Clime Australian Equity Long Short Fund
Clime Asset Management Pty Limited is the Investment Manager of the Clime Australian Equity Long Short Fund (the Fund). The Fund invests in a class of units of the Monash Absolute Investment Fund (the Underlying Fund) created especially for this Fund to use. Launched in 2012, the Underlying Fund is managed by Monash Investors Pty Ltd ABN 67 153 180 333 AFSL 417201 (the Portfolio Manager or Monash Investors).
The Underlying Fund is a Long biased long/short equity fund that invests in a diversified portfolio of Australian equities (long and short), with international listed equities exposure expected to average no more than 5% over seven years. The Portfolio Manager may also invest in Australian unlisted equities, exchange traded derivatives and over the counter (OTC) derivatives, cash and cash equivalent investments.
The Fund’s objective is to preserve capital and pay a regular (quarterly) distributions of at least 6% p.a.
As Investment Manager, Clime seeks to implement the Fund’s investment strategy by investing in units of the Underlying Fund, the Monash Absolute Investment Fund. The Underlying Fund’s investment strategy is ’benchmark unaware’ – that is, the investment strategy is applied without regard to the composition of a market benchmark index, such as the S&P ASX300. There is no predetermined asset allocation; rather, the Underlying Fund only invests when suitable opportunities are identified by the Portfolio Manager.
The Underlying Fund seeks to only invest in compelling opportunities to produce the targeted returns. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement and skill of its experienced portfolio managers. A key strategy of the Portfolio Manager is to use short-selling, which is a process designed to deliver enhanced relative and risk-adjusted returns by increasing the gross market exposure of the Underlying Fund.