Dynamic Australian Equity Fund

The WaveStone Dynamic Australian Equity Fund offers investors a benchmark unaware long/short Australian equities opportunity with the objective to add value over the long term through a high conviction portfolio.

Fund Facts
Objective The Fund aims to provide capital growth over the long term (at least five years).
Benchmark
^The S&P/ASX 300 Accumulation Index.
Stocks held Typically between 25 and 50
Investment universe The Fund may:

  • invest in shares of companies listed, or intended to be listed within 12 months, on the Australian, New Zealand and international stock exchanges in other developed markets
  • short sell a security where there is a belief that the security is overvalued or for hedging purposes
  • use options, futures and other derivatives to manage risk
  • borrow cash (gear) to invest in securities.
Minimum investment timeframe At least five years
Minimum initial investment $10,000 or $1,000 with Regular Savings Plan
Management fee 0.99% p.a. of the net asset value of the Fund
Performance fee 15% of the Fund’s return above the S&P/ASX 300 Accumulation Index
Distribution frequency Yearly
APIR code HOW0053AU

^ From 1 January 2014, the benchmark of the Fund changed to the S&P/ASX 300 Accumulation Index. Prior to this, the benchmark of the Fund was the RBA Cash Rate.
You should read the Fund’s Target Market Determination (TMD) and the Fund’s Product Disclosure Statement (PDS) to ensure the key attributes of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs. These documents are available on the Invest Online page on this website. 

Short selling

Shorting creates a bigger “float” with which a fund manager can than reinvest into better performing companies. This is the most extreme and aggressive form of capital allocation efficiency.

The WaveStone  Dynamic Australian Equity Fund has the ability to short stocks. Shorting is not mandated however it does increase the opportunity set available for return enhancement. WaveStone restricts its modest short selling (max 10 stocks) largely to the top 100 companies for liquidity reasons with the investment typically having none or very few Superior Corporate DNA traits, industry headwinds and solvency concerns. Overly optimistic broker expectations are the icing on the cake as the valuation tests are applied and if found to be overvalued the stock is shorted.

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Awards

© 2020 FE Money Management. all rights reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FE Money Management (2) may not be copied or redistributed (3) do not constitute investment advice offered by FE Money Management (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security (5) are not warranted to be correct, complete, or accurate. FE Money Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. FE Money Management does not guarantee that a fund will perform in line with its Fund Manager of the Year award as it reflects past performance only. Likewise, the Fund Manager of the Year award should not be any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision.