Absolute Return Fund

The WaveStone Absolute Return Fund is an Australian equity long/short fund available only to wholesale clients (as defined by the Corporations Act 2001). The Fund’s aim is to provide capital growth over the long term. It will vary its exposure to the stock market and operates between 0% and 100% net equity exposure (long positions less short positions).

Fund Facts
Objective	The Fund aims to provide returns that exceed those available from comparable investments.
Benchmark	RBA Cash Rate
Stocks held	Typically between 25 and 50.
Investment universe	The Fund invests in listed investments in Australia and New Zealand, or those expected to list within 12 months.
Minimum investment timeframe	At least five years
Minimum initial investment	$500,000
Management fee	1.25% p.a. (exclusive of GST) of the net asset value of the Fund
Performance fee*	15% (exclusive of GST) of the Total Unit Holder Return in excess of the higher of: the RBA Cash Rate; or 3.75% p.a. (exclusive of GST) (resulting in an absolute return hurdle including management fees, of 5% p.a. (exclusive of GST)).

*The Performance Fee Hurdle will be reviewed on 31 March, 30 June, 30 September and 31 December and adjusted for the following 3-month period to the higher of the RBA cash rate or 3.75%.