Longreach CAI

About

Longreach CAI (‘LCAI’) represents Creighton AI (‘CAI’) in regard to the CAI strategies offered and implemented for Australian investors.

LCAI manages the relationship with CAI to support marketing and servicing of investors in Australia, reporting on the relevant investment and operational matters.

CAI is a quantitative investment management firm that specializes in systematic global equity strategies including market-neutral, long-only and passive enhanced variations through the application of a proprietary machine learning algorithm.

We believe that scientific investing can better produce consistent, repeatable, risk-adjusted performance for investors.

CAI brings together a deeply experienced, global investment team providing investors the opportunity to invest into a best-in-class global equity investment solution. CAI specialises in providing global alpha solutions, delivered through combining a unique set of predictive factors and advanced machine learning resulting in highly differentiated quantitative solutions.

Approach

The fundamental pillars that underpin our investment philosophy and ensuing processes are as follow:

  • We adhere strongly to the tenets of active management;
  • We believe history repeats due to the persistence of investor behavioural biases;
  • Separating signal from noise contributes to more successful forecasting of returns;
  • Scientific investing and the application of Machine Learning is the basis of our forecasting processes;
  • Domain expertise is key to successful quantitative based investing;
  • Research and Development is advantageous in a competitive and technologically advancing world.

Read more information about CAI.

Our Capabilities

CAI Global Market Neutral Fund

ARSN: 631 270 276 | APIR: DAM9817AU

Objective

The Fund aims to provide investment returns in excess of the Reserve Bank of Australia (‘RBA’) cash rate over a rolling 3 year period after fees.

Strategy

The Fund operates as a ‘fund-of-fund’ and gains its investment exposure through its investment in the Australian dollar (‘AUD’) share class of the Creighton AI Fund (Cayman) Ltd (referred to as the ‘Underlying Fund’).

The Underlying Fund aims to generate positive returns in all market environments by reducing the majority of market risk and focusing primarily on capital preservation and alpha generation.

The Underlying Fund utilises a global market neutral strategy through implementing a differentiated, global quantitative process which invests in listed global equities.

Fund Key Features

Inception Date
15 November 2019
Return Target
8-12% per annum
Volatility Target
8%-12% per annum
Benchmark
RBA cash rate
Std. risk measure
4 - Medium risk of short term loss
Min Invest.
$20,000
Liquidity
Daily
Distribution (if any)
Paid annually as at 30 June
Buy/sell spread
Nil
Investments

The Underlying Fund can invest in any country that is a member of the MSCI ACWI Index. Long or short exposure can be achieved by holding these securities directly or via equity swaps. The Underlying Fund may use exchange-traded funds and both exchange-traded and over-the-counter equity derivatives including equity swaps and equity index products associated with the countries in which the Fund invests. Currency forward contracts and spot foreign exchange are used to manage currency exposures.

Fees

Management fee: 1.35% p.a

Expense recovery: Estimated to be 0.15% p.a

Performance fee: 20% of excess performance above the benchmark and after fees, provided specific performance hurdles are met

CAI Australian Share Fund

ARSN: 114 291 299 | APIR: PAT0001AU

Objective

The Fund aims to outperform (net of fees) the S&P / ASX 300 Accumulation Index by 2% p.a. over rolling 3-year periods. With target tracking error of 4% to 6% p.a.

Strategy

The Fund utilises a long only strategy through implementing a machine learning based quantitative investment process which primarily invests in listed Australian equities.

Fund Key Features

Manager Appointed
1 April 2021
Return Target
2% per annum
Volatility Target
4% per annum
Benchmark
S&P/ASX300 Accumulation Index
Std. risk measure
6 - High Risk
Min Invest.
$20,000
Liquidity
Daily
Distribution (if any)
Paid semi-annually
Buy/sell spread
+/- 0.20%
Investments

The CAI Australian Share Fund invests predominately in companies included in the S&P/ASX 300 Accumulation Index plus up to 10% exposure to international companies. Investments of the Fund may also include derivatives such as index futures and currency forward contracts which would be used for risk management purposes or as substitutes for physical securities.

Fees

Management fee: 0.56% p.a.

Expense recovery: Estimated to be 0.22% p.a.

Performance fee: Nil

Unit Registry Information

State Street Australia Ltd
Level 14, 420 George Street
Sydney NSW 2000
Fax: 02 9323 6411

UNIT PRICES AS AT 23 SEPTEMBER 2021
Application Price

1.8114

Withdrawal Price

1.8041

Download Unit Price History