Benefits of investing in the K2 Asian Absolute Return Fund

Investing in the Funds offers a range of benefits including:

Expertise

You benefit from the skill and experience of K2's dedicated equity investment team. K2's portfolio managers bring with them their own investment style while still adhering to the Funds' portfolio rules and guidelines.

Flexibility

The Funds invest in a diverse range of listed equities rather than reflecting an index or benchmark. Portfolio managers have the added flexibility to buy Long and sell Short as well as hold cash in different market cycles.

Liquidity

You can add to or reduce your investment on a daily basis.

Client Service

We will provide you with regular statements of your investment and updates on the performance of the Funds and current market conditions. You will also be able to track your investment at all times through our online investor portal at www.k2am.com.au.

Risk Management

K2 employs various risk management strategies including but not limited to stop loss guidelines and exposure limitations. Stringent compliance procedures are also implemented.

Investor suitability

These Funds may be suitable for you if:

• you have a long-term investment period;

• you seek diversification within traditional asset class exposure; and

• your risk tolerance is high and you are comfortable with the level of risk associated with each Fund.

About the Fund

The K2 Asian Fund invests in listed equities throughout the Asian Pacific region ex Japan. The fund aims to deliver long term growth by capitalising on investment opportunities present in all market cycles.

The K2 Asian Fund has a mandate to invest both long and short, seeking to provide investors with absolute returns.

Through the active management of equity, cash exposure and currency hedging, this strategy has delivered significant returns to clients since the fund's inception in 1999.

K2 Select International Fund investment philosophy

At K2, we focus on delivering superior risk adjusted returns for our clients over the long term. We invest in equities to generate positive returns and aim to preserve our clients' capital when market conditions change.

K2 has a flexible investment style as we believe that there is no one uniform cycle across the investment universe. By adopting the most appropriate style (for example, growth, value, momentum or income) that is best suited to the current market conditions allows K2 to maximise risk-adjusted returns.  Investment opportunities can come from any number of areas and as a result K2 incorporates top down macro-economic analysis with bottom up stock selection.

Each of K2's experienced investment managers brings their own investment style and methodology to our portfolios, combining their individual research with direct contact with companies.  Investment managers are encouraged to invest autonomously and pursue investment opportunities within a well-documented framework.  As a result, K2's portfolios tend to be high conviction and index unaware.  The investment team will always examine key investment variables, however, it is the team's ability to identify major investment themes and catalysts on a timely basis that gives K2 its competitive advantage. 

In addition to identifying undervalued stocks, K2 has the ability to actively manage equity market exposure and currency exposure as well as having the ability to short sell. These provide K2's portfolio managers with additional tools to deliver superior risk adjusted returns for our clients.

How we invest your money

The Funds primarily invest in listed equities across the Funds' various geographic regions. If deemed appropriate, the Funds may hold up to 100% cash. Consistent with typical industry practices, the reference to listed equities includes investments in entities that plan to list on the relevant securities exchange within the next 6 months. The Funds may also make other investments as permitted by the Funds' constitutions.

The Funds may also use exchange-traded and over-the- counter derivative instruments. Equities are denominated in their local currency. Currency is taken into account at the portfolio level and positions are adopted purely as a hedging tool to reduce overall currency risk.

Derivatives

If used, derivatives may include swaps, futures, options and forward contracts. Such instruments are used within the Funds sparingly and the Funds do not have pre-determined allocation ranges for these asset types. K2 will only engage reputable financial institutions (such as the Prime Broker) as a derivative counterparty.