Ranger Fund

The Castle Point Ranger Fund can invest in a broad range of New Zealand and Australian assets, including cash, debt instruments, equities, derivatives and other assets.

Objective

The objective is to provide equity-like returns over the long term while minimising exposure to extreme share market fluctuations.

The performance objective is to outperform the NZ Official Cash Rate by 5% per annum over the long-term, after all fees (and other expenses) but before tax.

Investment Strategy

We believe that superior returns are generated by investing with a long-term perspective and focusing on capital preservation. 

The investment strategy of the Ranger Fund is to exploit market inefficiencies resulting from a bias to short term performance by financial market investors, through investing in a range of Australasian assets.

These inefficiencies exist because, in our opinion, financial market investors tend to:         

•     focus on recent past performance

•     underestimate the effect of capital flows and the resilience of poor returning companies (we call this the 'Value opportunity')

•     underestimate the length of time growth companies can earn excess returns (we call this the 'Quality opportunity').

We focus our research time and stock selection on Value and Quality opportunities. We use a disciplined process to identify, research and monitor these opportunities.

There are times in the economic cycle when equity prices can become excessive and the upside from equity investments is limited.  Depending on the prevailing investment environment the Ranger Fund might be significantly invested in equities, or might be significantly invested in cash and debt instruments, or it might use derivatives.

Castle Point has broad discretion on the type and proportion of Australasian assets the Ranger Fund invests into. Given the broad investment mandate of the Ranger Fund there is no target asset allocation or investment mix. There are some restrictions and investment limits on certain assets. Refer to the Fund’s current statement of investment policy and objectives (see Documents).

Details

Fund Type NZ managed investment scheme. The fund is a Portfolio Investment Entity (“PIE”)
Supervisor Public Trust
Auditor Deloitte
Administration MMC
Establisment Date 24th January 2014
Objective NZ Official Cash Rate + 5%
Minimum Investment $10,000
Entry/Exit Fees Nil
Buy/Sell Spread Nil
Management Fee 1.05% per annum which covers our management fee and normal operating expenses of the Ranger Fund
Performance Fee The performance fee is 15% of any return above NZ Offical Cash Rate + 5% per annum (after all fees but before tax) with a perpetual high water mark
Applications/Withdrawals Daily, by 11am (NZ time)

Investment Ranges

  Range
New Zealand Equities 0-100%
Australian Equities 0-100%
Cash 0-100%
NZ or Australian Bonds 0-100%
Unlisted Equities 0-10%
Unlisted Debt Instruments 0-10%

 

Independent research report

The Ranger Fund is rated AA by FundSource. To login to FundSource market research please click here.

Please contact us if you would like more information.

 

Further Information

For further information and to invest please download the Product Disclosure Statement

For Ranger Fund unit prices click here.

Units in the Ranger Fund are issued by Castle Point Funds Management Limited.