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Strategies


Karara Market Neutral Plus Fund

The Karara Market Neutral Plus Fund is an unregistered managed investment scheme open to wholesale investors.

Investor profile

The Fund is an absolute return fund that aims to generate positive returns in all market environments by reducing the majority of market risk, focussing on capital preservation and exploiting individual stock mis-pricings.

Karara Capital suggests an investment horizon of at least five years.

Read recent strategy updates

Investment objective

To outperform the RBA Cash Rate (after fees) over rolling five year periods.

Investment strategy

The Fund will typically invest in securities listed (or to be listed) on the ASX, Australian exchange traded derivatives and Australian denominated cash. The Fund may also invest in Global REITs, Infrastructure related securities and Utilities related securities listed on developed market exchanges.

Although the Fund is authorised to invest in Australian exchange traded derivatives, OTC derivatives are NOT permitted.

The following portfolio construction guidelines will generally apply:
•    Target number of positions: 30-100 (combined Long and Short)
•    NET equity exposure: Minimum -50% / Maximum +80% of NAV 
•    Maximum GROSS exposure: 400% (200% Long and -200% Short) of NAV 
•    Maximum individual security exposure*:
ASX100 securities +/-30% of NAV,
ASX101-200 +/-20% of NAV,
Ex-200 securities +/-10% of NAV; and
Global REITs +/-10% of NAV. 
*Where the maximum individual security exposure exceeds the stated limit due to market movements, the Investment Manager will dispose of any securities within a reasonable period.

Fees

Management fee: 1.50% pa
Performance fee: 20% of performance above benchmark provided specified performance hurdle is met.
Fund expenses:  Capped at 0.20% pa of the NAV

Fees are inclusive of GST and net of RITCs

Performance as at 30th November 2019

 

Karara Market Neutral Plus Fund 1 mth 3 mths 1 yr 3 yr 5 yr Inception
Gross return 2.76% 8.81% n/a n/a n/a 18.94%
Net return 2.03% 6.57% n/a n/a   n/a 13.93%
RBA Cash Rate  0.06%     0.21% n/a n/a n/a 0.49%
Outperformance (net of fees)

1.96%

6.36% n/a n/a n/a 13.44%
Inception date: 1 June 2019. Periods greater than 1 year are annualized. Returns are based on exit prices of series 1 units, assume all distributions are reinvested and are net of fees. Gross returns are calculated using the net returns and adding back the MER and performance fees, where applicable. Past performance is not a reliable indicator of future performance.

 

Other information

Trustee: Perpetual Trustees Services Limited

Investment Manager: Karara Capital Pty Limited

Prime broker & Custodian: Deutsche Bank AG (London Branch)

Administrator: Link Fund Solutions

Distributions: Semi-annually as at 31 December and 30 June

Buy/sell spread: 0.25%

Applications: Monthly with notice to be received by 2pm on the last business day of the month

Withdrawals: Monthly with notice to be received 10 days prior to the last business day of the month.

Karara Market Neutral Fund - Offer Documents

As a result of the amendments to the Privacy Act 1988 made by the Privacy Amendment (Enhancing Privacy Protection) Act 2012 which will come into effect on 12 March 2014, some key changes have been made to the Privacy Policy of the Responsible Entity.

A copy of the updated Privacy Policy for the Responsible Entity is located at

 

http://www.perpetual.com.au/privacy-policy.aspx.