“An innovative Australian fund that targets a high income return over a three to five year investment horizon.”
The investment strategy seeks to capture returns from investing in some of Australia’s leading ASX listed property securities, with the objective of increasing the income generated by implementing an active call option selling (‘writing’) strategy. A portion of the additional income may be used to purchase put options for protection.
The Investment Adviser, uses detailed quantitative and qualitative analysis to identify property securities within the Australian property sector (the ‘Investment Universe’) that can be expected to:
- Provide a higher than average dividend yield over the medium term (including the influence of franking credits, and special dividends and other financial restructuring); and
- Provide the scope for additional income generation by the Trust systematically writing over the counter call options on these securities.
The portfolio, which will target to hold 10 – 20 securities directly at any one time, will be refined every three months or more regularly if the Investment Adviser recommends. The weighting of each security will be subject to the Investment Adviser’s discretion, but generally no single investment will account for more than 20% of the portfolio.
Around 80% of the securities held will be selected from listed A-REIT securities that represent diversified exposure to the Australian listed property market. These securities will be subject to the option overlay strategy of selling call options and buying put options. The remaining securities (up to 20%) may be drawn from other listed property related securities and will not be subject to the option overlay strategy.
How to Invest
1. Read the PDS
2. Either purchase Units on the ASX through your stockbroker under the ASX Code: AUP. We do not charge entry or exit fees when investors purchase or redeem their holdings on-market, however transaction/brokerage costs may apply.
3. Alternatively complete the application form in the PDS and forward funds with your application. Applications are processed daily and must be received by 12.oo pm each Business Day to be processed at the end of Business Day.
4. Receive confirmation of your investment via email or post.