Managed Wholesale Funds

Fund Performance


Performance Results


Investment Products


Unit Price


What is a Unit Price

What is a Fund Unit Price?

When you invest into a managed fund, the investment amount that you deposit into that fund is placed into an investment pool with other investors money for your investment manager to trade.

By investing your money, you then own an agreed percentage of that pool of money (the Fund).

To determine what percentage of the fund you own, the total value of the funds under management is calculated and then the amount of money that you deposited into the fund is broken up into shares of the fund which is also more commonly known as units of the fund.

Hypothetical Example:
If the fund value was $700,000 and you invested $300,000 = the total value of the fund would then be $1,000,000
You would own 30% of the fund aka 30% of the Shares (units)

The unit price represents how much each unit or "share" of a fund is worth.

How Is The Daily Unit Price Calculated

Managed funds are required by law to calculate the daily value of the fund and the individual unit price of the fund each business day.

The fund’s value is determined by calculating the overall value of all the available funds and investments that the investment manager is trading each day.

Once this figure is determined we then minus any daily expenses that the fund may have leaving us with the daily total value of the fund.

Hypothetical Example:
$1,002,000 (the value of the overall fund) - $2,000 (the daily expenses of the fund) = $1,000,000 (the daily total of the fund)

Once this daily value has been determined, we then divide the total value of the fund by total number of shares (units) within the fund. This provides the daily unit price.

Hypothetical Examples:
$1,000,000 (the total daily of fund) ÷ 1,000,000 (total number of units within the fund) = $1 unit price

If you invested $100,000 you would receive 100,000 units of the fund.

Then assume the investment managers performed well ant the unit price went to $1.40 per unit
Your total units would now be worth $140,000


Objectives & Strategies

Fund Objective

Both the Retail and Wholesale Funds’ objectives are to provide investors with moderate to high portfolio appreciation over the medium to long-term period. This is achieved through active management strategies of the investment assets.

The Funds will invest in a range of financial products that focus on global macroeconomics by holding both long and short positions. We will seek absolute returns regardless of market direction.

The Fund will predominantly invest in and trade in global futures markets across categories such as:

  • Share indices
  • Interest rates
  • Currencies
  • Commodities
  • Local and International Stocks
  • Over-the Counter Derivatives
  • Cash

Fund Strategy

Our 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 Investment Manager’s advantage lies in correct assessment of broad valuation measures, macroeconomic environment, sentiment and economic forecasting.


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.

 


High-Water Marks

A High-Water Mark is the the highest peak in value that our funds have reached.

Using a High-Water Mark ensures that our investment managers are only paid on their performance if we exceed the Funds previous High-Water Mark.

This means our investment managers do not get paid for poor performance. If our investment manager loses money over a period, they must get the fund above the previous historical High-Water Mark before receiving any performance bonus.

This chart shows examples of when a High-Water Mark has been reached and when a performance fee has been achieved by the Investment managers performance (see examples: A, B, C, D & E).

Managed Wholesale 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.


Corporate Identities

Macquarie Bank Limited – Custody Clearing Services (Brokers)

The Responsible Entity may use a wide variety of brokers to enter into transactions associated with securities and exchange- traded derivatives. The brokers used by the Responsible Entity will be located both in Australia and overseas depending on the nature of the asset traded. The brokers may also provide sub-custodial services for those securities where it is asked to trade. Any fees for these services are part of the Usual Expenses of the Fund.

Macquarie Bank Limited is the Custody Clearing Services (Brokers) for all funds held undermanagement for the JB High Alpha Retail and Wholesale Funds.

Macquarie Bank Limited is the major Custody Clearing Services Broker of choice for all funds held undermanagement for the JB High Alpha Retail Fund.

A custodial account is a financial account (such as a bank account, a trust fund or a brokerage account) set up for the benefit of a beneficiary and administered by a responsible person, known as a custodian, who has a fiduciary obligation to the beneficiary.

Macquarie Bank Limited is one of the world's largest infrastructure asset managers and is one of Australia's top ranked publicly listed companies (ASX:MQG) who employs more than 14,000 staff in over 25 countries.

Macquarie holds a number of licenses enabling it to conduct activities in the jurisdictions in which it operates and is regulated by a significant number of regulators globally.

In Australia, Macquarie Bank Limited holds a banking license and as an Authorised Deposit-taking Institution (ADI), is supervised by the Australian Prudential Regulation Authority (APRA), Australian Securities & Investment Commission (ASIC).

KPMG - Monthly Audit Reporting

Each month the JB Alpha High Wholesale Fund is audited by KPMG to ensure its unit holders have the latest audited information available for the Fund including the latest unit prices and performance updates.

KPMG is a global network of professional accounting and auditing services that provide a full range of financial products across a wide range of industries. These include government and not-for-profit sectors.

KPMG provides Audit, Assurance & Risk Consulting; Deals, Tax & Legal, Management Consulting and Innovation & Digital Solutions. KPMG operates in over 154 countries and have more than 200,000 people working in member firms around the world.

John Bridgeman Limited (JBL) - Investment Manager

The Investment Manager for both the JB High Alpha Retail & Wholesale Funds is John Bridgeman Limited (JBL) ABN: 55 603 477 185.

JBL is a diversified investment management business listed on the National Stock Exchange of Australia. JBL is a corporate authorised representative of JB Markets Pty Ltd AFS Representative Number 1008380.

JBL provides Investment management services to retail and wholesale clients across a range of financial products including:

  • Cash
  • Equity Market Indices (EMI)
  • Exchange-Traded Derivatives (ETD)
  • Government Bonds
  • Listed Shares
  • Unlisted Companies and
  • Interests in Managed Investment Schemes

The investment managers duties also include: working out all the investment products and strategies used with the investment portfolios, monitoring all the portfolio managers on a day-to-day basis and ensuring that all the investment objectives, strategies and parameters agreed to by the clients of the fund are being met.

Stuart McAuliffe - Portfolio Manager

A portfolio manager is a person or group of people responsible for the day-to-day investing of the Fund's assets.

The portfolio manager for both the JB High Alpha Retail and Wholesale funds is Stuart McAuliffe, who is the Managing Director and Chief Investment Officer of JBL.

Stuart has over 25 years experience investing in global equity, bond, currency and commodity markets, capital venture and strategic management. 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, Stuart uses a 'layered' approach combining multiple time frame fundamental analysis in markets and diversification through asset ownership and ventures.

Stuart leads a team of investment professionals, each of whom have considerable experience and expertise across global markets and he is responsible for the funds’ performance.

Share Prices - Client Services / Research / Administration

Share Prices Pty Ltd and Share Prices Funds Management Pty Ltd, are dual authorised advisory firms of JB Markets Pty Ltd and Share Prices Australia Pty Ltd for the purpose of providing the JB High Alpha Funds’ administrative and client services for the Funds unit holders.

Share Prices Australia Pty Ltd also provides analysts, analytical research tools and other market data products for various trading strategies used within the two funds.

Wholesale Structure Diagram

Managed Wholesale Funds


Fact Sheet

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Managed Wholesale FundsManaged Wholesale Funds

 


Risks


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.

 


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 Wholesale Funds

 


Online Application

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Managed Wholesale Funds


Paper Application

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Managed Wholesale Funds


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:

All financial products displayed in this presentation are provided to you on the grounds that you accept that each of the products displayed may be 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 to you by Share Prices Funds Management Pty Ltd (ABN: 81 623 398 890 ) which is a corporate Authorised Representative (AR Number: 1263287) of JB Markets Pty Ltd (AFSL 323182) ABN: 81 123 876 291.

For the purpose of Information Services, Customer Support and Account 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) ABN: 81 123 876 291.

For the purpose of Online Trading, advisory services and Advisor Support, these services will be provided by Share Prices Advisory Services Pty Ltd (ABN: 27 623 398 890) which is a corporate Authorised Representative (AR Number: 1263288) of The Market Bell Pty Ltd (AFSL 465937) ABN: 90 153 184 108.

All of the above companies are also a dual Authorised Representative of Share Prices Australia Pty Ltd (AFSL 287367).

Trading any financial products, including foreign exchange contracts, futures and cfd’s 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 its important to note that Any advice provided is general advice only including any form of recommendation services. Before deciding to invest in any type of investment you should be aware of all the risks associated with investing in Managed Funds, MDA’s, Stocks, Indexes, 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 and seek advice from an independent financial advisor if you have any doubts.

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.

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.

Any performance comparisons provided in these demonstration do not take into account any brokerage, management or performance fees.
The trading performances and unit pricing displayed in this demonstration are based off the JB High alpha wholesale funds investment managers performance.


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