Multi Strategy Alternative Fund 2

Multi Strategy Alternative Fund 2 intends to invest substantially all of its assets in shares in the Wellington Fund, which is designed for investors seeking a total return outperforming the ICE BofA 3-Month US Treasury Bill Index Hedged into AUD (net of fees) over a full market cycle (approximately 5 – 7 years).

Wellington Management Company LLP (“Wellington”), a private Delaware limited liability partnership, is the investment manager of Wellington Custom Defensive Alternatives Fund (the “Wellington Fund”), a US Dollar-denominated, Cayman Islands exempted company. Wellington is one of the world’s largest and most experienced investment managers. Wellington’s alternative investments arm was founded more than 25 years ago and as of 30 June 2023 has assets in excess of USD $30 billion serving more than 1000 institutional clients. Wellington’s global expertise spans the hedge fund asset class universe with over 50 different types of alternatives investment strategies.

The Wellington Fund is a multi-strategy fund offering access to a range of investment approaches. This includes, but is not limited to, buying and selling equities and bonds, currencies, convertible securities, commodities and derivative products. This includes both long and short positions.  Wellington, in its capacity as the Wellington Fund’s investment manager, will invest assets of the Wellington Fund in these strategies and in other types of securities and transactions, in accordance with the Wellington Fund’s investment objective and strategies.

The minimum initial investment is AU$5,000 and thereafter in AU$1,000 increments.

The minimum suggested timeframe for investment in the Fund is 5 years. Distributions (if any) are paid annually as at 30 June.


What are the benefits of investing in the Fund?

  • The Fund provides investors with exposure to a set of diversified alternative strategies professionally managed by Wellington. Wellington is one of the world’s leading asset managers. Since its formation in 1928, it has expanded from its headquarters in Boston to the main international and Asian financial centres, providing clients with local knowledge and global expertise across more than US$1trillion in assets under management,  including equities, bonds, multi-asset and alternatives.

  • The Fund is designed to have low sensitivity to traditional markets such as equities and bonds over a full market cycle (5 - 7 years) and has the potential to provide portfolio diversification benefits.

  • The Fund is designed for investors seeking a total return outperforming the ICE BofA 3-Month US Treasury Bill Index Hedged into AUD (net of fees) over a full market cycle (approximately 5 – 7 years). For example, if you acquired $5,000 of units in the Fund at a price of $1 per unit and the net sale proceeds (after fees) were $1.20 per unit, the amount of the benefit would be $1,000. This example is provided only for illustrative purposes.

  • The Wellington Fund is a multi-strategy alternatives fund benefiting from the Investment Manager’s resources and experience in evaluating, selecting, monitoring strategies and portfolio construction.

  • The Wellington Fund provides access to underlying strategies which might not be otherwise available to a retail investor located in Australia, whose investment vehicles may be closed to new investors and/or whose minimum investment requirements are higher, or liquidity is more restrictive than that of the pooled Fund.

  • An investor can invest in Units for a minimum initial investment of AU$5,000 and increments of $1,000 thereafter. 

 

Target Market Summary

This product is likely to be appropriate for a consumer seeking capital growth from a diversified portfolio of alternative investment approaches with a medium risk (expect 2 to less than 3 years of negative annual returns over any 20-year period) and return profile to be used as a satellite allocation (<25%) within a portfolio where the consumer has a medium-term (at least 5 years) investment timeframe,  and needs monthly access to capital.

Important Information

This information is of a general nature only and has been prepared without taking into account your objectives, financial situation and needs. Before acting on this information you should consider its appropriateness having regard to your circumstances. You should obtain and consider the latest Product Disclosure Statement before making a decision to invest in the fund.