(This investment is available only to ‘wholesale clients’ as defined in the Corporations Act)
Invest in an unregistered managed investment scheme targeting a ‘benchmark return of RBA Cash Rate plus 3.5% per annum (after costs but before tax), over a rolling three-year basis*.
The information below is a summary of this investment opportunity. Investors must obtain and read the Information Memorandum dated February 2025) before investing in this opportunity.
Capitalised words on this page have the meaning in the Information Statement.
Overview
The Australian Credit Opportunities Fund (ACOF) was established in September 2023 as an ended, unlisted, unregistered Australian wholesale managed investment scheme, structured as a unit trust.
ACOF invests in, or otherwise obtains exposure to Australian and foreign Fixed Income Securities directly, or indirectly through ‘deferred purchase agreements’ (DPAs) It may also invest in other credit instruments.
The Investment Manager intends to adopt Yield Enhancement Strategies in order to manage duration and credit risk, gearing purposes and exploiting market inefficiencies and mispricing and arbitrage opportunities.
The investments and exposures of ACOF are unsecured obligations of financial counterparties which are likely to be in foreign jurisdictions and denominated in foreign currency. As such, an investment in the Units should be considered a moderate risk.
Disclosure Documents
Marketing Documentation
Key Terms
| Issuer | ABE Guardian Pty Ltd ACN 679 115 372, Corporate Authorised Representative 1312150, in accordance with an intermediary authorisation granted to Novus Capital Ltd ACN 006 711 995 AFSL 238168 (Novus). |
|---|---|
| Investment Manager | ABE Investment Management Pty Ltd ACN 670 007 762, Corporate Authorised Representative 1305309 of Australian Bond Exchange Pty Ltd ACN 605 038 935 AFSL 484453. |
| Arranger | ABE Distribution Pty Ltd ACN 673 177 912, Authorised Representative 1307088 of Novus. |
| Benchmark Return* | The RBA Cash Rate plus 3.5% per annum (after costs but before tax), over a rolling three-year basis. |
| Application Price | Units are issued at the prevailing ‘net asset value’ (NAV) of the Fund as at the date the Application is accepted, divided by the number of Units on issue, plus any applicable Buy Spread. |
| Minimum Investment Amount | $50,000 with additional investments in multiples of $50,000. |
| Minimum Balance | $50,000 |
| Minimum Investment Period | Unitholders may not withdraw their Units for 12 months after the Units are issued. |
| Minimum Suggested Investment Period | 4 years, however, this is a guide only and is not a recommendation. |
| Withdrawal Dates | 31 March, 30 June, 30 September and 31 December of each year. Unitholders must submit a Withdrawal Request to the Trustee at least five Business Days before the Withdrawal Date. |
| Withdrawal Price | The prevailing NAV of ACOF on the Withdrawal Date, divided by the number of Units on issue, less any applicable Sell Spread. |
| Minimum Withdrawal | $50,000 |
| Distributions | The net income of ACOF will be distributed quarterly to the holders of Units as at 31 March, 30 June, 30 September and 31 December. The Trustee may decide to make distributions of capital |
| Fees | Unitholders will be charged the following fees:
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| ABE Code | ACOT035000 |
*The Benchmark Return is not a forecast of the expected rate of return that an investment in the Fund will generate. It is an indication of what the Investment Manager aims to achieve over the medium term on the assumption that credit markets remain relatively stable. The Investment Manager may not achieve the Benchmark Return.
Risks
This is an overview of the main risks associated with this investment. Further details are set out in the Information Memorandum.
- Limited Performance History – ACOF was only established in September 2023 and there is limited investment performance or track record for the Trustee or the Investment Manager have limited investment performance or track record for the Fund or the Investment Manager
- Investment Manager Risk – Investment returns are heavily dependent on the expertise of the Investment Manager and investment professionals that determine what assets and investments ACOF should acquire. There is a risk that the Fund may fail to meet its investment objective due to the Investment Manager’s investment selection, implementation processes, or use of Yield Enhancement Strategies.
- Market Risk – Markets may be affected by changes in general market conditions such as interest rates, inflation rates, government regulations, overall industry conditions, competition, political conditions and legislation. Such occurrences may have an adverse impact on the value of some or all of the assets of ACOF.
- Foreign Exchange Risk – Some or all of the investments to which ACOF gains exposure will be denominated in foreign (non-Australian) currency. The Investment Manager may, but is not obliged to, hedge the foreign exchange exposure of ACOF. Therefore, Unitholders are likely to be exposed to significant unhedged foreign currency movements.
- Concentration Risk – The Investment Manager is not subject to any limitations on the degree of concentration of the Fund’s investments (for example, it is possible that all of the Assets could be linked to the performance of one or a small number of issuers).
- Withdrawal Risk – Substantial withdrawals by one or more Unitholders in the Fund at any one time could require the Trustee to liquidate its positions more rapidly than otherwise desired in order to raise the cash necessary to fund those withdrawals. This may result in withdrawals being suspended or the Trustee may ‘scale-back’ the amount requested under a Withdrawal Request.
Disclaimer: This webpage has been prepared by ABE Distribution Pty. Ltd ACN 673 177 912 (“ABE”). ABE is a Corporate Authorised Representative number 1307088 of Novus Capital Limited ACN 006 711 995 AFSL 238168. The information contained in it is of a general nature only. It was prepared without considering your financial needs, circumstances and objectives. Before investing in this security, you should consider whether it is appropriate for your circumstances and review the Master PDS and PDS. This website may contain links to other third-party websites, some of which require a subscription to read. Such links are for your convenience only, and ABE does not recommend or endorse these third-party sites. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. Past performance is not an indication of future performance. To the maximum extent permitted by law ABE disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything on this webpage.