Investment Funds

Peak Asian Absolute Return Fund - Summary

Investment objective

The Peak 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. This fund is a mirror fund of the K2 Asian Absolute Return Fund, denominated in U.S. dollars and incorporated in the Cayman Islands.

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 2000

Features

• Initial Investment US$50,000 minimum
• Additional Investment US$10,000 minimum
• Withdrawals US$10,000 minimum

Fees

• 1.5% p.a. Management Fee
• 20% p.a. Performance Fee after an annual high-water mark and 6% hurdle
• No application/redemption fees
• No buy/sell spread
• Monthly subscriptions and redemptions

Notice times

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

Dealing Day and Valuation Day

Last business day of each month

Investment Advisor

K2 Asset Management Ltd

Prime Broker/Custodian

Morgan Stanley & Co. International Limited

Administrator

HSBC Institutional Trust Services (Asia) Limited

Information Memorandum

For further information (and application form) on the Peak Asian Absolute Return Fund please contact K2 at information@k2am.com.au to request an Information Memorandum.