Frequently Asked Questions

“What do you mean by ‘absolute return'?”

Absolute return or total return refers to the difference between hedge fund managers and traditional fund managers. Traditional fund managers aim to beat a benchmark such as a market index. So, for example, if the annual performance of a market is -20% and a manager's performance is -10%, they have achieved their goal. Which is fine, but the investor still loses money! Absolute return managers aim to achieve a positive performance , their objective is to make money for their investors regardless of the index.

“Why wouldn't I just invest in BT Total Return Fund?”

Retail investors are not accepted by the BT Total Return Fund. It is a wholesale investment vehicle that accepts only institutional money.

“Why does the Enterprise Total Return Fund invest with BT rather than directly with the underlying managers?”

BT has proven skills in selecting and managing the fund managers. This helps reduce risk.

“What about fees?”

In the order of 2.8% - but it depends on a number of factors. For explanation and illustration of the fees involved, several scenarios are depicted in the Product Disclosure Statement for the Enterprise Total Return Fund which you should read before investing in the fund.

“The fund is geared , what does that mean?”

Gearing or leverage can be an important investment tool ~ borrowing means larger amounts become available to generate returns (and conversely, magnify potential losses).
Generally we will borrow $1.00 for each $1.00 invested in application money, resulting in $2.00 being available for investment by the Fund.