OLI AUSTRALIAN EQUITY FUND
The Fund is an unregistered managed investment scheme structured as a unit trust. It is open only for subscription by eligible investors (these are Australian-tax-resident wholesale clients ONLY).
Fund Portfolio Composition
The capital of the Oli Australian Equity Fund comprises direct and indirect investment in a diversified portfolio of equity securities (shares) in selected ASX-listed Australian corporates and Exchange Traded Funds (ETFs), together with cash and cash-equivalents. Within these broad parameters, the approximate composition of the Fund will be:
ASX listed securities and ETFs;
Contracts for Difference (CFDs);
Cash and Cash Equivalents;
The above ranges are indicative only. The Oli Australian Equity Fund may be rebalanced within a reasonable period of time should its exposure move outside the above ranges. At any given time, the Trustee expects direct and indirect investment in a mix of between 10 and 50 ASX-listed shares in Australian corporates and ETFs.
The overriding investment objective is overall growth for a gross (before tax) return on investment above the Performance Benchmark of 8% per annum. Achievement of the investment objective is measured after deduction of management fees, expenses and any taxation for which the Fund (as distinct from Unitholders) may be liable.
The investment objective is not intended to be a forecast – merely an indication of what the investment strategy aims to achieve over the medium to long term, assuming financial markets remain relatively stable over time. The Fund may or may not achieve its investment objectives. Capital growth and distributable income are not guaranteed.
The Trustee of the Fund, Suanni Capital Pty Ltd, manages the Fund with the assistance from the Investment Manager. This includes developing and implementing strategic decisions and directions for the Fund and taking tactical (day-to-day) investment (buy-sell-hold) decisions.
The Trustee requires the Investment Manager to establish an Investment Committee through which all advice to the Trustee will be channeled. The Trustee has a right to be represented on the Investment Committee but is not so required. The Trustee shall not be required to accept a decision or advice of the Investment Committee (even if represented thereupon). The Trustee may give a binding direction to the Investment Manager in respect of any matter or thing affecting or otherwise referrable to the Fund.
The Investment Committee has three members each of whom is drawn from the resources of the Investment Manager. They are the:
Generally, the Trustee requires that all advice given by the Investment Manager concerning investment strategy and/or operational decisions affecting the Fund must be considered and agreed by the Investment Committee. This requirement does not imply that the Investment Committee must meet and agree upon each and every buy/sell decision. It is open to the Investment Committee to establish “game-plans”, thresholds and timetables for the acquisition and disposal of assets in the Fund. An example here may be a standing arrangement allowing for short-term trades that are time- sensitive based upon the instantaneous condition of the market in order to obtain short-term returns or to limit damage to the Fund from unanticipated adverse market activity.
This is a process undertaken by the Investment Manager to generate investment ideas and source investment opportunities through research, analysis, and its existing network.
Analysis and Valuation
All selected investment opportunities will be subject to a full analysis and valuation assessment that cover financial assessment, market assessment, risk assessment, potential growth assessment, valuation assessment and catalyst assessment. During this process, the Investment Manager will collect and verify information through various resources, including industry reports and experts’ opinions.
If after the completion of the analysis and valuation process, the Investment Manager will devise trading strategies for a selected opportunity as well as any balancing actions required for the entire portfolio. For example, the Investment Manager will make buy, sell, or hold decisions.
How to Invest
An eligible investor may invest in the Fund directly or through an investment vehicle including a company, a trust, SMSF, a joint venture, a managed investment scheme or a partnership. The prospective investor is recommended to first obtain independent professional advice (including tax advice) on any structure having regard to individual circumstances of the investor, appetite for risk and investment objectives.
All applications for allocation of units in the Fund must be made on the application form forming a part of this IM or updated by the Trustee. Please ensure you have obtained the most recent version of this IM from the Trustee and read it careful from beginning to end.
Funds in the full amount of an application for investment must be deposited with the Custodian at the same time as the application is lodged. An Application will not be considered unless and until the full amount of the proposed investment is received by the Custodian.
For applications made during the Wealth Accumulation Period the Trustee will inform the applicant of the unit price and transaction costs and the amount required to be deposited after assessing the application. No units will be issued in respect of such application unless and until the full amount required to be paid is received into the hands of the Trustee.
The acquisition cost of units during the WAP is: (Number of units applied for x Current Unit Market Price) + buy/sell spread
Example: the acquisition price payable in connection with an application for 200,000 units at a market price of $2 is $400,000 + (0.3% x $400,000) on buy/sell spread cost = $401,200