Large Manager Commitment
Investing our capital alongside your own further aligns our interest. If there were a better place to invest, we would. This large financial commitment solidified our partnership with our investors.
0% Fixed Management Fees
We are a purely performance based fee structure fund, only charging performance fees once we have outperformed the market, and only calculated on the return. If the investor doesn’t get a guaranteed return, then neither should we.
ASX/200 Benchmark
Benchmarking our fund against the ASX/200 keeps us accountable. We do not take any fees unless we outperform the ASX/200.
An Exclusive Invitation
Our investment team is currently offering exclusive access to the Caltha Equity Fund. Our fundamental research-intensive investment strategy has delivered our fund a 13.34% p.a return net of fees since its inception.
Caltha presents an opportunity to invest in a high-conviction Australian equity fund with unmatched manager alignment.
15.58%
Net of Fees
Financial Year ’23
1.1588
Unit Price
31st March 2024
5
Current Holdings
31st March 2024
7.86%
Cash Holding
31st March 2024
Returns Since Inception
| Returns | 3 Months | 1 Year | FY ’23 | Since Inception (p.a) |
| Caltha Equity Fund | 4.41% | 12.45% | 15.58% | 13.34% |
| ASX200 Price Index | 4.03% | 10.02% | 9.67% | 11.56% |
| Out-performance | 0.38% | 2.43% | 5.91% | 1.78% |
For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favourable business developments.
– Warren Buffett
Strategy
A Tried & Tested Strategy, Executed Flawlessly
Our fundamental objective as investment fund managers is to generate alpha returns, a goal we approach with a commitment to precision and professional diligence. Our strategy centres on curating a portfolio of 5 – 15 high-conviction investments within the ASX200, identified through a research-intensive fundamental bottom-up analysis and due diligence.
Our selection criteria focus on companies that have demonstrated profitability over the past five years and possess a market capitalisation of at least one billion ensuring a blend of stability and potential for growth. We seek out companies that are currently experiencing non-fundamentally changing transitory events that lead to a temporary misalignment between its market price and its true underlying intrinsic value. Such instances are perceived by us as golden opportunities to acquire fundamentally robust and promising companies, at reduced valuations.
Designed to outperform the S&P/ASX200 over rolling five-year periods, we adopt the mindset of long-term business owners rather than short term traders, this strategy underscores our dedication to long-term value creation. While the fund does not impose lock-in periods or redemption fees, we encourage investors to engage with a long-term perspective, ideally mirroring the fund’s five-year strategic horizon.
It’s crucial to remember that past performance is not indicative of future results. Our disciplined approach and rigorous selection criteria are aimed at positioning the fund for sustained success, aligning with our investors’ aspirations for superior investment outcomes.
How is Caltha incentivised to outperform the market?
Caltha is incentivised to outperform the market in 2 ways:
1. We only charge a 15% performance fee once we have outperformed the ASX/200. If we do not outperform the ASX200, we do not charge a fee.
2. Our managers have a large, personal commitment to the fund with significant investment within the fund alongside our investors. Other funds may be content to charge fees regardless of performance, but we believe in placing our own financial well-being on the line. We do this as a sign of our dedication to you as an investor and our faith in our proven strategy.
- Fund Details
- Investment Details
- Performance
- Fees
| Investment Objective | Out-perform the S&P/ASX200 over rolling 5-year periods, with capital preservation and growth a priority. | |
| Fund Manager | Caltha Capital Pty Ltd | |
| Minimum Suggested Time Frame | 5 Years or Longer | |
| Asset Class | Australian Shares, Long Only | |
| Benchmark | S&P/ASX200 | |
| Borrowing Limit | Maximum of 25% Net Trust Value | |
| Concentration Limit | Maximum of 50% Net Trust Value in any one holding | |
| Distribution Policy | Half-Yearly |
| Who Can Invest | Wholesale Clients By Invitation Only |
| Minimum Initial Investment | $500,000 |
| Minimum Additional Investment | $100,000 |
| Lock-In Period | No Lock-In Period |
| Minimum Suggested Time Frame | 5 Years or longer |
| Fund Returns | 15.58% FY 2023 net of fees, excluding franking credits |
| S&P/ASX200 | 9.67% FY 2023 |
| Alpha Delivered | 5.91% FY 2023 |
| Annual Distributions | 3.78% FY 2023 |
| Buy / Sell Spread | 0.20% / 0.20% |
| Entry Fee | 0.00 |
| Exit Fee | 0.00 |
| Management Fee | 0.00 |
| Performance Fee | 15.00% |
| Buy / Sell Spread | 0.20% / 0.20% |
Investment Process
A Research-Intensive Process Built Around Delivering Alpha
The Caltha Equity Fund uses an investment universe selection funnel to build a fund watch list of undervalued ASX-listed equities. These equities have a market cap of at least $1 billion, world-dependent products or services, and a strong future of prosperity. By eliminating companies that do not fit into our investment universe early, we can efficiently maintain our efforts on potential investment ideas.
Intensive research is performed around all areas of the company and sector before an investment is made. We perform deep dives into the company’s reports, focusing on balance sheets, modelling discounted cashflow projections for a future 5 years, and understanding the management team’s capabilities and strengths, sector conditions, and competitors.
Over the life of our investments, Caltha is continuously researching the companies and sectors we are involved in at an individual and macro level, keeping an active eye on our investment thesis, competitor advancements, and exit pricing.
Fees
Alignment Of Interest
Caltha Equity Fund is an opportunity with unmatched manager alignment. A performance fee-only model for the fund aligns our interests directly with yours whilst keeping costs low for greater returns.
As the single largest investor in the Caltha Equity Fund, our managers are entirely dedicated to the success of the fund. If we do not provide greater value than an index or the fund does not make returns, then we don’t charge a fee. Our interests are aligned with our investors, as we are only eligible to take a fee if we deliver the value we promised.
We firmly believe that any investment fund manager should be a key investor in their own portfolio. After all, if they are not prepared to risk their own money, then why should you risk yours? At Caltha Capital, we have complete faith in our ability to meet our goals, and we put our wealth on the line to prove it. This large investment in the fund provides us with income to continue running the fund during periods of lower-than-expected returns where fees may not be eligible.
Legal Counsel
Fund Administrator
Auditor
Prime Broker
Trust
Safety And Security First
Caltha Capital has made significant efforts to minimise the risks associated with fund administration, unit pricing, fee and return calculation, legal and regulatory compliance, and tax requirements by appointing and coordinating with third-party tier-one service providers.
These third-party global leaders in fund administration, legal advisory, and auditing provide our investors confidence. You can trust that our Equity Fund is being monitored and overlooked by reputable people and trustworthy companies.
Each of these respected advisors is in place to ensure that the Caltha Equity Fund meets or exceeds regulatory and best practice requirements where applicable.
Who calculates fees and unit pricing?
Fees and unit pricing are calculated by a reputable third-party independent managed fund administration firm, William Buck.
Is the fund audited by a third party each year?
Yes, the fund is audited by a third-party auditing service each year.
Does the fund distribute income?
Yes, the fund distributes income half-yearly, if opted to by the investor. Otherwise, the income will be reinvested in the fund and corresponding units will be issued to the investor.
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Daniel Sutherland
Fund Manager
Daniel Sutherland is the Chief Executive Officer and Fund Manager at Caltha Capital, bringing over 10 years of investment industry experience to his leadership role.
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