Investment Funds

K2 Asian Absolute Return Fund - Summary

Investment objective

The K2 Asian Absolute Return Fund aims to preserve capital over the medium term and generate 15% per annum returns after fees over a three to five year investment cycle.

Investment universe

The Fund invests in listed companies and stocks in the Asia Pacific excluding Japan.

Investment process

The investment team does not use a single approach to stock picking, rather, each investment manager brings their own investment style and methodology to the portfolio. Key variables of earnings, valuation and management are examined to determine whether securities are over or undervalued. The investment team’s ability to pick major investment themes, or ‘catalysts’, in a timely manner is a key competitive advantage. The stock selection process is based on the investment manager’s own primary research, direct contact with companies and subscriptions to independent research houses. The Fund actively manages currency exposure with the aim of using hedging to reduce the risk of currency movement and protect stock returns. The level of hedging will depend on K2’s expectation of future currency exchange rate movements.

Inception Date

1st September 1999

Features

• Initial Investment: A$20,000 minimum
• Additional Investment: A$10,000 minimum
• Withdrawals: A$10,000 minimum

Fees

• 1.72% p.a. Management Expense Ratio (MER)
• 20% p.a. plus GST Performance Fee after an annual high-water mark and 6% hurdle
• No application/redemption fees
• No buy/sell spread
• Monthly subscriptions and redemptions

Income distribution

The fund distributes income annually at 30 June

Notice times

For applications, by 4.00pm (AEST) on the relevant Dealing Day. For redemptions, a minimum of 30 days’ notice prior to the relevant Dealing Day.

Dealing Day and Valuation Day

Last business day of each month

Investment Manager & Responsible Entity

K2 Asset Management Ltd

Prime Broker/Custodian

Morgan Stanley & Co. International Limited

Administrator

State Street Australia Ltd

Product Disclosure Statement

Please ensure you read the Product Disclosure Statement for complete information on the K2 Asian Absolute Return Fund.

Financial Statement

Click here to view the 2008 Financial Statement for the K2 Asian Fund.

Click here to view the Interim 2007 Financial Statement for the K2 Asian Fund.

Click here to view the 2007 Financial Statement for the K2 Asian Fund.