Yarra Capital Management has announced it has assumed management of the Karara Market Neutral Plus Fund after reaching an agreement with Karara Capital.
The fund has been rebranded as the Yarra Market Neutral Fund and Andrew Smith, who has run the strategy since its launch in August 2016, has also moved across to Yarra.
“Andrew is an accomplished investor with an outstanding track record, and we couldn’t be happier to welcome him,” said Yarra MD Edward Eason.
“We are similarly delighted to welcome new clients through the existing fund structure and are pleased to confirm no changes to the fund’s investment philosophy, process, fees or its investment objectives.”
Since inception, the market neutral fund has delivered returns of 9.93 per cent p.a. after fees, representing a net outperformance of 9.02 per cent over to its benchmark – the RBA cash rate.
Yarra confirmed that the Yarra Market Neutral Fund was now a registered management investment scheme and was open to all wholesale and retail investors in Australia.
The minimum investment has been reduced from $250,000 to $10,000 and the minimum additional investment amount has also been reduced from $25,000 to $1,000.
Furthermore, the fund now offers daily applications and redemptions to investors rather than monthly as was the case previously.
“This announcement also marks another important milestone for Yarra’s growth ambitions,” noted Mr Eason.
“The firm continues to add quality and breadth both to its investment capability and team, which now comprises approximately 85 people including investment personnel of 40 professionals with an average 19 years’ industry experience.”
The management fee of the Yarra Market Neutral Fund is 1.35 per cent p.a. of its net asset value with a performance fee of 20 per cent on the gross performance above the benchmark.
