Collins St Convertible Note Fund

The security of debt like down side and the potential for equity like upside, targetting a yield of 8% p.a paid quarterly.  Available to ‘wholesale’ or ‘sophisticated’ investors only.

Collins St Convertible Note Fund

This purpose of the Collins St Convertible Note Fund is to fundamentally preserve capital whilst also providing a bespoke risk / return profile which seeks to deliver superior and consistent yield outcomes over the short term and the potential for robust capital growth over the medium term.

In pursuing these outcomes, the Fund will invest exclusively into a concentrated portfolio of Convertible Notes that our Investment Team have negotiated directly with companies having gone through the same deep value research processes employed within our flagship Collins St Value Fund.


The intention is to pay 8% p.a (over medium term) in net quarterly distribution payments of 2% based on the opening value of the Fund with the potential for capital appreciation via our conversion rights with the underlying companies over time.

 

Why do we like Convertible Notes?

 

      Great risk reward proposition;

      Minimal downside (as compared to equity) and potential great upside with conversion rights;

      Stable & strong quarterly income;

      Usually first ranking security on underlying company with typical LVR’s of 20% or less*;

      Underlying companies/assets we are initially targeting have strong anti-inflationary properties, that is, they provide an inflation hedge;

      Binding agreements drafted by our lawyers, hence we get the terms we want; and

      Minimal competition from other Australian fund managers.

 

Please note we will be limiting the number of investors we accept, as we intend to only raise enough money to match deals that have been negotiated with companies.  For that reason only existing investors of the Collins St Value Fund are invited to participate in this opportunity.

 

For a short time Collins St Asset Management will, however, be reducing the minimum investment into the Collins St Value Fund to AUD$100,000 for those investors also wishing to invest into the Convertible Note Fund (either in the opening round or subsequent rounds should capacity be met in round one). 


We will also be conducting a LIVE investor presentation on Thursday the 28th of April at 10am (AEST). If you would like to attend, please pre-register via the following link:

REGISTER FOR WEBINAR

You can also access a brief overview of the Fund via the following fact sheet:

FUND FACT SHEET

 * Please review the IM for further details

Express your interest below

If you’d like to receive a copy of the Information Memorandum for the Collins St Convertible Note Fund, or should you wish to discuss any aspect of the application process or the Fund more broadly please enter your details below and we will respond to you shortly:

Insights

March 2022 Quarterly Report

March 2022 Quarterly Report

May 5, 2022
The March 2022 Quarterly Report discusses the importance of simplicity in investment analysis and decision making as well as some of the high conviction stock positions which lead to the +6.5% net returns for the March 2022 quarter, with a convertible note position taken in Astron (ATR.ASX) and a take-over arbitrage in Crown Resorts (CWN.ASX) as case studies.

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