruments as a result of holding derivatives or for asset allocation purposes.
The Fund is actively managed and makes reference to the Secured Overnight Financing Rate, as this forms the basis of the Fund’s Performance Target and the level above which performance fees may be charged (if applicable). The Investment Manager has complete discretion to choose investments for the Fund and is not constrained by a benchmark.
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The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
This website is a Marketing Communication and does not qualify as an investment recommendation.
About this fund
Systematic strategy that seeks to capture trends across a diverse range of assets within fixed income, interest rate, equity, commodity and currency markets. The portfolio is managed with end-to-end systematic construction and risk management, with the objective of generating positive absolute returns, with low correlation to traditional asset classes, in markets which are positively or negatively trending.
Disciplined diversification
Systematic strategy that seeks to capture trends across a diverse range of markets.
Alpha opportunities
Utilises a crossover trend signalling model to identify turning points in markets while limiting portfolio turnover in ‘noisy’ or trendless markets.
Risk factor management
Agnostic risk parity approach to portfolio management, designed to spread risk factors evenly across the portfolio.