Southpeak Investment Management

Dear friends and investment partners,
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First and foremost, we hope you and your loved ones are safe and healthy in these perilous times. What seemed incomprehensible just a few weeks ago has become our new reality, a unifying enemy and with it, a focus on what is really important in life; friends, family, community and health.
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All of us at SouthPeak have been humbled and grateful for the outpouring of friendship and support from the many people we deal with on a daily basis, reinforcing our deep appreciation for each of you in our lives. As ever, please know the SouthPeak team stands ready for any contribution we can make to ensure the health and safety of our community and extended investment partners.
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While there is much debate on the trajectory of economic growth in the aftermath of the Corona crisis, there is no denying that March 2020 now belongs to the hallowed company of the Great Crashes of 1929 and 2008, both of which had a profound impact on societies, economies and markets across the world. There will be new opportunities and challenges ahead. The winners will not necessarily be the smartest or strongest investors; they will likely be those who can best adapt to these challenges and opportunities.
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Since SouthPeak's founding, we attribute our resolve as an organization to the loyal unity of our team, a commitment to our investment principles and the support we have from our various investment partners.
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One of our goals in these trying times is to arm each of our investors, institutions and intermediaries with information that should prove useful when discussing portfolio changes during upcoming Investment Committee meetings. We have worked to provide context, a current profile of the investment landscape and a prescient map that will continue to guide us steadily and ever forward.
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Every investor today is being charged with ensuring they have: a) liquidity and cash reserves; b) removed/trimmed positions that will continue to compromise capital preservation; and c) an allocation that can provide positive long term performance with predictability and downside protection.
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In this context, SouthPeak – a systematic, dynamic investment manager – can help. Utilizing differentiated investment strategies, SouthPeak can immediately bolt onto your existing portfolio to provide diversification, protection, consistent returns and better long-term compounding with lower drawdowns.
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In particular, with asset prices at elevated levels, bond yields at record lows (and no longer able to earn reasonable returns or effectively diversify portfolios) and whipsawing volatility in most assets, we believe it is important for an investment approach to be based on sound fundamentals, with a focus on simplicity, predictability and risk management. We put together a short video to share our thoughts on investing in this environment: insert link. We hope you find it helpful.
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SouthPeak's Smoother Equity strategy enables institutional and private investors to gain equity exposure with much less risk, harvesting alpha from market inefficiencies and investor biases to deliver a smoother return profile that takes advantage of strong compounding.
In the coming weeks, months and year, investors who fortify their portfolios defensively, cutting left tail risk but retaining upside potential will prevail. We are always available to discuss our investment approach so please get in touch with any questions or reach out to us if you would like a video or phone call. We look forward to discussing how our overall investment philosophy and our Smoother Equity approach can play an active and immediate role in your fiduciary management.

General

SouthPeak Investment Management Pty Limited (SouthPeak) like other companies operating in Australia, is bound by the Australian Privacy Principles set out in the Privacy Act. These regulations impose certain requirements on SouthPeak with respect to handling personal information. SouthPeak has implemented procedures to ensure that personal information is handled in accordance with the Act. SouthPeak has issued this policy in compliance with the Act.

Please read the following policy to understand how SouthPeak deals with the personal information that it may collect about you from time to time. This policy may change from time to time, so please revisit the policy periodically.

For the purpose of this policy and the Act “Personal Information” means information or an opinion (including information or an opinion forming part of a document or other source), whether true or not, and whether recorded in a material form or not, about a person whose identity is apparent, or can be reasonably ascertained, from the information or opinion.

Collection of Information

Collection of Information from You
SouthPeak collects and uses Personal Information for the purpose of carryingout its business and complying with laws and regulations that may require thecollection and disclosure of such information.

The personal information SouthPeak may collect include the following:

name
address
date of birth
email address
telephone number
tax file number
bank account details
country of tax residency
any other information that you have providedSouthPeak as a result of our dealings with you.

To assist SouthPeak in providing quality services, it is important that the information you entrust to us is complete, accurate and up-to-date.
You can help us to keep your information up to date by contacting us immediately if your contact details change.

We may also collect personal information if authorised or required by an Australian law or court or tribunal order to collect that information. We will tell you if collection is required or authorised by law and provide you with details of the law, court or tribunal order.

For example, when you make an application for a financial product SouthPeak is required under the Anti-Money Laundering and Counter-Terrorism Financing Act to collect certain information from you to prove your identity, such as your driver’s licence or passport details.

SouthPeak may collect your Australian tax file number (TFN). It is not compulsory to provide your TFN, but if you do not, SouthPeak may deduct withholding tax from your distribution payments at the highest marginal rate. SouthPeak will collect your TFN to determine whether you are subject to withholding tax on any distribution payments you receive and for communication purposes of distribution payments to the Australian Taxation Office. If SouthPeak collects your TFN, we will handle your TFN in accordance with the Privacy Act and Guidelines issued by the Commissioner.

SouthPeak may also be required to ask about your tax residency status under taxation information sharing agreements the Australian Government has in place with other countries. For example, a tax treaty between Australia and the United States formed under US law (Foreign Account Tax Compliance Act) requires SouthPeak to ask investors in our funds whether they are US citizens or US tax residents when they make an application. If you are a tax resident of another country, the relevant treaty or law may require us to collect your relevant foreign tax identification number.

Collection of Information from Third Parties
With your consent, SouthPeak may collect personal information from a third party or it may collect information from sources you would reasonably expect, for example, information extracted from publicly available sources such as public domain websites or telephone directories.

SouthPeak may also collect information about how you use our or other websites to help us better tailor our services to you. For example, SouthPeak may do this when you click on a link from the SouthPeak website or visit a website which displays a SouthPeak advertisement. Usually, the information we collect in this way is general information only derived from cookies – such as the number of visitors to a site or statistics about how a site is browsed – and does not identify you. If SouthPeak does identify you with this information (for example, if you have been logged onto an online SouthPeak service), any use or disclosure of that information will be in accordance with this Privacy Policy.

Collection of Sensitive Information

Collection of Sensitive Information from You Sensitive information is personal information about a person’s racial or ethnic origin, political opinion, membership of a political association, religious beliefs or affiliations, philosophical beliefs, membership of a professional or trade association, membership of a trade union, sexual orientation or practices, criminal record, genetic information or health information.
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SouthPeak will not collect, use or disclose sensitive information about you unless we need the information for one of our functions or activities and we have your consent (or we are legally required to do so).

Use and Disclosure of Personal Information

How we may use and disclose your personal information SouthPeak may use and disclose personal information we collect about you for several purposes including:

to consider your request for a product or service;
to enable SouthPeak to provide a product or service;
to tell you about other products and services that may be of interest to you;
to assist in arrangements with other organisations (such as loyalty partners) in relation to the promotion or provision of a product or service;
to manage accounts and perform other administrative and operational tasks (including risk management, systems development and testing, staff training and market or customer satisfaction research);
to consider any concerns or complaints you raise against SouthPeak and/or to manage any legal action between you and SouthPeak;
to prevent or investigate any actual or suspected fraud, unlawful activity or misconduct;
to identify you or establish your tax status under any Australian or foreign legislation, regulation or treaty pursuant to an agreement with any tax authority; and
as required by relevant laws, regulations, codes of practice and external payment systems.

If SouthPeak uses your personal information for direct marketing of its products or services, it will provide you with the opportunity, at the point of our first contact and at any time afterwards at your request to decline receipt of any further marketing information.Otherwise, SouthPeak will neither use nor disclose your Personal Information that is not related to the purpose for which we collected your information in the first place without your consent, unless:

It is required for public health or public safety or other emergency reasons; or
It is required to investigate or report suspected fraud or unlawful activity; or
It is required or authorised by law; or
SouthPeak believes that the use or disclosure is reasonably necessary for one or more of the following by or on behalf of an enforcement body:
- the prevention, detection, investigation, prosecution or punishment of criminal offences, breaches of a law imposing a penalty or sanction or breaches of a prescribed law;
- It is required to investigate or report suspected fraud or unlawful activity; or
- the enforcement of laws relating to the confiscation of the proceeds of crime;
- the prevention, detection, investigation or remedying of seriously improper conduct or prescribed conduct;
- the preparation for, or conduct of, proceedings before any court or tribunal, or implementation of the orders of a court or tribunal.

Disclosing your Personal Information Overseas

SouthPeak may need to disclose your personal information to organisations outside of Australia. These overseas organisations are service providers, including related entities, which perform a range of technology, operational and customer service functions on SouthPeak’s behalf. This includes offices associated with our fund administrator Apex Fund Services (Australia) Pty Ltd.

SouthPeak will not transfer personal information outside Australia unless SouthPeak reasonably believes that the recipient of the information is subject to a law, binding scheme or contract providing the same standards of protection of personal information as provided for under the Australian Privacy Principles.

Data Quality

SouthPeak will take reasonable steps to ensure that your personal information is accurate, complete and current. SouthPeak will take reasonable steps to destroy or permanently de-identify your personal information, if it is no longer needed for any purpose for which the information may be used or disclosed under the Use and Disclosure section of this policy.

Data Security

SouthPeak will protect your Personal Information from misuse and loss and from unauthorised access, modification or disclosure.

SouthPeak may store your personal information in hardcopy documents or electronically. SouthPeak maintains physical security, such as locks and security systems, over our paper and electronic data stores and premises.SouthPeak also maintains computer and network security. For example, SouthPeak uses firewalls (security measures for the internet) and other security measures such as identification codes and passwords to control access to computer systems. SouthPeak continually maintains and monitors its online security systems to ensure that SouthPeak’s online services are secure and that your personal information is appropriately protected when you use these services.

We require you to keep your personal identification number (PIN), passwords and access codes confidential and secure at all times. This means that you should not disclose your PIN, passwords or access codes to any other person. You should contact SouthPeak immediately if you believe that your PIN, passwords or access codes may have been disclosed to another person or if you would like to change your PIN or password.

Transparency

SouthPeak Privacy Policy is posted towww.southpeakim.com (the company’s website) from where an electronic copy (.pdf format) can be downloaded. A paper copy of the policy can be made available on request.

Access and Correction

If you wish to verify what information (if any) SouthPeak holds on you and/ or whether that information held is correct, you may either:
email invest@southpeakim.com
or
apply in writing to:
SouthPeak Investment Management Pty Limited
Suite 3201, 100 Miller Street
North Sydney NSW 2060
Australia
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SouthPeak will take reasonable steps to confirm the identity of the person making the request and will endeavour to respond within 14 business days of receiving the request. However, where the request is more complex or time consuming to comply with, SouthPeak will endeavour to provide access to the information requested within 28 business days.

SouthPeak reserves the right to deny access to personal information if providing access:

could pose a possible threat to life or health; or
could cause an unreasonable impact on the privacy of others; or
would be in response to a frivolous or vexatious request; or
relates to existing or anticipated legal proceedings which could be prejudiced as a result; or
relates to existing or anticipated commercial negotiations involving SouthPeak, and SouthPeak legitimate commercial interests could be prejudiced as a result; or
is in any way unlawful; or
would be likely to prejudice an investigation of possible unlawful activity; or
would circumvent a request to SouthPeak by an enforcement body performing a lawful security function to not provide access to the information because providing access would jeopardise national security; or
i. would likely prejudice:
(i) the prevention, detection, investigation, prosecution of criminal
offences, breaches of the law imposing a penalty or sanction or
breaches of prescribed law; or
(ii) the enforcement of laws relating to the confiscation of the proceeds of
crime; or
(iii) the protection of public revenue; or
(iv) the prevention, detection, investigation or remedying of seriously improper conduct or prescribed conduct; or
(v) the preparation for, or conduct of, proceedings before any court or tribunal, or implementation of its orders by or on behalf of an enforcement body.

However, where providing access would reveal evaluative information generated within the company in connection with a commercially sensitive decision-making process, SouthPeak may give the individual an explanation for the commercially sensitive decision rather than direct access to the information.

Where there is disagreement about direct access or where direct access to personal information is impractical or inappropriate, SouthPeak will discuss the possible use of a mutually acceptable intermediary.

If you advise SouthPeak that your personal information is held on you is inaccurate, incomplete or not up-to-date, SouthPeak will take reasonable steps to update the information accordingly. Should there be a disagreement betweenSouthPeak and you about whether the personal information is complete or up-to-date then at your request, SouthPeak will take reasonable steps to associate a statement from you that the information is not correct with the relevant record(s) held by SouthPeak.

SouthPeak reserves the right to levy a reasonable charge to meet the costs of providing access to personal information, although there will be no charge for lodging a request for access.

SouthPeak will provide reason(s) should it deny access to or correction of personal information it holds.

Identifiers

SouthPeak will not use an identifier assigned to an individual by a Government Agency or related body as its own identifier; nor will it provide such an identifier to a third party without the individuals consent, unless:

the use or disclosure is necessary forSouthPeak to fulfil its obligations to the Agency or related body; or
one or more of Use and Disclosure section numbered items 1-4 (inclusive) apply to the use or disclosure; or
the use or disclosure is by a prescribed organisation of a prescribed identifier in prescribed circumstances.

Anonymity

Wherever lawful and practical, SouthPeak will give you the option of not identifying yourself when dealing with the company.

Complaints

Wherever lawful and practical, SouthPeak will give you the option of not identifying yourself when dealing with company people who may potentially be subject of your complaint or where you may seek to complain about any aspect of SouthPeak's management of your personal information.
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You may either:
· email invest@southpeakim.com or
· apply in writing to:
SouthPeak Investment Management Pty Limited
Suite 3201, 100 Miller Street
North Sydney NSW 2060
Australia
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In both instances you must set out full details of the complaint. To helpSouthPeak complete a quick and effective investigation, the complainant should include as much detail as they have available to assist the SouthPeak PrivacyOfficer to identify the nature and scope of the complaint.
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The Privacy Officer will maintain a record of all complaints received, including but not limited to:

name and contact details of the complainant
date the complaint was received
nature of the complaint
details of the person(s) investigating the complaint
outcome of the investigations
dates and details of all contacts made with the complainant

Disclaimer

SouthPeak may revise this policy as it sees fit or at its discretion. Although SouthPeak intends to observe this policy at all times, neitherSouthPeak nor any of its entities nor its associated companies is legally bound in any respect by this policy. From time to time, SouthPeak reserves the right to act outside the policy and may do so, subject only to any statutory rights you have under the Act or other applicable legislation.

Who we are

Founded in 2010, SouthPeak is a specialist volatility manager with a capital preservation focus, managing dynamic option strategies to provide both income and protection.

Our team has extensive experience across a range of disciplines, markets and asset classes. We are based in Sydney, Australia.

Our goal

SouthPeak aims to provide investors with differentiated investment strategies to deliver attractive performance despite changing market dynamics and headwinds faced by traditional assets.

What we offer

Wholesale funds and tailored implementation mandates

real diversification fund (absolute return): aim to deliver consistent positive returns with strong resilience to large equity falls

enhanced equity hedge: aim to deliver above equity returns with much less risk

We believe

Future market conditions will be different from previous decades of falling interest rates, strong asset returns and negative bond/equity correlations. Economic growth will be slower due to high debt levels, sluggish productivity and aging demographics. This means past investment approaches, including traditional diversification sources, may not work well going forward.

Because of this, predictability and simplicity are paramount to generating consistent returns.

Supported by our strong track record, we believe that volatility strategies can be attractive for both income and protection, and are well suited to the potentially different economic environment ahead.

Our edge

We have a deep understanding of capital markets and derivatives markets in particular. This means we can discern supply and demand imbalances in markets that may lead to excess returns.

We use investment strategies that we believe are niche and differentiated. Our approach is dynamic, aiming to capture upside while protecting against downside.

We use a multi-layered risk management framework based on stress tests, concentration limits and a range of tail risk strategies.

We believe qualitative and quantitative aspects are equally important for solid, forward-looking risk management.

We’re intellectually inquisitive about changing market dynamics and the alpha opportunities these bring – and we’ve proven this approach since our founding in 2010.

Our people

Mattias Soderberg
Co-Chief Investment Officer, MSc BA (Linkoping), CFA charterholder
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Mattias has been managing volatility and other derivatives strategies at SouthPeak for more than a decade. Prior to this, Mattias worked in a range of roles across asset classes at top tier investment banks in Sydney and London. Mattias has a Masters of Science in Business Administration degree from the University of Linkoping and is a CFA charterholder.

Zac Roberts
Co-Chief Investment Officer, BEc (Kobe)
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Zac has been managing volatility and other derivatives strategies at SouthPeak for more than a decade. Zac’s previous experience focused on solutions in portfolio efficiency and risk management across equities, interest rates, credit, alternative assets, inflation and longevity, working in investment banking and actuarial consulting in Australia and Asia. Zac is a Monbusho Scholar and completed a Bachelor of Economics from Kobe University in Japanese.

Paul Sampson
‍Director
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Paul’s previous roles include CEO of AXA Japan, director of AXA Asia-Pacific and the National Mutual Life Association of Australasia, chairman of National Mutual Funds Management, NobleOak Life Limited, ACE Insurance Ltd and ACE Australia Holdings Pty Ltd.