Talaria Global Equity Fund Complex ETF

The minimum investment amount is $5,000.   No minimum investment via Electronic Fund Transfer (EFT).

The Fund employs a high conviction, value-biased approach to construct a portfolio of high-quality, large-cap global companies outside of Australia. Its unique investment methodology integrates fundamental research with a fully backed put and call option implementation process to deliver diversified returns.

The strategy seeks to generate capital growth, interest and dividends, and options premium income, aiming for lower volatility and reduced downside risk compared to broader international equity markets. The result is a structurally lower-risk investment approach designed to grow investors' real wealth through a consistent return profile.

The Fund takes a high conviction, value biased approach to construct a portfolio of high quality, large cap companies from around the globe. Our unique investment methodology harnesses the benefits of consistent income generation and capital appreciation to grow investors’ real wealth.

Dual access via unlisted (APIR: AUS0035AU) or exchange traded units (Cboe: TLRA)

Invest via:

• All major investment platforms[cite_start]
• On market via our Active ETF (Cboe Ticker: TLRA)
• Online application or paper form

Investment objective

The Class invests in international equities (ex-Australia) and uses put and call options in order to provide investors with international equity returns with lower volatility and reduced downside risk compared to international equities markets.

The strategy seeks to provide investors with three diversified return streams of

1. Capital growth from equity investments
2. interest and dividends, and
3. options premium income.

The return that Talaria aims to deliver to investors is a statement of intent, and Talaria cannot guarantee that the Class will achieve this return.

The Class employs an integrated investment process which combines fundamental bottom up research and a fully backed put and call option implementation process to construct a high conviction, value biased actively managed portfolio of 20 - 45 international equities holdings (gained through holding direct securities and using put options) in mid to large cap companies listed in developed markets (as defined by the MSCI Market Classification Framework) excluding Australia.

The Class's investment strategy aims to produce investment returns through a combination of capital appreciation and income generation. Talaria, through its internationally experienced team, provides a unique and structurally lower-risk investment approach that combines capital growth and income generation to deliver a more consistent return profile.

Talaria generally aims to invest in securities it believes are trading below their intrinsic value. Based on its bottom-up research into their fundamentals and outlook Talaria expects them to increase in value over time. As such, a percentage of returns are expected to be produced from the Class's holdings appreciating in value.

The Class's implementation process involves selling put and call options to generate option premiums which add to the Class's return. The receipt of option premiums may also allow the Class to achieve a potential positive return even when markets are flat.

Put option sales are always fully cash backed and call option sales are always fully equity backed. As a result, the Class does not take on leverage from its use of options.

Using this options implementation process Talaria is able to sell put options to buy securities at a future date at lower than market prices. For selling these options, Talaria is paid a premium. On the maturity of the options, if the price of the security is at or above the strike price, Talaria does not acquire the security but keeps the premium. If the price of the security is below the strike price at maturity, Talaria acquires the security at the strike price. This means Talaria's effective acquisition cost is the strike price of the option, less the premium received.

Options can also be used to sell securities. Using call options Talaria is able to sell securities at a future date at higher than market prices. For selling these options, Talaria is paid a premium. On the maturity of the options, if the price of a security is at or below the strike price, Talaria does not sell the security but keeps the premium. If the price of the security is above the strike price at maturity, Talaria disposes of the securities at the strike price. This means Talaria's effective disposal cost is the strike price of the option, plus the premium received.

Talaria does not always use options to sell securities and may also sell securities directly.

The Class's investment universe consists of securities and options traded on regulated developed market stock exchanges as defined by MSCI Market Classification Framework, excluding Australia. The Class restricts exposure to any individual company to a maximum of 10% of the net assets of the Class. There are no individual country exposure limits. The Class may also hold cash in Australian dollars and foreign currencies. Cash used to back options may be held at the relevant overseas option clearing house in the relevant foreign currency. The Class does not intend to engage in short selling or enter securities lending arrangements.

Click here to view our Fund Performance.

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Talaria Global Equity Fund Complex ETF (“the Fund”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This webpage has been prepared by Talaria Asset Management (Talaria) to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Talaria, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.

Talaria Global Equity Fund Complex ETF’s Target Market Determination is available here. A Target Market Determination is a document which is required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.