Investment Objective
The investment objective of the HFA Octane Fund was to gain enhanced exposure to the performance of a portfolio of diversified international absolute return funds while preserving capital and generating positive returns over the long term. However, in accordance with the Dynamic Management principles employed by the Fund, the Fund’s investment exposure has altered to gain exposure to zero coupon bonds until the Funds maturity date in order to preserve capital.
Investment Strategy
The investments of the HFA Octane Fund may include:
- A leveraged total return equity swap (Swap)
- Zero Coupon Bonds
- Instruments to hedge the foreign currency exposure
- Cash
Term of the Investment
The term of the HFA Octane Fund is approximately eight years, expiring on 31 December 2012 (Maturity Date). Around three months before the Maturity Date, the Responsible Entity will call a meeting of Unitholders to resolve by Special Resolution:
- to wind-up the HFA Octane Fund and distribute the proceeds to Unitholders; or
- invest the HFA Octane Fund assets in another Leveraged Instrument, for a term approved by Unitholders.