Overview
The Challenger Enhanced Opportunity Share Fund will invest in long and short positions in Australian shares listed on the Australian Securities Exchange (ASX). The Fund can invest up to 50% of the Fund's net asset value in short positions and up to 150% of the Fund's net asset value in long positions. The Fund aims to be fully invested but may invest up to 40% in cash or derivatives where it is deemed that investment opportunities are limited.
Objective
To outperform the S&P/ASX 200 Accumulation Index over rolling five-year periods.
Investment style
We believe that markets are inherently inefficient, giving rise to opportunities that can be exploited to add value for our clients. Through fundamental research we aim to identify companies that are mis-priced relative to their fundamental valuation. Our investment approach centres on adopting a balanced approach to investing with respect to style, size, process and risk versus return. Our 'style neutral' approach provides the potential to outperform over a full business cycle, moderate the cyclical swings from growth and value investing, and form a core holding in a diversified investment portfolio.
Update of information - short selling
27 October 2008
The Australian Securities & Investments Commission (ASIC) on 21 October 2008 extended the ban on covered short selling for non-financial securities for a further 28 days until 18 November 2008, when it expected the ban would be lifted. The ban on financial stocks will continue until 27 January 2009, and while the US has lifted its bans, other jurisdictions such as the UK are maintaining bans on financial stocks.
26 September 2008
The Australian Securities & Investments Commission (ASIC) has announced that from the opening of the Australian Stock Exchange on Monday, 22 September 2008, covered short selling of securities has been banned for at least 30 days. Covered short selling involves borrowing a security and then selling it, with the expectation of buying it back at a lower price (or profit) in the future.
The Fund uses covered short selling to reflect the stock picking views of the portfolio manager and the broader Australian equities team. The existing short positions within the Fund are not affected by the ASIC exclusion period, as they are all covered positions, and so do not have to be unwound. However, the Fund is restricted from placing new short positions during the current 30 day exclusion period.
The Fund currently holds an overall 'long' exposure approximately in line with the market (i.e. 100% long) comprised of around 115% bought positions (held long), partially offset by 15% sold (covered short) positions. Although additional short positions will not be added to the Fund during the exclusion period, the overall composition of the Fund means that the portfolio manager’s view will continue to be overwhelmingly reflected.
ASIC will reassess the situation and advise the market in 30 days (from 22 September 2008) whether or not it will re-open covered short sales on non-financial securities. In the case of financial securities, ASIC's review will be in line with the time limits imposed by international regulators from countries like the US and the UK.
For more information contact your financial planner or call our Investor Services team on 13 35 66.
Interests in the Challenger Enhanced Opportunity Share Fund are offered by Challenger Managed Investments Limited ABN 94 002 835 592. AFSL 234668.
The offer or invitation to subscribe in interests in the product is only available to persons receiving the PDS in Australia and is subject to terms and conditions described in the PDS. Neither product issuer, any Custodian, nor any entity or person associated with the Challenger Financial Services Group of companies guarantees repayment of your capital or the performance of your investment.
The information contained above has been prepared without taking account of any person's objectives, financial situation or needs. Because of that, each person should, before acting on any such information, consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Each person should obtain a current PDS relating to the product and consider that document before making any decision about the product.
If you acquire or hold one of our products, we will receive fees and other benefits which are generally disclosed in the PDS or other disclosure document for the product. We and our employees do not receive any specific remuneration for any advice provided to you. However, financial advisers (including any Challenger group companies) may receive fees or commissions if they provide advice to you or arrange for you to invest with us. Some or all of Challenger group companies and directors of those companies may benefit from fees, commissions and other benefits received by another group company.
