WaveStone Dynamic Australian Equity Fund
About this Fund
|FUND MANAGER||WaveStone Capital|
|ASSET CLASS||AUSTRALIAN EQUITIES|
|INVESTMENT STYLE||The Fund invests primarily in a concentrated portfolio of Australian and New Zealand securities.|
|INVESTMENT PROFILE||The Fund aims to provide capital growth over the long term (at least five years).|
|CURRENCY MANAGEMENT||Active management|
|NO. OF HOLDINGS||25-50|
|FEES||0.99% p.a. of the net asset value of the Fund|
Benefits of investing in the WaveStone Dynamic Australian Equity Fund
The Fund is intended to be suitable for investors who are happy to invest for at least five years, are seeking high levels of return and are comfortable with high volatility, including the possibility of periods of negative returns.
About the Fund
The WaveStone Dynamic Australian Equity Fund offers investors a benchmark unaware long/short Australian equities opportunity with the objective to add value over the long term through a high conviction portfolio.
The Fund aims to provide capital growth over the long-term (at least five years) and tax-effective income through investing primarily in a concentrated portfolio of Australian and New Zealand securities. Individual positions within the Fund are not managed in a way that attempts to track any stock index weighting.
Established in 2006, WaveStone is a boutique Australian equities fund manager with an active, high conviction approach to investment management.
WaveStone aims to enhance the returns to investors by thoroughly analysing companies to determine sustainable competitive advantage. The key to this analysis is identifying companies which WaveStone believes display superior corporate DNA and operate within favourable industry dynamics which can deliver above market earnings growth. WaveStone considers the taxation consequences of investment decisions to be an important part of its investment philosophy.
How we invest your money
WaveStone is an active investment manager that places primary emphasis on bottom-up stock picking through comprehensive research, instead of targeting a market index exposure.
WaveStone's investment approach focuses on companies which WaveStone believe exhibit Sustainable Competitive Advantage (SCA). A company's SCA is determined after analysing its corporate make up or DNA' and the broader industry dynamics within which it operates. WaveStone then applies a set of valuation, balance sheet and growth tests to further refine the number of companies that are considered suitable for the portfolio.
Investment universe and portfolio construction
The Fund is a concentrated portfolio of typically between 25 and 50 companies listed, or intended to be listed within 12 months, on Australian, New Zealand and international stock exchanges in other developed markets. The Fund may invest up to 30% of the Fund's net asset value in securities listed on New Zealand exchanges and up to 10% of the Fund's net asset value in securities listed in other developed markets. The maximum total exposure across both New Zealand and other developed markets is 30% of the Fund's net asset value. It can also enter into underwriting agreements relating to shares able to be held by the Fund provided there are sufficient liquid assets in the Fund to cover such obligations. The Fund may short sell a security where it believes that a security is overvalued or for hedging purposes. The Fund may use options, futures and other derivatives to achieve its performance objective. WaveStone can gear the Fund by borrowing cash to invest in securities. Derivatives may also be used to reduce risk or gain exposure to other types of investments.
Portfolio construction guidelines are applied to ensure the final portfolio is consistent with the Fund's objectives and is managed in a risk-controlled manner.
Strategic asset allocation ranges