ALARTAS

Antares Lodestar Absolute Return Trust – Australian Shares


Investment objective
To provide investors with superior absolute returns in both rising and falling Australian equity markets over the medium to long term. Returns are likely to be less volatile than sharemarket indices over the medium term. The Trust aims to outperform the 90 day Bank Bill Rate* over rolling 5 year periods.

The Trust will be closed to new investors if we are of the opinion that investor returns will be compromised by new fund inflows.

* Reset at the start of each calendar quarter (i.e. 1 April, 1 July, 1 October, 1 January).

Investment universe
The Trusts investment universe is companies and other securities predominantly listed on the Australian Stock Exchange.

The Trust can invest in listed equity securities or hybrid equity securities such as convertible notes, redeemable preference shares and partly paid shares. Lodestar may short sell securities that it considers overvalued.

The Trust will usually have some cash investments and will use options, futures and other derivatives.

Suitable Investors
The Trust may be suited to you if you:
  • recognise the greater long-term wealth creation potential of shares relative to other asset classes;
  • wish to benefit from an actively managed Australian share portfolio that allows the investment manager to take both long and short positions;
  • have a longer term investment horizon;
  • can benefit from franking credits;
  • are able to accept the volatility of investing in growth assets and the risk of derivatives; and
  • understand the benefits and risks associated with geared investments.
The Trust may not be suited to you if you:
  • are unable to accept significant short-term volatility or illiquidity as the result of a strategy that is designed to grow real wealth over the long-term;
  • cannot tolerate, either financially or emotionally, the times when the returns from this Trust are different to those of others; and
  • are unable to accept the additional volatility and risks incurred due to gearing.
Research House Ratings
Please refer to the relevant Research House for current ratings.

Fund Category
Absolute Return –
Australian Shares

Inception Date
1 March 2007

Recommended Investment Time
5 years +

Performance
(since inception to 30 June 2008)
Trust: 5.05%
90 day Bank Bill Rate: 9.68%
S&P/ASX 200: -5.43%

Note: Past performance is not indicative of future results. The Trust performance is net of all fees. The indices are not managed and do not incur fees and expenses.

Application / Redemption Fees
Nil

Management Fee*
1.025% p.a.

Performance Fee*
20.5% of returns (net of fees and expenses) in excess of the 90 day Bank Bill rate and after recouping any prior period underperformance

Buy / Sell Spread
+0.30% on application and -0.30% on withdrawal

Distribution
Bi-annually - June and December

* includes GST

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