Summary
This product is likely to be appropriate for a consumer seeking
capital growth to be used as a
small allocation (<25%) within a portfolio where the consumer has a
five to seven year investment timeframe, a
high to very high risk/return profile and requires
monthly access to capital.
Details
Consumer's investment objective
Capital Growth
In target market
Capital Preservation
Potentially in target market
Capital Guaranteed
Not in target market
Income Distribution
Not in target market
More Information:
The Fund’s primary investment focus is on direct and indirect private equity investments,
or such other investments if the Investment Manager foresees a pathway to equity.
Federation will consider a range of private equity financing stages, including Growth
equity, Buyouts and Special Situations. The product may be suitable for investors seeking
long-term capital growth, preferring to invest in predominantly growth assets which strives
to generate a higher total return. The Fund will endeavour to maintain capital preservation
wherever possible however investors may not get back the full value of their investment
and in certain circumstances investors could lose all of their investment.
Consumer's intended product use
Solution/Standalone - a large allocation (75-100% of portfolio)
Not in target market
Core Component - a medium allocation (25-75% of portfolio)
Potentially in target market
Satellite - a small allocation (<25% of portfolio)
In target market
More Information:
The Fund invests primarily in illiquid growth private equity investments. The Fund will
target investee companies that have particular attributes making the investment a good fit
for the portfolio. The targeted nature of investments suggests that the level of
diversification will be moderate to low across jurisdiction and sector. If the consumer has a
low to medium risk/return profile this product may be suitable to hold as a smaller part of
their total portfolio. If the consumer has a high to very high risk/return profile this product
may be suitable as a core component of their total portfolio.
Consumer's investment timeframe
Short (<= 2 years)
Not in target market
Medium (>2 years)
Potentially in target market
Long (>8 years)
In target market
More Information:
Due to the long-term growth capital nature of the Fund’s investments strategy the recommended timeframe for investment is 5-7 years.
The Fund may be suitable for consumers with a medium to long term investment timeframe.
Consumer's Risk (ability to bear loss) and Return Profile
Low - can tolerate up to 1 period of underperformance over 20 years
Not in target market
Medium - can tolerate up to 4 periods of underperformance over 20 years
Not in target market
High - can tolerate up to 6 periods of underperformance over 20 years
Potentially in target market
Very High - can tolerate over 6 periods of underperformance over 20 years
In target market
More Information:
investors seeking long-term capital growth, preferring to invest in predominantly growth
assets, who have the ability to accept a high potential for loss. The Fund is not suitable for
consumers who are more conservative or low risk. The risk and return profile
classifications are based on the on the view that a portfolio that holds investments in
excess of 50% in growth assets is considered high risk to very high if this allocation to
growth assets exceeds 90% of the portfolio.
Consumer's need to withdraw money
Daily
Not in target market
Weekly
Not in target market
Quarterly
In target market
Annually or longer
In target market
More Information:
Withdrawal requests are accepted monthly. Withdrawal requests are generally deemed effective and relevant units cancelled, subject to receipt of a valid redemption notice, up to 5 business days following the last business day of any given month. Withdrawals are generally paid within 21 days following acceptance; however, the Constitution allows the Responsible Entity to make payment up to 100 days after acceptance date if it considers that it is in the best interests of investors. Redemptions of Units are limited per calendar quarter to 5% of the number of units outstanding at the end of the preceding quarter (unless the Investment Manager advises the Responsible Entity to apply a higher percentage limit). Within a quarter, the Responsible Entity intends to prioritise redemption requests on a ‘first come first served’ basis, until the 5% limit is reached for the quarter. If the 5% limit is reached for a quarter, redemption requests for Units over the 5% limit will be taken to be cancelled.