Managed Funds

Intro

What is a wholesale managed Fund?

A wholesale managed fund is a 'managed investment scheme’ where your money is pooled together with other investors by an investment manager  (Fund Manager) who then buys and sells a diverse array of different investment assets on your behalf. This is ideal for investors who don't have time or knowledge to watch the stock market every day of the week.

Do You Qualify to enter into a Wholesale Fund?

Individuals - If you are applying as an individual you must qualify by law as a wholesale investor to participate in any type of Wholesale Managed Fund.

A statement of advice (SOA) or Risk Assessment profile will be conducted on all Premium Share Price Members to see if you qualify to enter into wholesale managed fund.

In order to qualify for a wholesale fund you may also be asked to provide us with an authorisation letter from your accountant, if this is the case you will be provided with a letter for your  accountant to sign confirming you do meet all the required criteria needed for you to qualify to enter into a wholesale investment fund.

You may also need to demonstrate you fit into one of the following criteria or you may satisfy the wholesale definition by other means.

These Criteria's are:

  • Income Qualification Criteria - You have a gross income for each of the last 2 financial years of at least $250,000
  • Net Assets Qualification Criteria - You have net assets of at least $2,500,000

 

SMSF, COMPANIES or TRUSTS - If you are applying on behalf of a Self Managed Superannuation Fund (SMSF COMPANY OR TRUST must qualify by have monies equal to or exceeding $500,000 AUD to enter into a wholesale fund however you are not required to invest that amount.

Investments may only be accepted from persons that qualify as wholesale clients under section 761G (7) of the Corporations Act and hence persons to whom the Manager is not required to give a Product Disclosure Statement under Part 7.9 of the Corporations Act.

The following information is not an invitation to subscribe for Units in any place in which, or to any person to whom, it would not be lawful to make such an invitation.

The distribution of this information in jurisdictions outside Australia may be restricted by law.
This information may only be distributed or released to a person that is not in the United States.


Fund Performance

This is the current performance of the JB High Alpha wholesale Fund since the funds inception.

This chart is shown to demonstrate the difference in performance returns of the Fund vs the ASX 200

Managed Funds

Chart last updated 4th of July 2018


Key Features

Managed Funds

Key Feature Description

Name and type of Fund

JB High Alpha Fund - an open-ended Investment Unit Trust that is an unregistered managed investment scheme.

Fund Domicile

Australia

Trustee and Manager

JB Markets Pty Ltd ACN 123 876 291 (AFSL 323182)

Broker/Execution and Clearing

Broker and Clearing Services will be provided by JB Markets Pty Ltd and such other broker engaged by the Trustee from time to time.

Fund Administration

JB Markets Pty Ltd or such other party engaged by the Trustee from time to time.

Investment Manager

John Bridgeman Limited ACN 603 477 185, an authorised representative of JB Markets Pty Ltd (Representative  No. 001008380).

Portfolio Manager

Stuart McAuliffe

Minimum Investment

Minimum investment will be AUD 50,000 with additional investment in increments of AUD 10,000.

Issue Price

Up to and including the Final Allotment Date, a Unit will be issued at an Issue Price of AUD 1.00 per Unit. After the Final Allotment Date, and subject to the Trust Deed, a Unit will be issued at an Issue Price calculated as:

Net Asset Value + Transaction Costs
-----------------------------------------------------
Number of Units on issue

Investment Strategy

The Investment Manager will seek to provide investors  with capital growth over the medium term. The Fund  will invest in a range of financial products that focus on Global Macroeconomics and, in holding both long and  short positions, will seek absolute returns regardless of  market direction.

Investment Products

The Fund may invest in a wide range of financial products.  However, it is anticipated that the Fund will predominantly invest and trade in global futures markets worldwide, across categories such as share indices, interest rates, currencies and commodities. The Fund will invest in exchange-traded futures contracts, listed equities and cash. Typically, these indices will be broad-based and liquid developed market equity indices including the Dow Jones Industrials, S&P 500, FTSE 100, Nikkei 225, DAX, Hang Seng and the S&P ASX 200. The Fund will also take positions in the direction of global Government Bond markets and commodities such as gold or oil. Currency exposure (or hedging) will be attained by holding a mix of cash  balances in various currencies, such as Australian Dollar, Euro, US Dollar, Canadian Dollar, Japanese Yen and  British Pound and/or through the trading of currency futures market contracts.

Leverage

Unless otherwise disclosed, the Fund may be leveraged  to the extent it will not breach levels greater than five times the invested funds under management at the time  of investment.

Distributions

Distributions of any income or realised profits generated  will be automatically reinvested in additional Units at  the prevailing Issue Price (without adjustment for the  buy/sell spread), unless the investor elects to receive  cash distributions.

Redemption of Unit

Redemptions will normally be paid within 30 days of a redemption request.  The Manager reserves the right to decline any redemption request.

Management Fee

A management fee will be charged monthly in arrears. The fee will be calculated based on the Fund’s net asset value (NAV) at the end of each month, payable in Australian dollars, and will apply at an annual rate of 2.0%.

Performance fee

23% of the increase in the Fund’s net asset value (NAV).  Before any performance fee becomes payable, the Fund’s NAV must be above any previous high-watermark – calculated by reference to the NAV at the relevant quarterend reporting points.

Buy/ Sell Spread

+ 0.15% on applications - 0.15% on redemptions Nil on issue of units from reinvestment of distributions.

Investment Highlights

The Fund allows investors to diversity their exposure across global markets and products and to generate potentially positive returns regardless of the general market trend. There are no capital raising fees; all invested funds will be working for you from day one.

 


Investment Strategy

The Fund will predominantly invest and trade in global futures markets worldwide, across categories such as share indices, interest rates, currencies and commodities. The Fund will invest in exchange traded futures contracts, listed equities and cash.

Typically, these indices will be broad-based, and liquid developed market equity indices including the Dow Jones Industrials, S&P 500, FTSE 100, Nikkei 225, DAX, Hang Seng and the S&P ASX 200. The Fund will also take positions in the direction of global Government Bond markets and commodities such as gold or oil. Currency exposure (or hedging) will be attained by holding a mix of cash balances in various currencies, such as Australian Dollar, Euro, US Dollar, Canadian Dollar, Japanese Yen and British Pound and/or through the trading of currency futures and options  market contracts.  The Investment Manager will seek to provide investors with capital growth over the medium  term.  The Fund will invest in a range of financial products that focus on Global Macroeconomics and, in holding both long and short positions, will seek absolute returns regardless of  market direction. The Investment Manager’s advantage lies in correct assessment of broad valuation measures, macroeconomic environment, sentiment and economic forecasting.  The strategy aims to identify medium and long-term trends and trend shifts, but to also vary position size given short-term technical indicators including sentiment and momentum. The strategy targets positive results over 12 month rolling periods.

The Trustee will give Unit Holders written notice of any significant change to the investment strategy. 

A summary of the investment strategy is as follows:

  • The strategy is to produce trading profits from identification of stock market direction;
  • The Fund will focus on major developed world stock market indices;
  • The Fund will predominantly invest in  index futures;
  • The Fund is directional, with periods of high volatility and rapid price movements the most significant risk;
  • The Fund primarily uses fundamental analysis to evaluate price; and
  • The Fund primarily uses technical analysis  to identify trend, momentum and other market conditions.

 


Traded Products

Index Futures are leveraged products that allow the investor to take a view on the direction of the underlying index.  Index Futures are mainly utilised by institutions to protect portfolios from short-term movements; to gain a cost effective exposure to an index whilst purchasing underlying shares; or to take a trading view on market direction. The current strategy of the Fund is to focus primarily on index futures contracts providing exposure to major equity indices.  The Dow Jones Industrials, S&P 500, FTSE 100, Nikkei 225, DAX, Hang Seng and the S&P ASX 200 are the primary instruments to express global directional moves.  The indices mentioned are benchmarks for developed stock markets of the United States, United Kingdom, Japan, Germany, Hong Kong and Australia.  They are all heavily regulated derivative instruments, deeply liquid with tight spreads and almost  24-hour coverage. The Fund may also invest in listed equities  in finance, foreign exchange, or various  other industries.


Risks

All investments are subject to risk. While there are many factors that may impact on the performance of any investment, the summary below details some of the major risks that you should be aware of when investing in the Fund.

Individually, or in combination, these risk factors may affect the Fund and the ability to repay capital and income distributions. There is no guarantee that the Fund will achieve any particular return. An investment in the Fund should be considered in light of these risks. When considering investing in this Fund it is important to understand that:

  • The value of your investment will go up  and down
  • Returns are not guaranteed
  • You may lose some or all of your money
  • Previous returns don’t predict  future performance

The appropriate level of risk for you will depend on your age, investment time frame, where other parts of your wealth are invested and how comfortable you are with the possibility of losing some or all of your invested funds.
Before deciding to invest in the Fund you should read the entire IM attached in this presentation, consider these factors and review how these risk factors impact your personal circumstances. Note that the Manager does not guarantee the repayment of capital or any particular rate of return. You should also seek professional advice from your lawyer, accountant or other professional adviser before deciding whether to invest. While it is not possible to identify every risk factor relevant to investing in the Fund, we have outlined some of the significant risks in this section.

 

 

TYPES OF RISKS DESCRIPTION
Market Risk The Fund will encompass exposure to major indices such as the Dow Jones Industrials, S&P 500, NASDAQ 100, Nikkei 225, FTSE 100, DAX, Hang Seng and the S&P/ASX 200. Index Futures Contracts are leveraged products that allow the Investment Manager to take a view on the direction of the underlying index to which the contract relates. As the market value of these indices changes, gains or losses can occur and these gains or losses can be magnified due to the leverage associated with these products. Factors that drive changes in the value of these financial products are many and may include changing profitability of companies that make up the various indices, economic cycles, investor demand levels, business confidence and government and central bank policies.
Investment Manager Risk There is a risk that the Investment Manager’s investment strategy may not be successful resulting in underperformance in the Fund, either in absolute terms, or relative to the market and/or its peers. Furthermore, there is a risk that the Investment Manager fails to implement the Investment Strategy successfully. In either circumstance, this may result in a loss of a significant portion of your investment in the Fund
Income Risk It is not the intention of the Fund to distribute income to investors by means of regular distributions. This is not a fixed income product. However, the ability of the Fund to generate internal income is dependent on the performance of the Fund’s assets and the broader market environment. There is no guarantee that you will receive any income or a return on Investment. If during a financial year, the Fund were to pay out a distribution of net income which exceeds the total net taxable income for the particular financial year, the excess you receive may be treated as a return of capital rather than income and may result in tax implications for you.

Capital Risk

An investment in the Fund is not a guaranteed capital investment. As such, your investment in the Fund may decrease in value, meaning you may get back less than you invested in the Fund if you withdraw your investment or the Fund is wound up.

Currency Risk

The Fund is denominated in Australian dollars.  As a result, investors whose initial investment in the Fund is via currencies other than the Australian dollar are exposed to favourable and unfavorable movements in their currency in relation to the Australian dollar.  Such movement in currency means that the absolute return of the Fund in the investor’s currency of initial investment may differ to that of the performance of the Fund. Due to the Fund taking positions in various global markets, the absolute performance of each investment made by the Fund will be affected by movements in exchange rates in relation to the Fund’s denominated currency, the Australian dollar.  As a result, the outcome of trades in other currencies such as the  Euro or Sterling will be impacted by any subsequent conversion of the profit or loss  to the Australian dollar.

Derivative Risk

The value of derivative investments is linked to the value of an underlying asset (or an interest rate, share index or some other reference point) and can be highly volatile. While derivatives offer the opportunity for higher gains for a smaller initial cash outlay, they can also result in significant losses, sometimes significantly in excess of the amount invested to obtain the derivative. Risks associated with using derivatives might include the values of the derivative failing to move in line with the

underlying asset, potential illiquidity of, or inability to get set in, the derivative, the Fund not being able to meet payment obligations as they arise, and counterparty risk (this is where the counterparty to the derivative contract cannot meet its obligations under the contract). Using derivatives may not provide the desired returns or protection from loss, and may increase losses. The Investment Manager aims to keep derivative risk to a minimum by constantly monitoring the Fund’s use of derivatives, and by only entering into derivative contracts with reputable counterparties.

Counterparty Risk

The Fund may make investments through derivatives that require the entry of contracts with third parties. A counterparty to one of those contracts may fail to perform their contractual obligations, either in whole or in part. This risk is primarily managed by ensuring counterparties are approved with stringent criteria and ensuring, where possible, transactions are undertaken with a number of counterparties. However, the level of risk faced by the Fund in this regard is higher relative to funds that do not invest in this way.

Liquidity Risk

Liquidity Risk

The Fund should be considered as an illiquid, passive, long-term investment. This is because:

  • although a Unit Holder’s Units in the Fund are transferable subject to conditions, there is no established market for these Units; and
  • upon request to withdraw from the Fund, it may normally take the Manager up to 30 days to process the withdrawal, and the Manager may refuse to accept a request for withdrawal at its sole discretion.

Fund Risks

Risks particular to the Fund include that it could terminate, the fees and expenses could change (as described in Section 5), the Investment Manager could be replaced as investment manager and the Investment Manager’s investment professionals (including the Portfolio Manager) could change.  There is also a risk that investing in the Fund may give different results than investing directly in the underlying securities because of income, capital gains or losses accrued in the Fund and the consequences of investments and redemptions by other investors.

Regulatory Risks

Changes in regulations (including Australian Income Tax legislation changes) may have  an impact on returns from the Fund. Unit Holders are advised to form their own view  on the likelihood and impact of any  regulatory change.

 


Fees And Expenses

This area shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Fund assets as a whole.  All fees and costs described in this presentation are expressed exclusive of GST, unless otherwise stated.  Taxes are set out in another part of this document.  You should read all the information about fees and costs because it is important to understand their impact on your investment.

Management Fee

The Investment Manager is entitled to a Management Fee.  The Management Fee is an expense which the Trustee is entitled to pay or be reimbursed for out of the assets of the Fund in accordance with the Trust Deed for the Fund. The total fee payable will be calculated based on the net asset value of the Fund (Portfolio Value) at the end of each month, in Australian dollars, and will apply at an annual rate of 2.0%. The Portfolio Value will be the daily weighted average of net funds under management of the Fund over the month for which the fee is to be calculated.  The Management Fee is to be paid monthly in arrears.

Performance Fee

The Investment Manager is entitled to a Performance Fee to be paid quarterly in arrears, calculated on the last day of March, June, September and December.  The Performance Fee is also an expense which the Trustee is entitled to pay or be reimbursed for out of the assets of the Fund in accordance with the Trust Deed for the Fund. The performance fee will be calculated in accordance with the following formula: PF = 0.23 x PFRA where:

PF is the performance fee for the relevant quarter;

PFRA is the performance fee reference amount for the relevant quarter calculated in accordance with the following formula:
[(AR + CV) - (PV - AWA + AAM) - C];

where:

  • Underperformance in a quarter occurs where, and to the extent that, (PV – AWA + AAM) is greater than (AR + CV) and the aggregate underperformance is the sum of the underperformance that has occurred in previous quarters; and
  • Underperformance is recovered where, and to the extent that, (AR + CV) is greater than (PV - AWA + AAM) in a quarter after an aggregate underperformance has accrued,  which, for the avoidance of doubt, is zero if there has not been any underperformance or if all the underperformance that has occurred has been recovered, provided that PF is deemed to be zero for any quarter where PF as calculated in accordance with the above formula is a negative amount.

 

Worked example, assuming:

  1. On 30 June 2017, the net asset value of the Fund was $10,000,000;
  2. during the quarter ending 30 September 2017:
    • (i)  the Fund accepted applications to subscribe for $20,000 worth of Units; and
    • the Fund accepted applications to withdraw $10,000 worth of Units;
  3. on 30 September 2017, the sum of the net asset value of the Fund and the net income of the Fund earned during that quarter was $10,110,000; and
  4. there was no aggregate underperformance of the Trust prior to that quarter.
    The Performance Fee for the quarter ending 30 September 2017 is:
    0.23 x [(10,110,000) – (10,000,000 – 10,000 + 20,000) – 0] = $23,000

This example is indicative only and the Performance Fee to be paid in the future is not known. These are estimated figures provided to assist you to understand how the Performance Fee is calculated and paid. They are not forecasts or representations in relation to the net value of the Fund’s assets or the net income of the Fund.

Please see the IM presentation bellow for all other fees and transaction cost details.


IM Presentation

Click on the button below to view the Information Memorandum 

Managed Funds

 


Online Application

Click here to start the Online Application

Managed Funds


Paper Application

Click here to start the Online Application

Managed Funds


Overview

Click here to read a pdf overview of the Funds commonly asked questions / fact finder

Managed FundsManaged Funds

 


Fact Sheet

Click here to start the Online Application

Managed FundsManaged Funds

 


Frequently Asked Questions

Question Answer

What is the Fund’s strategy?

The Fund runs a global macro strategy whereby it identifies investment opportunities through fundamental analysis, existing trends, prevailing conditions and the action of policy makers, analysis of international money flow and portfolio allocation. 

A global macro investment strategy utilises fundamental information and economic theory on key inputs including economic growth, inflation, interest rates, currency movements, global imbalances and changes in commodity prices to formulate forecasts and trends for different investment markets. 

For more information please refer to section 2 of the Information Memorandum.

What does the Fund invest in?

The Fund will encompass exposure to major indices such as the Dow Jones Industrials, S&P 500, NASDAQ 100, Nikkei 225, FTSE 100, DAX, Hang Seng and the S&P/ASX 200.

Index Futures Contracts are leveraged products that allow the Investment Manager to take a view on the direction of the underlying index to which the contract relates.

The Manager believes that an effective investment strategy requires a global approach because markets are interdependent with the actions of investors, central bankers, consumers and policy makers in one market having flow on effects, actions and reactions across many markets.

For more information please refer to section 2 of the Information Memorandum.

What is the fund currently invested in?

The investments within the portfolio can vary within a short amount of time due to the high turnover of the fund. The Fund is invested by Portfolio Manager within accordance to the mandate.

What are the benefits of the fund?

The fund gives investors exposure to global markets, diversification through multiple asset classes such as bonds, commodities, share indices and currencies. The fund also provides investors with uncorrelated returns to traditional asset classes with potential for positive returns in rising and falling markets.

For more information please refer to section 2 of the Information Memorandum.

Who is the Investment Manager?

The Fund has appointed John Bridgeman Limited to manage the Portfolio in accordance with the terms and conditions of the Management Services Agreement. 

The Manager and its investment team have considerable experience in investment management across different geographies, sectors and industries. The Manager operates a specialist investment management business, and is listed on the National Stock Exchange of Australia under the ticker “JBL”.

For more information please refer to section 6 of the Information Memorandum.

Who is the Portfolio Manager

Stuart McAuliffe, Managing Director and Chief Investment Officer of John Bridgeman Limited, has primary responsibility for the investment decisions of the Investment Manager. He is supported by a team of investment professionals who have skills and expertise across Australian and global markets.

 

Stuart has over 25 years’ experience investing in global equity, bond, currency and commodity markets. He has pioneered innovative research into the correlation and causation between different global equity and currency markets over short, medium and long-term time periods. 

As the senior executive responsible for investments, he uses a ‘layered’ approach combining multiple time frame fundamental analysis with short term technical trading patterns to maximise returns while managing risk.

For more information please refer to section 6 of the Information Memorandum.

How has the fund performed?

There is a monthly factsheet on the JB Markets website which highlights the performance of the Fund  you can access all the latest information by visiting www.jbmarkets.com/ managed-funds

What is the Fund’s yield?

The Fund does not intend to pay a distribution as outlined in the Information Memorandum..

What are the risks?

There are various risks. Investors should consider the Information Memorandum in its entirety including the risks outlined in section 3 of the Information Memorandum.

 


How To Apply

How to apply to invest in the fund

Applications to invest in the Fund must be for a minimum investment of AUD 50,000. Applications for more than AUD 50,000 must be in multiples of AUD 10,000. 

When an Application is accepted, the Applicant will be issued Units at the Issue Price at the date the Application is accepted.

The Manager reserves the right to partially accept any application to invest in the Fund. Applications can be made by completing the Application Form below.


Disclaimer

Important Information: You must qualify to participate in any type of Managed Fund.

A statement of advice (SOA) or Risk Assessment profile will be conducted on all Premium Share Price Members to see if you qualify to enter into a retail or wholesale managed fund.

All financial products displayed in this presentation are provided to you on the grounds that you accept that each product that is displayed maybe provided to you via a directly affiliated company that works directly with Share Prices Australia Pty Ltd (ABN: 92 105 855 892) - Australian Financial Services Licence (“AFSL”) number 287367, trading as Share Prices.

Our affiliated companies include: 

For the purpose of Fund Management Services, these services will be provided by Share Prices Pty Ltd (ABN: 79 131 846 234) which is a corporate Authorised Representative (AR Number: 1263286) of JB Markets Pty Ltd (AFSL 323182). Share Prices Pty Ltd is also an Authorised Representative of Share Prices Australia Pty Ltd.

For the purpose of Information Services, customer support and account opening related services, these services will be provided by Share Prices Pty Ltd (ABN: 79 131 846 234) which is a corporate Authorised Representative (AR Number: 1263286) of JB Markets Pty Ltd (AFSL 323182). Share Prices Pty Ltd is also an Authorised Representative of Share Prices Australia Pty Ltd.

Trading financial products, including foreign exchange contracts, futures and CFDs on margin, carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.

Before deciding to invest in foreign exchange contracts, futures or CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange contracts, futures and CFD trading, and seek advice from an independent financial advisor if you have any doubts. Any advice provided is general advice only.

Any advice provided is general advice only. It is important to note that: 

  • The advice has been prepared without taking into your objectives, financial situation or needs. 
  • You should therefore consider the appropriateness of the advice, in light of your own objectives, financial situation or needs, before following the advice. 
  • If the advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of, and consider, the PDS for that product before making any decision.

The international markets examples are based on each country’s primary stock index for the nominated time periods displayed. 
Trading may carry a high level of risk that may not be suitable for all investors and past trading performance is not a reliable indicator of future trading performance and there is no guarantee that the performance of our analysts or trading teams in the future will be consistent with the performance in this presentation if any.


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