Q&A

Summary Details of the Fund

To be read in conjunction with the full Information Memorandum

What is the objective of the Fund?

The objective of the Fund is to generate high risk adjusted returns on invested moneys, denominated in USD. The returns will generally be income in nature and all distributions will be reinvested in the Fund until further notice.

What are the significant benefits of investing in the Fund?

The main benefits include (but are not limited to):

  • The investment is denominated in USD which may give a diversification benefit to Australian investors.
  • The distributions will be denominated in USD which may give a diversification benefit to Australian investors.
  • The Fund’s universe of potential investments is a wide range of ETFs giving access to a very broad set of investment opportunities.
  • The Fund’s universe of potential investments comprises highly liquid securities, which means that the Fund’s investment assets may be liquidated at relatively short notice for redemptions.
  • The aim of the Fund is to generate higher returns on a risk adjusted basis, denominated in USD.

What are some of the significant risks of investing in the Fund?

The main risks include (but not limited to):

  • The Adaptive Asset Allocation™ process might not perform as expected, adversely affecting your return on investment in the Fund.
  • The assets of the Fund are held in USD, the Units are denominated in USD and distributions and redemption proceeds will be paid in USD (and not converted to AUD or other currencies), which may create an exchange rate risk for investors benchmarking their performance in a currency other than USD.

Who will manage the Fund?

The Trustee has appointed Specialist Investment Management Pty Limited ABN 55 148 920 138, AFSL 411324 to manage the Fund.

What asset classes will the Fund invest in?

The Fund’s universe of potential investments is a broad range of US exchange-traded ETFs having a market capitalisation in excess of USD400 million.

Cash-equivalent holdings may also be held in a bank account or other deposit or term product (Liquidity Balance) to manage subscriptions, redemptions and expenses.

If you wish to redeem your Units, the redemption proceeds will be the Unit Price for them at the time of redemption.

How do I withdraw from the Fund?

You can withdraw your investment in the Fund by redeeming your Units. Redemptions can be made on a Quarterly basis until further notice.

How liquid is the investment?

This investment is expected to be highly liquid due to the investment assets of the Fund being ETFs on US exchanges. This supports the capacity for regularly available redemptions. Although redemption of Units may be suspended or may be required by the Trustee, this is unlikely to occur in the ordinary course of the Fund’s operations.

While registration of transfers of Units may be refused by the Trustee, the Trustee currently has no policy for refusing transfers other than to the extent appropriate to comply with regulatory requirements, such as AML/CTF obligations and policies.

What happens to my investment money?

Moneys paid by investors to acquire Units will be held in the client moneys trust account until the money is either refunded to the unsuccessful applicant or, to the extent the applicant is successful, it is withdrawn as payment for the Units and then applied to the investments made for the Trustee. The Trustee will pay the withdrawn moneys to Interactive Brokers for subsequent investment. Any surplus will be retained there for use in managing the investments until needed to pay for distributions or redemptions.

What if I live overseas?

Distributing this Information Memorandum outside the Commonwealth of Australia may be restricted by law, and anyone receiving this Information Memorandum should seek advice on and observe such restrictions. Failure to comply with such restrictions may constitute a violation of applicable securities laws.

This Information Memorandum does not constitute an offer anywhere, or to anyone to whom, it would not be lawful to make such an offer. This Information Memorandum may not be supplied to persons outside the Commonwealth of Australia where any registration, qualification or other requirement exists with respect to any public offering of securities.

The payment of distributions to persons who are resident outside of Australia may be subject to Australian taxation laws requiring withholding for tax, especially if no TFN or exemption is provided by the Unit Holder. The Trustee may be required to report to the Australian Taxation Office certain details of investments held by investors who are subject to US tax laws.

How will I be informed about the performance of the Fund?

The Manager will provide investor reports for:

  • the Quarterly unaudited net asset value and Fund valuation statements including Unit Prices and a brief commentary within 30 business days of the end of each Quarter;
  • monthly unaudited and indicative net asset value updates within 15 Business Days at the end of each Month on request;
  • audited annual financial statements within 90 days of year-end; and
  •  investor holding statements within 90 days of year-end.

Any indicative value updates might not fully reflect all expenses expected but not yet incurred, and all expected income due to the timing of implementation of the strategy, so these indicative values might understate or overstate the value compared with the Quarterly and annual Unit Prices.

The audit of the annual financial statements will be in accordance with industry standards for comparable wholesale funds.

The Manager may convene a meeting for investors each year at an appropriate time to review the Fund.