Minimum initial investment: $20,000


Your opportunity to invest in the Australian Eagle Trust, a Long Short Fund that aims to deliver out-performance and capital growth over five-years through a leveraged investment in Australian shares

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Overview

Investment Strategy

The Australian Eagle Trust, Long-Short Fund (the Fund) aims to provide capital growth over the long term through a leveraged investment in Australian shares. The Fund's objective is to outperform the S&P/ASX 100 Accumulation Index over 5 years[1]. The Fund has delivered a net return of 14.43% p.a.[2] since inception in July 2016 to 30 April 2024, outperforming its benchmark by 4.83% p.a.. 

Australian Eagle’s investment team seeks to buy superior quality stocks with a sensible risk buffer and hold those investments so that the longer-term advantages of those companies result in a superior rate of return. The investment process is designed to identify stocks that have the most characteristics of a superior company, whilst also offering a valuation edge. These superior companies can be characterised by quality management who are committed to shareholders, operate in a growing market, and have a long-term competitive advantage.

On the short side, Australian Eagle seeks to sell companies that do not display these characteristics or rank poorly on such characteristics compared to superior companies and exhibit poorer technical characteristics.

The Fund uses an index-independent approach and seeks diversification by investing in 25 to 35 stocks in the long portfolio and 12 to 25 stocks in the short portfolio. The Fund is generally 150% long and 50% short with a net 100% long position.

The process of finding companies is derived from a fundamental, bottom up-up research process, which Australian Eagle has consistently applied since 2004 for its long-only portfolios. The Fund typically invests in cash and cash equivalent instruments, Australian listed shares and other equity-like securities and may invest in derivatives.

The Fund is a unit trust that is a managed investment scheme which is registered with ASIC.  

Why invest

  • The Fund aims to provide capital growth over the long term through leveraged investment in Australian securities. The objective is to outperform the S&P/ASX 100 Accumulation Index[1] over five years.
  • Excess returns: an enhanced potential for excess returns through the use of short selling techniques and the use of leverage.
  • Track record: the Fund has achieved an out-performance, delivering a net return of 14.43% p.a.[2] since inception in July 2016 to 30 April 2024.
  • Portfolio diversification: the Fund uses an index-independent approach and seeks diversification by investing in 25 to 35 stocks in the long portfolio and 12 to 25 stocks in the short portfolio. The short positions more fully utilise Australian Eagle’s research effort and may result in a lower portfolio correlation with markets by holding both long and short positions.
  • Access to an investment strategy: that would ordinarily be difficult for individual investors to employ, that uses an enhanced potential for excess returns through the use of short-selling techniques and leverage.

Fund Risks
Generally, the higher the expected return of an investment, the higher the expected risk.  Traditionally listed shares have generally been considered to be more volatile (will experience greater fluctuations in value) than fixed income, while fixed income has generally been more volatile than cash. Please review Page 19 of the PDS to review the Fund risks.

[1] Outperformance of the S&P/ASX 100 Accumulation Index is not guaranteed.
[2] Past performance is not indicative of future performance. Specific risks of the Fund may impact on the possibility of such a return in future.

Fund Profile

Style Active (Long Short Equity)
Benchmark S&P ASX 100 Accumulation Index
Fund fact sheet Download

Montgomery Investment Management has a Distribution Partnership with Australian Eagle Asset Management.

Investment Manager

Investment Manager: Australian Eagle Asset Management Pty Ltd

Australian Eagle Asset Management (Australian Eagle) opened in Sydney in 2004 and specialises in Australian equities. The firm is owned and operated by its team and manages over $1 billion through two strategies: a domestic long-only strategy including Montgomery funds and the Australian Eagle Trust Long-Short Fund.

Australian Eagle's investment process seeks to buy superior quality Australian securities with a sensible risk buffer and hold those investments so that the longer-term advantages of these companies manifest in a superior rate of return.  Superior companies are characterised by quality management who are committed to shareholders, operate in a growing market, and have a long-term competitive advantage. On the short side, the Fund seeks to sell stocks in companies that do not display these characteristics or rank poorly compared to the superior companies.

About the fund See all videos

 

An introduction to the Australian Eagle Trust Long Short Fund

 

The benefits of the Australian Eagle Trust Long Short Fund

Australian Eagle Trust Long Short Fund Ratings

The Australian Eagle Trust Long Short Fund has been rated Recommended

The Australian Eagle Trust Long Short Fund has been rated Recommended

The Australian Eagle Trust Long Short Fund has been rated Outstanding

Performance

Comparative Returns Since Inception to 30/04/2024 (After all fees)

PERFORMANCE CHART
LATEST UNIT PRICE
FUND PERFORMANCE
INCOME DISTRIBUTION
[["date","Australian Eagle Trust Long Short Fund","S&P\/ASX 100 Accum. Index"],["1\/6\/2016",100000,100000],["31\/7\/2016",110518,106124],["31\/8\/2016",111613,104474],["30\/9\/2016",110410,104898],["31\/10\/2016",105842,102928],["30\/11\/2016",108955,106286],["31\/12\/2016",114575,110985],["31\/1\/2017",114289,110325],["28\/2\/2017",120169,112835],["31\/3\/2017",120102,116603],["30\/4\/2017",122435,117902],["31\/5\/2017",124034,114584],["30\/6\/2017",124481,114622],["31\/7\/2017",122370,114598],["31\/8\/2017",128820,115215],["30\/9\/2017",129075,115094],["31\/10\/2017",135977,119454],["30\/11\/2017",137406,121169],["31\/12\/2017",138918,123236],["31\/1\/2018",142270,122777],["28\/2\/2018",146658,123236],["31\/3\/2018",141004,118432],["30\/4\/2018",146902,123058],["31\/5\/2018",150345,124149],["30\/6\/2018",155758,128439],["31\/7\/2018",154056,130480],["31\/8\/2018",156284,132140],["30\/9\/2018",152783,130425],["31\/10\/2018",141145,122962],["30\/11\/2018",140403,120016],["31\/12\/2018",143529,120339],["31\/1\/2019",152115,124749],["28\/2\/2019",157737,132127],["31\/3\/2019",160513,133239],["30\/4\/2019",166371,136244],["31\/5\/2019",169946,139140],["30\/6\/2019",181103,144662],["31\/7\/2019",188348,148702],["31\/8\/2019",183714,145597],["30\/9\/2019",183377,148256],["31\/10\/2019",182746,147716],["30\/11\/2019",189686,152701],["31\/12\/2019",186303,149297],["31\/1\/2020",196463,156865],["29\/2\/2020",183692,144857],["31\/3\/2020",153864,114951],["30\/4\/2020",166668,124621],["31\/5\/2020",183290,129416],["30\/6\/2020",189414,133319],["31\/7\/2020",196227,133986],["31\/8\/2020",199810,137342],["30\/9\/2020",192755,132266],["31\/10\/2020",201139,135035],["30\/11\/2020",199887,148837],["31\/12\/2020",199887,150498],["31\/1\/2021",200139,151124],["28\/2\/2021",203854,153338],["31\/3\/2021",206810,157212],["30\/4\/2021",221831,162731],["31\/5\/2021",229886,166966],["30\/6\/2021",239117,170535],["31\/7\/2021",247174,172521],["31\/8\/2021",254633,176452],["30\/9\/2021",250140,173191],["31\/10\/2021",256736,173145],["30\/11\/2021",258363,172171],["31\/12\/2021",266753,177065],["31\/1\/2022",240699,166314],["28\/2\/2022",239559,170242],["31\/3\/2022",263233,182354],["30\/4\/2022",269907,180992],["31\/5\/2022",259426,177019],["30\/6\/2022",248026,162067],["31\/7\/2022",252793,170670],["31\/8\/2022",266858,172807],["30\/9\/2022",257775,162998],["31\/10\/2022",267299,172622],["30\/11\/2022",283228,184155],["31\/12\/2022",273106,178186],["31\/01\/2023",278528,189331],["28\/02\/2023",276133,184764],["31\/03\/2023",280708,184431],["30\/04\/2023",286842,187633],["31\/05\/2023",273162,183048],["30\/06\/2023",276574,186591],["31\/07\/2023",275676,191848],["31\/08\/2023",280600,190506],["30\/09\/2023",277206,185261],["31\/10\/2023",266335,178587],["30\/11\/2023",274905,187214],["31\/12\/2023",285202,200721],["31\/01\/2024",288595,202979],["29\/02\/2024",297902,204794],["31\/03\/2024",299110,211096],["30\/04\/2024",287330,204962]]

Total returns shown for the Australian Eagle Trust (ARSN 632 568 846) are net monthly returns calculated using exit prices after taking into account all of Australian Eagle Trust's ongoing fees as disclosed in the PDS and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance.

Most Recent Unit Price* SEE HISTORY

Buy
2.5327
Redeem
2.5175
Mid
2.5251

Total returns shown for the Australian Eagle Trust (ARSN 632 568 846) are net monthly returns calculated using exit prices after taking into account all of Australian Eagle Trust's ongoing fees as disclosed in the PDS and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance.

187.33%
Australian Eagle Trust Long Short Fund
104.96%
S&P 100 Accum. Index
82.37%
Out/Under Performance
  Australian Eagle Trust Long Short Fund S&P 100 Accum. Index Out/Under Performance
1 month -3.94% -2.91% -1.03%
3 months -0.44% 0.98% -1.42%
6 months 7.88% 14.77% -6.89%
12 months 0.17% 9.24% -9.07%
3 years (p.a) 9.00% 7.99% 1.01%
5 years (p.a) 11.54% 8.51% 3.03%
7 years (p.a.) 12.96% 8.22% 4.74%
Since inception 187.33% 104.96% 82.37%
Compound annual return 14.43% 9.60% 4.83% 

The Australian Eagle Trust Long Short Fund inception date is 01/07/2016. Total returns shown for the Australian Eagle Trust (ARSN 632 568 846) are net monthly returns calculated using exit prices after taking into account all of Australian Eagle Trust's ongoing fees as disclosed in the PDS and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance.

  Distribution per unit Reinvestment price
June 2022 4.5500 cents $2.1955
June 2021  1.5500 cents $2.1605
June 2020 1.7500 cents $1.7237
June 2019 5.7348 cents $1.6648
June 2018 7.232 cents $1.4812 

You should read the Product Disclosure Statement (PDS) before deciding to acquire the product.

The issuer of units in Australian Eagle Trust (ARSN 632 568 846) (Trust) is the Fund’s responsible entity The Trust Company (RE Services) Limited (ABN 45 003 278 831) (AFSL 235150), part of Perpetual Limited. Australian Eagle Asset Management Pty Limited (ABN 89 629 484 840) is the investment manager of the Trust. 

The Product Disclosure Statement (PDS) contains all of the details of the offer. Copies of the PDS and Target Market Definition (TMD) are available to download from this page.

An investment in the Trust must be through a valid paper or online application form accompanying the PDS. Before making any decision to make or hold any investment in the Trust you should consider the PDS and TMD in full.

This is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided and consider seeking advice from a financial advisor if necessary.

You should not base an investment decision simply on past performance. Past performance is not an indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. 

Investment Team

Founded in 2004, Australian Eagle’s team has been one of Australia’s best performing investment managers. Australian Eagle believes a portfolio of companies with sound growth characteristics, transformative possibilities, and a margin of safety, can deliver great outperformance over the long-term.

Australian Eagle’s team is led by Chief Investment Officer Sean Sequeira and Senior Portfolio Manager Alan Kwan. Sean is a founding member of Australian Eagle and was appointed Chief Investment Officer in 2016. Sean has more than 32 years industry experience and has worked at the company for 19 years. Alan has been with Australian Eagle for 13 years.

Meet our people

Sean Sequeira

Chief Investment Officer
Read Bio +

Alan Kwan

Senior Portfolio Manager
Read Bio +

HOW TO INVEST

After accessing the Product Disclosure Statement and reading in full the investment objectives and risks of investing in the Australian Eagle Trust:

1

Complete the online application form at Olivia 123 and ID verification online (approx. 10 minutes)

2

Submit the completed application form to the Administrator online

3

Transfer the funds and an investment confirmation will be issued by the Administrator

If you wish to make an additional investment (top-up) an existing investment in the Australian Eagle Trust Long Short Fund, please see the instructions here.

NOT READY TO INVEST YET?

Download the fund information pack or if you would prefer to talk it over, call David Buckland or Toby Roberts on 02 8046 5000 to discuss The Australian Eagle Trust in more detail.

Want to invest in your personal super instead?

Our partnership with industry-leading superannuation provider, netwealth, can help.

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Australian Eagle Trust Long Short Fund 2023 Financial Year Video

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In this 6-minute video Roger Montgomery, Found and Chairman was joined by Sean Sequeira, Chief Investment Officer at Australian Eagle Asset Management to discuss an overview of the year, how this has impacted the Australian Eagle Trust Long Short Fund's performance and his thoughts on the year ahead.

Have More Questions?

Frequently Asked Questions

  • 1. Is this Fund suitable for me? – Target Market Determination (TMD)

    The Australian Eagle Trust, Long-Short Fund is likely to be appropriate for a retail or wholesale client seeking capital growth to be used as a core or satellite component within a portfolio that has a medium or long investment timeframe, very high risk/return profile and needs daily access to capital. View the Target Market Determination here.

  • 2. What is the Fund’s investment objective?

    The Fund aims to provide capital growth over the longer term through a leveraged investment in Australian securities. Commensurate with this, the objective of the Fund is to outperform the S&P/ASX 100 Accumulation Index over a period of 5 years.

  • 3. Where does the Fund invest?

    Australian Eagle seeks to invest in superior quality stocks with a sensible risk buffer and hold those investments so that the longer-term advantages of those companies
    manifest in a superior rate of return. The investment process is designed to identify those stocks that have the most characteristics of a superior company, whilst also offering a valuation edge.

    On the short side, the Fund seeks to sell companies that do not display these characteristics or rank poorly on such characteristics compared to the superior companies and exhibit poorer technical characteristics.

    The process of finding companies is derived from a fundamental, bottom up-up research process, which has been consistently applied since its founding in 2004 for long only portfolios.

    The Fund typically invests in cash and cash equivalent instruments, Australian listed shares and other equity like securities. The Fund may invest in listed and unlisted derivatives such as futures, contracts for difference (‘CFDs’), options and swaps on ASX listed companies or indices. These instruments will primarily be used as a risk management tool.

  • 4. What is the minimum initial investment?

    The minimum investment in the Fund is $20,000.

  • 5. Can I make additional investments into the Fund?

    Additional investments of $5,000 or more can be made.  

  • 6. What are the Fund Fees?

    The management fee is 1.3868% p.a. (including recoverable expenses of 0.1568% p.a.) and the performance fee is equal to 20.5% (inclusive of GST) of the out-performance of the net asset value of the Fund during the performance period over the return of the benchmark (being the S&P/ASX 100 Accumulation Index).

  • 7. Where can I view the Fund’s unit price?

    Historic unit prices are available here.

  • 8. How can I see my unit balance and investment value online?

    There is an online portal that investors can access to see their balance and download all statements. You will need to register online with your details and investor number

    Access the client log in here
    Login

  • 9. How do I redeem funds?

    Investors may redeem all or part of their investments in the Fund by notifying the Administrator in writing. The minimum withdrawal is $5,000 and a $20,000 investment in the Fund must be maintained.

    A withdrawal request must be signed by the unit holder or their authorised signatories. The signed original of the request for withdrawal should be sent to the Administrator:

    Mainstream Fund Services Pty Ltd
    GPO Box 4968
    Sydney NSW 2000

    Withdrawal requests must be received by 12pm (noon) Sydney time for an application to receive the unit price calculated for the close of business of that day. Withdrawals will generally be paid within 7 Business Days after the Administrator receives a properly completed original withdrawal request and the relevant unit price has been finalised. Proceeds from withdrawals will be electronically credited to your bank account. Note that normal bank charges apply

Have another question?

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