CALL 1300 419 42               enquiries@harvestlaneam.com.au

WHY HARVEST LANE

Put simply, we care about our investors.
We believe that’s the way it should be.

ABOUT

Led by Luke Cummings, Rod Harper and Andrew Salvestrin, investors benefit from an investment team with almost 50 years of collective industry experience. More importantly, we have a unique view of investment returns and how to achieve them. Our primary focus is to protect, and ensure we make the most of our investors’ wealth. Harvest Lane Asset Management’s ability to produce positive returns, in difficult prevailing market conditions,

has been of valuable benefit to our investors. Our staff have a significant portion of their own money invested in Harvest Lane Asset Management funds as do our family members and many of our friends. Clearly then, our own interests are inextricably linked to those of our investors. For this reason, you can be assured we’ll manage your money just as carefully as we do our own, and that of those we know, and are close to.

PERFORMANCE SUMMARY

Absolute Return Fund as at 31 May 2017 | Inception date: 1 July 2013

1 Month 3 Months Financial Year to Date 1 Year Annualised Return (since inception p.a)
Absolute Return Fund - Net Return 4.10% 2.73% 2.62% 2.62% 9.97%
Benchmark (RBA Cash Rate) 0.13% 0.38% 1.63% 1.63% 2.24%
Excess 3.97% 2.35% 0.99% 0.99% 7.73%

* Past performance is no indication of future performance. Investments may rise and fall in value and returns cannot be guaranteed. Returns are based on the mid-point of unit prices and are net of all fees and charges. Unless otherwise stated, all figures are in Australian dollars and include GST.

STRATEGY

We believe that to make money in the market you must look where others are not. Experience tells us that the market is not always efficient.

Markets can and do mis-price securities, be it because of market psychology or just because the majority of investors do not understand the fundamental drivers behind a particular situation. Understanding not only the legal processes that affect the corporate actions space but also the events (good and bad) that can affect our edge is something we have spent a considerable amount of time and resources refining.

Our strategy involves looking for opportunities where we believe there is a very good chance of superior returns relative to the risk in the trade. We enter trades that we believe have a high probability of success. By selecting only those trades where we believe the potential reward far outweighs the risk, we aim to generate consistent returns that are largely uncorrelated to the broader market.

Uniquely, Harvest Lane Asset Management is paid solely based on performance via a performance fee. The Fund’s management fee is set just high enough to cover external Fund expenses only, such as trustee, admin and custody costs. This is adjusted so there is no excess retained by us, so if we don’t perform we don’t get paid. This model reduces the conflict of interest that we believe most fund managers are subject to, whereby the provision of a management fee encourages the accumulation of funds under management at the expense of investment performance. By investing in the Harvest Lane Absolute Return Fund you can be assured that will never be the case. Our interests are wholly aligned with those of our investors. We believe that’s the way it should be.

FAQ

As an independent fund manager, wholly-owned by our staff, we manage your money to create wealth. We endeavour to achieve absolute rather than relative returns, do not benchmark against an index, and are only fully invested when the opportunity is strong enough to warrant it. We focus only on situations where we believe there is potential to generate outsized returns relative to the risks incurred.

Additionally, we are paid only through our performance fee. It’s a highly unusual arrangement in the investment business (in fact almost unheard of). However we can’t think of a better way to align our interests with those of our investors. Simply put, we do not make money unless our investors do; and we believe that’s the way it should be.

Procrastination is not a successful investment strategy. It is generally better to invest sooner rather than later so that you have more time to allow compounding to work for you over time.

At Harvest Lane Asset Management, we use our expertise, and considerable experience to optimise the timing of entering and exiting the market with a clients’ funds.

In general, when conditions are favourable, we will fully or partly commit to an investment opportunity. And when it’s better not to, we hold back. Our performance however, is not tied to that of the market; it is entirely possible we will achieve the most favourable returns when the market is performing poorly.

Harvest Lane Asset Management (formerly 789 Asset Management) was founded in 2012. Key staff members have accumulated almost 50 years in the industry. Our investment strategy has been developed from this experience, and we can now offer the benefits of our deep knowledge to our clients.

We are primarily focussed on generating superior risk-adjusted returns.

We could categorise our approach as ‘pragmatic opportunism’.

We don’t rely on any particular method (deep value, growth, etc.) but rather we are use a flexible approach to pursue value-producing opportunities for our clients.

Utilising a blend of analytical techniques, including fundamental analysis and behavioral finance we can identify promising opportunities where we believe the profit pay-off exceeds the risk incurred in taking the position.

To the extent that our aim is to generate a positive return for our investors at all times irrespective of the performance of the broader share market then yes, we could rightly be considered to be a hedge fund.

This is not to suggest that we don’t have market exposure from time to time; however, any such exposure will be via investments that do not exhibit strong correlation with the broader market, and/or that are partially or fully hedged.

On the contrary, because we’re smaller, size can work to our advantage. It’s the reason investors should seriously consider us.

Unlike large institutions, we’re not constrained by staff size, bureaucracy, and layers of management. We are noted for efficient decision-making processes and the care with which we look after our investors, and their assets. By limiting funds, we have under management, we can be flexible and move rapidly, when larger firms may not have the ability to do so.

As well, a situation we find attractive can sometimes be too small to interest larger players in the market. Often this means we’re able to take advantage of an opportunity where there is less competition from other, larger firms.

Our investment model, although advantageous to many other clients, has been designed with SMSFs specifically in mind. As such we aim for consistent and stable returns with an absolute focus on limiting downside risk at all times.

Investing in our fund is as easy as reviewing our PDS and completing the accompanying application form. Both the online application and downloadable PDF are accessible by clicking here.

Please feel free to call us directly if you have any questions or else you may email us at: enquiries@harvestlaneam.com.au