Potential for significant long-term capital growth with less correlation or drawdowns typically related to long-only investments in global listed infrastructure and utilities.
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.
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 |
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.
Fees are exclusive of GST and of any applicable reduced input tax credits (‘RITC’).
The performance fee is calculated and accrued each business day and is payable semi-annually, subject to the high-watermark, and only if applicable
The Trustee has the discretion to accept lower initial and subsequent investments.