Aurora Absolute Return Fund
About this Fund
|FUND MANAGER||Aurora Funds Management|
|ASSET CLASS||LISTED INVESTMENT COMPANY|
|INVESTMENT STYLE||ABW invests in the Master Fund which uses several different investment strategies.|
|INVESTMENT PROFILE||ABW aims to achieve an income return, whilst seeking to preserve the capital of the Fund over both rising and falling equity markets.|
|BENCHMARK||RBA Cash Rate|
|FUND SIZE||RBA Cash Rate|
|NO. OF HOLDINGS|
Aurora Funds focuses on delivering income to its investors whilst reducing the risk to the capital invested. Aurora uses derivative instruments including options, futures contracts and short selling to reduce the risk, or market exposure of our funds. The senior staff within our investment management team have worked within global investment banks that allowed them to hone their skill sets that are now applied to the investment funds that Aurora offers.
The Master Fund seeks to take advantage of market mispricing and arbitrage opportunities using a diverse range of investment strategies. The Responsible Entity of the Fund researches various criteria for each investment, including fundamental and quantitative analysis, company event situations such as takeovers and mergers, earnings announcements, demergers and restructuring, liquidity events, recapitalisations, multiple share classes, option availability and pricing.
The Master Fund will invest in opportunities that are considered to offer attractive risk return characteristics with a focus on potential catalysts that seek to generate a profitable return regardless of the market direction. The Master Fund may use derivatives for risk management as well as to create new positions and may opportunistically short sell securities that may be overpriced or to reduce risk on the overall portfolio.
About the Fund
Aurora Funds Management Limited ("Aurora) is an Australian-based alternative asset manager that specialises in absolute-return strategies for high net worth, retail and institutional investors. Aurora specialises in value-orientated event-driven investments that aim to provide investors with positive risk-adjusted returns that are independent of benchmarks or investment cycles.
Our investment philosophy is to offer you independently researched investment ideas & products that are well managed and provide excellent portfolio diversification.
The investment strategy aims to achieve an income return, whilst seeking to preserve the capital of the Fund over both rising and falling equity markets. The pursuit of a diverse range of investments means that the Fund's returns are not necessarily dependent on the stock market's direction, or dependent on any specific assumption or key market parameter. The Fund does not seek to replicate the standard industry benchmarks.
In order to meet the income needs of investors the Master Fund currently intends to pay a distribution of at least 1.0% of Net Asset Value per quarter in cash, plus available franking credits paid annually, the amount of distributions paid from the Master Fund (if any) to unit holders may fluctuate on a year-on-year basis, as may the Fund's unit price.
How we invest your money
The Manager has a wide discretion over the investments that may be held by the Master Fund. The pursuit of a diverse range of investments means that the Master Fund's returns are not necessarily dependent on the stock market's direction, or dependent on any specific assumption or key market parameter. The Master Fund does not seek to replicate the standard industry benchmarks.
In selecting investments for the Master Fund the Manager follows a rigorous investment selection process which includes detailed qualitative and fundamental research. The catalyst for the Master Fund to enter a trade is identifying mispriced risk. This is assessed in the context of a broad portfolio of listed equities, options, and other instruments. The Investment Manager continually evaluates market indicators or risk, and seeks opportunities across a range of strategies - whilst having regard to the expected time horizon of each investment.
Once an investment decision is made, the implementation of the trade is conducted in parallel with an active focus on risk management. The Master Fund uses derivatives for risk management as well as to create new positions.
The Master Fund invests in opportunities that it considers to offer attractive risk return characteristics with a focus on potential catalysts that seeks to generate a profitable return regardless of the market direction.