Arrow Fund

The Arrow Fund is an Australian Focused Equity Long Short, offering investors potential significant long-term returns uncorrelated to other markets.

Strategy

Australian focussed equity long short. The Arrow Fund offers investors potential significant long-term returns uncorrelated to other markets.

Competitive Advantage

For truly boutique-sized hedge funds there exists persistent opportunity to generate absolute returns through actively managing a long short equities portfolio within the Australian market.  Enduring alpha can be found through the construction and implementation of a series of winning trades that are actively managed and hedged against changing market backdrop.

The Arrow Fund aims to repeat the investment performance of Charlie Brown’s contribution to the KIS Asia Long Short Fund which generated net returns to investors of 11.76% net of fees over a 10 year period.

Portfolio Manager

Monthly Performance
Performance VAMI
Statistics

Key information

INVESTMENT GUIDELINES

 

Arrow

Geographical Focus

Australia

Sector Focus

None

Target Return

10%

Long Short Bias

None

Beta to Global Equities

0.0-0.2x

Volatility Target

5-7%

Typical Gross Exposure

70-100%

Typical Net Exposure

+/-20%

Regional & Sector Limits

None

Typical Position Size

2-5%

Number of Long Positions

20-40

Number of Short Positions

0-10

Volatility Target

5-7%

 

 FUND TERMS

The Funds key terms are summarised below.  For further details please refer to the latest Information Memorandum.

Fund Name Arrow Fund
Trustee Quay Fund Services
Investment
Manager
Coaster Capital
Prime Broker &
Custodian
Morgan Stanley
Fund
Administrator &
Unit Registry
Apex Fund Services
Investment
Strategy

The Investment Manager’s geographic focus is Australia. The Investment Manager may take exposures outside of Australia to the extent that the exposure is intended to mitigate risk or enhance return from factors external to the Australian market.

Whilst the Investment Manager’s primary strategy is focused on long/short Australian equities, the ability to retain discretionary powers to allocate funds across a number of other investment strategies and asset classes is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage and special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.).

Investment
Objective
The Investment Manager will seek to deliver positive absolute returns while seeking to preserve capital.
Investor Eligibility Wholesale Clients, as defined in the Corporations Act 2001
Fund Benchmark The Reserve Bank of Australia Cash Rate
Minimum Investment $50,000
Management Fee 2% per annum (plus GST) of the Net Asset Value of the Class, calculated monthly and payable monthly in arrears.
Performance Fee 20% per year of the increase in Net Asset Value (NAV) per Unit above the Benchmark Performance, subject to the High Water Mark.
Buy/Sell Spread Nil
Entry Exit Fees Nil
Applications Monthly on subscription day
Redemptions Monthly, with 30 days’ notice, subject to possible suspensions in certain situations – refer to Information Memorandum
Valuations Monthly, on the last calendar day of the month
Distributions Annually as at 30 June
 
  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 monthly unit price and payable monthly in arrears from the Fund.

  2. Fees are exclusive 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 semi-annually, subject to the high-watermark, and only if applicable

  4. The Trustee has the discretion to accept lower initial and subsequent investments.