Horizon Fund

Global Infrastructure & Utility Sector (GLI) Focused Equity Long Short.

Objective

Potential for significant long-term capital growth with less correlation or drawdowns typically related to long-only investments in global listed infrastructure and utilities.

Competitive Advantage

Long Short provides tools to achieve positive absolute returns by managing downside risk and reducing volatility & beta, through actively managing gross and net exposure.

Long Short provides additional sources of alpha compared to pure long only GLI, such as exploiting valuation gaps between stocks (pair trades) and shorting overvalued stocks.

Portfolio Manager

Tim Snelgrove

  • 10 years’ experience as an analyst, trader & PM at RARE Infrastructure, a dedicated global infrastructure and utilities fund manager in Sydney & London 
  • Experience designing and running dedicated income enhancement overlays for income products, primarily over and underwriting programs
  • Built & managed a global trading desk of 3 traders in Sydney & London, responsible for best execution across equities & FX, global trading relationships, trading systems & tools, CSA programmes & TCA outcomes
  • Prior experience at Merrill Lynch in Hedge Fund Sales & derivatives, covering special situations and events
  • B Commerce (Liberal Studies) from University of Sydney and holds a Chartered Alternative Investment Analyst designation (CAIA)
Monthly Performance
Performance VAMI
Statistics

 

Key information

INVESTMENT GUIDELINES

 

Horizon

Geographical Focus

Global

Sector Focus

Global Listed Infrastructure & Utilities

Target Return

10%

Long Short Bias

Long biased directional

Beta to Global Equities

0.2-0.4x

Volatility Target

5-7%

Typical Gross Exposure

80-160%

Typical Net Exposure

+20-60%

Regional & Sector Limits

None

Typical Position Size

3-5%

Number of Long Positions

20-40

Number of Short Positions

0-20

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 Horizon 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.).
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 1.5% per annum (plus GST) of the Net Asset Value of the Class, calculated monthly and payable monthly in arrears.
Performance 15% 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.