At a glance
- Structure
- An individually managed account. Assets and the trading account are registered in your own name
- Minimum investment
- $500,000
- Minimum period
- 12 months
- Management fee
- Nil
- Performance fee
- 20% excluding GST of returns above the benchmark, after fees and usual expenses, protected by a rolling high watermark
- Benchmark
- Monthly BBSW rate
- Rebalancing
- Monthly
- Platform
- Interactive Brokers, with reporting through the IBKR client portal
- Investment manager
- Tycoon Funds Management Pty Limited ACN 651 361 045
- Eligible investors
- Wholesale clients as defined in section 761G of the Corporations Act
Four things a pooled fund cannot give you.
You own the assets
Every holding, and the trading account itself, is registered in your name. You are not buying units in a pool alongside other investors whose decisions affect your position.
The portfolio is built for you
We set the risk and return objectives with you at the outset, and you can revisit them as your circumstances change. The portfolio is rebalanced monthly against those objectives rather than against a fixed mandate.
Your tax position is your own
Because you hold the assets directly, capital losses can be applied against your own current or future gains. You do not inherit embedded tax positions created by other investors entering or leaving a pool.
We are paid on performance
There is no management fee. We are paid 20% of returns above the monthly BBSW benchmark, and a rolling high watermark means we must recover any prior underperformance before a performance fee becomes payable again.
The four strategies
Four starting points, each shaped further to your objectives. Target returns are targets only and are not guaranteed.
| Defensive | Balanced | Advanced | Venture | |
|---|---|---|---|---|
| Target return | 6% plus | 10% plus | 20% plus | 25% plus |
| Risk | Low | Moderate | Medium to high | High |
| Asset classes | Bonds, REITs, ETFs | Bonds, blue chip equities, ETFs | Quality and high growth companies | Technology and high growth equities |
[PLACEHOLDER] Compliance to confirm whether these target returns can be published. They are stated in the IMA brochure but a 25% target published on a licensed website will attract scrutiny. Consider replacing the numbers with risk descriptors and providing the targets only within the Information Memorandum.
Where we invest
The portfolio holds listed companies and funds, selected international listed investments and bonds, and may hold unlisted Australian managed funds. Cash is deployed without a fixed weighting, and fixed interest may be used defensively in unsettled markets.
| Dimension | Scope |
|---|---|
| Geography | Australia, United States, Japan, New Zealand, the United Kingdom and the European Union. China and India are not expected to be a focus. No direct exposure is sought to emerging markets |
| Asset classes | Government and corporate bonds, ETFs, REITs, listed equities and alternatives |
| Derivatives | Exchange traded only, never over the counter, and used only to manage risk |
| Short selling | Not undertaken |
| Borrowing | The service does not borrow to invest |
| ESG | Environmental, social and governance factors form part of portfolio construction, without formal weightings |
Wholesale eligibility.
This service is available only to wholesale clients as the Corporations Act defines that term, which includes sophisticated and professional investors. If you are investing less than $500,000, the simplest way to establish your status is an accountant’s certificate. There are other ways to qualify. Contact us if you are not sure.
[PLACEHOLDER] Compliance approved wholesale disclaimer for this page.
How the account works
Four steps.
From setting objectives to ongoing review, with full visibility of every transaction along the way.
Set your objectives
We work through your risk tolerance, return target, time horizon and any constraints, and agree the strategy your portfolio will be managed against.
Open your account
You complete the application, provide identification, and confirm your wholesale client status. An accountant’s certificate is the most common way to establish this.
We manage, you watch
The portfolio is constructed and rebalanced monthly. You can see every transaction and market value at any time through the client portal.
Review and adjust
We review the portfolio against your objectives periodically, and you can adjust your risk preferences as your circumstances change.