Kardinia Long Short Fund
About this Fund
|The Fund will invest primarily in listed equities, derivatives and cash equivalent instruments issued by top tier Australian banks.
|The Fund aims to achieve double digit annual rates of return through an investment cycle, with an overarching philosophy of capital protection.
|RBA Cash Rate
|RBA Cash Rate
|NO. OF HOLDINGS
|1.99% p.a. (including GST net of reduced input tax credits) of NAV calculated daily and paid monthly
Benefits of investing in the Bennelong Kardinia Absolute Return Fund
Investing in a managed investment scheme can offer a number of benefits, including:
The Fund is suitable for investors who are seeking absolute returns from a portfolio of Australian and New Zealand investments and have a reasonable tolerance to risk.
About the Fund
The Kardinia Long Short Fund is a long/short Australian equity fund, with the long-term objective of achieving double-digit annual rates of return without compromising on capital protection. Core to the strategy is fundamental stock selection to create a high conviction portfolio of between 20-50 stocks.
The Fund is a unit trust targeting absolute returns. In order to achieve the risk/return objectives of the Fund, a variety of strategies are employed in a portfolio of Australian and New Zealand listed equities, derivatives and cash. These strategies include:
The strategy will produce investment returns dependent on the asset allocation and investment selection skills of the investment team. The success of the Fund's investment strategy will depend on market conditions and may be influenced by specific risk factors set out in Section 4 of the PDS.
The Responsible Entity may, at its discretion, alter its investment objectives and strategy. Whilst there is no intention to change the investment strategy, you will be provided with written notice of any such changes.
How we invest your money
The Fund will invest primarily in listed equities and cash equivalent instruments, with exchange traded and over-the-counter derivatives used to hedge market and company specific risks, and to gain market exposure to underlying securities. The Fund will not invest in unlisted investments (unless they are pending listing).
The Fund will employ the following key exposure limits:
The Investment Manager may from time to time temporarily exceed the exposure limits of the Fund, particularly during periods of market volatility, to allow for overweight holdings where the increase in value of the underlying security is due to market movements.
The Responsible Entity reasonably expects that it will be able to realise at least 80% of the assets of the Fund, at the value ascribed to those assets in calculating the Fund's Net Asset Value, within 10 days.
The investment strategy is to not borrow money to generate financial leverage. However, the Fund may become leveraged through the occasional use of derivatives (such as options) and short selling which form part of the investment strategy of the Fund. The primary derivative and short selling counter-party used is the Prime Broker. There is no leverage embedded in the other assets of the Fund.
Derivatives are primarily used for the purpose of hedging physical positions where required. They can be used to hedge overall market risk at the portfolio level or to manage individual stock risk.
Derivatives can also be used to gain market exposure to underlying securities. The majority of the derivatives activity relates to efficient portfolio management, which enables the portfolio managers to gain access to particular markets more quickly or cheaply using derivatives than through the underlying instruments.
The types of derivatives are exchange traded derivatives and over-the-counter derivatives, limited to futures, exchange traded options, warrants, company issued or over-the-counter options on securities listed in the authorised investments mentioned above, as well as investments listed on US stock exchanges.