Long-Short Opportunities Strategy
Targets daily liquidity returns in excess of the RBA cash rate plus 8% pa net of fees
Coolabah Long Short Opportunities Fund (LSOP)
RBA Cash Plus 8.0% PA Strategy
Overview
The Coolabah Long-Short Opportunities Fund (LSOP) harnesses CCI’s extensive management team to actively exploit mispricings in global cash, bond and bank equity markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 8% pa after all fees with an average A credit rating and near-zero interest rate duration risk.
LSOP is a daily liquidity solution that invests in cash, fixed-income securities and listed equity providing investors with exposure to the full capital structure of Australian and overseas banking groups. All fixed-rate assets are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk.
LSOP is typically placed in the “unconstrained fixed-income”, “high yield”, or “defensive alternative” universes.
LSOP is an absolute return fixed-income strategy focused on exploiting typically long and, more opportunistically, short mispricings in credit and bank equity markets. It targets volatility of less than ASX All Ordinaries Index over 3 year periods.
LSOP aims to generate alpha from relatively low-risk and liquid investments identified through the portfolio managers’ proven active asset-selection process. LSOP also targets reliably distributing strong quarterly income.
The ability to go long or short, either directly or through using derivatives, means LSOP can profit from bond price rises and price falls. Going long or short can also result in LSOP being leveraged.
Investments
LSOP actively invests in a portfolio of Australian cash securities, bonds, and hybrids. It can also invest in listed common equity issued by Australian and overseas banking groups. LSOP does not invest in fixed-rate bonds (unless interest rate risk is hedged out). LSOP is permitted to use leverage to enhance alpha (or capital gains).
Applying a diverse array of quantitative asset pricing techniques, LSOP’s portfolio managers add-value through very actively exploiting mispricings that seek to generate capital gains over and above the yield provided by the underlying fixed-income assets.
Risks
The Fund is not a bank deposit.
It is a managed investment scheme registered and regulated by the Australian Securities and Investments Commission (ASIC).
All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. The Fund can take long and short positions, borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses.
To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS and to the Fund’s Target Market Determination (TMD)^.
Ratings
Qualitative
The Coolabah Long-Short Opportunities Fund (LSOP) harnesses CCI’s extensive management team to actively exploit mispricings in global cash, bond and bank equity markets to generate daily liquidity returns that exceed a target of the RBA cash rate plus 8% pa after all fees with an average A credit rating and near-zero interest rate duration risk.
LSOP is a daily liquidity solution that invests in cash, fixed-income securities and listed equity providing investors with exposure to the full capital structure of Australian and overseas banking groups. All fixed-rate assets are hedged to a floating-rate (ie, not fixed-rate) exposure that means it has near-zero interest rate (duration) risk.
LSOP is typically placed in the “unconstrained fixed-income”, “high yield”, or “defensive alternative” universes.
LSOP is an absolute return fixed-income strategy focused on exploiting typically long and, more opportunistically, short mispricings in credit and bank equity markets. It targets volatility of less than ASX All Ordinaries Index over 3 year periods.
LSOP aims to generate alpha from relatively low-risk and liquid investments identified through the portfolio managers’ proven active asset-selection process. LSOP also targets reliably distributing strong quarterly income.
The ability to go long or short, either directly or through using derivatives, means LSOP can profit from bond price rises and price falls. Going long or short can also result in LSOP being leveraged.
LSOP actively invests in a portfolio of Australian cash securities, bonds, and hybrids. It can also invest in listed common equity issued by Australian and overseas banking groups. LSOP does not invest in fixed-rate bonds (unless interest rate risk is hedged out). LSOP is permitted to use leverage to enhance alpha (or capital gains).
Applying a diverse array of quantitative asset pricing techniques, LSOP’s portfolio managers add-value through very actively exploiting mispricings that seek to generate capital gains over and above the yield provided by the underlying fixed-income assets.
The Fund is not a bank deposit.
It is a managed investment scheme registered and regulated by the Australian Securities and Investments Commission (ASIC).
All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. The Fund can take long and short positions, borrow and use derivatives, meaning the Fund is geared (or leveraged). Leverage can amplify gains and also amplify losses.
To understand the Fund’s risks better, please refer to the detailed “Risks” section in the PDS and to the Fund’s Target Market Determination (TMD)^.
Key Facts
| Name | Coolabah Long-Short Opportunities Fund |
|---|---|
| ARSN | 656 965 481 |
| Investment Objective | Targets returns in excess of the RBA cash rate plus 8.0% pa after fees, over rolling 3 years periods. |
| Inception Date | 1-May-20 |
| Applications | Daily |
| Withdrawals | Daily (T+3) |
| Distribution Frequency | Quarterly |
| Issuer & Responsible Entity | Equity Trustees |
| Investment Manager | Coolabah Capital Investments (Retail) |
| Fund Administrator | Apex Fund Services |
| Registry | Apex Fund Services |
| Custodian | Apex Fund Services |
| Auditor | Ernst & Young |
Pricing Information
| Class | Institutional Class A |
| APIR Code | ETL9059AU |
| ISIN | AU60ETL90593 |
| Tradable | Directly with the Responsible Entity |
| mFund | No |
| Management Costs | 1.00% p.a. |
| Performance Fee (%) | 20.5% of excess fund performance over the Benchmark subject to a high water mark |
| Benchmark | RBA cash rate plus Management Costs |
| Minimum Investment | $1,000 |
| Additional Investment | $1,000 |
| Minimum Balance | $1,000 |
| Saving Plan | Monthly |
| Savings Plan Minimum | $100 |
| Buy Spread | 0.00% |
| Sell Spread* | 0.05% |
Distributions
Distribution Per Unit ($)
| Quarter Ending | Assisted Investor Class | Institutional Class |
|---|---|---|
| APIR Code | ETL6881AU | ETL9059AU |
| 31-Mar-24 | 0.018 | 0.018 |
| 31-Dec-23 | 0.016 | 0.016 |
| 30-Sep-23 | 0.016 | 0.016 |
| 30-Jun-23 | 0.018 | 0.018 |
| 31-Mar-23 | 0.0115 | 0.0115 |
| 30-Dec-22 | 0.0096 | 0.0096 |
| 30-Sep-22 | 0.007 | 0.007 |
| 30-Jun-22 | 0.005 | 0.005 |
Resources
Research Reports
Frequently Asked Questions
Complete a withdrawal request form and submit it to the responsible entity (RE). Further instructions are on the form.
^From 5 October 2021, a Target Market Determination (TMD) is required to be made available under the Design & Distribution Obligations. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.
*The Buy Sell Spread may change depending on the transaction costs associated with buying and selling the assets within the Fund’s portfolio at that time. Any changes to the spreads after the date of the PDS will be published here.
Disclaimer: Past performance does not assure future returns. Returns are shown after all fund fees, unless otherwise stated. Retail product fees can vary depending on the unit class selected and/or whether the financial advisory firm has negotiated access to lower cost unit classes.
Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975, is the responsible entity for the Smarter Money Fund (SMF), the Smarter Money Higher Income Fund (SMHI), Smarter Money Long-Short Credit Fund (LSCF), Coolabah Long-Short Opportunities Fund (LSOP), the Coolabah Floating-Rate High Yield Fund (Managed Fund) (YLD) and the Coolabah Active Composite Bond Fund (Hedge Fund) (Ticker: FIXD). Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This has been prepared by Coolabah Capital Investments (Retail) Pty Ltd ACN 153 555 867 (Coolabah), an authorised representative (#000414337) of Coolabah Capital Institutional Investments Pty Ltd ABN 85 605 806 059 AFSL 482238, to provide you with general information only. In preparing this publication, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. The Product Disclosure Statement (PDS) for the Fund should be considered before deciding whether to acquire or hold units in it. A PDS for the Fund can be obtained by visiting www.coolabahcapital.com. Neither Coolabah, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. The Fund is subject to investment risks, which could include delays in repayment and/or loss of income and capital invested.
Ratings & Research Disclaimers
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned SLT3458AU June 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
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