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IMPORTANT INFORMATION

Paragon Announcement - 30 August 2017

Paragon Funds Management, a boutique Australian Equity Long/Short specialist with over 4.5 years track record is today announcing changes to its senior management, investment team and ownership structure.

In order to establish an ongoing platform of growth, Paragon is pleased to announce that Hillier Deniz (previously Chief Financial Officer) will become Chief Executive Officer of Paragon. This promotion allows John Deniz, co-founder of Paragon, to dedicate his full capacity as Chief Investment Officer of the Paragon Australian Long Short Fund (Paragon Fund).

After significant consideration, Nick Reddaway, co-founder of Paragon, and co-fund manager of the Paragon Fund, has decided to leave Paragon effective 30 September, 2017. Ownership of Paragon will be retained by John Deniz and his team.

These changes will not have any impact on the Fund’s overall investment strategy or day to day operations of the Fund.

“While I am extremely proud of our achievements and strong performance for investors over the last 4.5 years, I have decided to pursue new opportunities outside of Paragon. I wish John and the team ongoing success,” commented Nick.

“I thank Nick for his contributions and wish him success in his future endeavours. I believe Paragon remains well positioned for growth with an exciting future ahead. I Iook forward to delivering on the Fund’s long-term investment objective for our investors,” concluded John.

For investor enquiries relating to these changes please contact us directly.


RG 240 Annual Disclosures for the year ended 30 June 2017 – July 2017

The following disclosures are provided in accordance with ASIC regulatory guide RG240 requirements, covering the financial year ended 30 June 2017.

Investment Strategy:
The Paragon Australian Long Short Fund is a concentrated long/short Australian equities product that is fundamentally driven with a focus on the industrials and resources sectors. The investment strategy has not changed in the financial year ended 30 June 2017.

On 8th December 2016, the Fund name was changed from Paragon Fund to Paragon Australian Long Short Fund. As communicated to investors at the time, this was purely to provide a more prescriptive name consistent with the strategy of the Fund, and not a change in strategy in any way.

Asset Allocation:
In accordance with the Fund’s investment strategy, asset classes invested in by the Fund over the course of the financial year were Australian Equities, with the balance in Cash.

The percentage of assets held by the Fund by class, at the close of 30 June 2017 was:

Australian Equities - 56%
Cash - 44%
Total - 100%.

On occasion, exchange traded derivatives were also invested in during the financial year, typically for hedging purposes, both against specific stock holdings as well as the portfolio overall. There were no derivatives held at 30 June 2017. The maximum exposure to derivatives at any point in time over the year, expressed as a percentage of the total portfolio, was 20%.

Asset allocation by class and industry sector are reported on a monthly basis in the monthly updates.

Liquidity:
In accordance with the Fund’s investment strategy, the Fund is invested in asset classes whereby it can reasonably be expected to realise at least 80% of its assets, at the value ascribed to those assets in calculating the Fund’s NAV, within 10 days at all times.

The liquidity profile of the Fund met this requirement at all times during the financial year ended 30 June 2017.

Based on the Fund’s closing position at 30 June 2017, 95% of its assets are capable of being realised within 10 business days.

Leverage:
Leveraging through securities lending is permitted and will be deployed in accordance with the Fund’s investment strategy. The maximum gross exposure limit set for the Fund taking into account leverage is 200% of the NAV of the Fund.

Leverage levels were well within this maximum limit over the financial year. Based on the Fund’s closing position at 30 June 2017, the Fund is long 84% and short 28%. The resultant gross exposure is 112%, and net exposure is 56%. The maximum gross exposure level reached in the last financial year was 134%.

Gross long and short and net exposure levels are reported on a monthly basis in the monthly updates.

The Fund did not enter into any other borrowings over the course of the financial year.

Key Service Providers:
Paragon Funds Management Ltd (Paragon) is the Responsible Entity of the Paragon Australian Long Short Fund and is also the Investment Manager of the Fund.

The investment team comprise of the two principals of Paragon, John Deniz and Nick Reddaway. There has been no change to the key management of Paragon nor the investment team of the Fund since inception of the Fund except for the appointment of David Livera as Head of Distribution in March.

There were no changes of key service providers in the financial year ended 30 June 2017.

The key external service providers of the Fund are:

  • Prime Broker and Custodian – UBS AG, Australia Branch & UBS Nominees Pty Ltd (UBS); and
  • Fund Administrator – Link Fund Solutions (formerly White Outsourcing Pty Ltd).

Both UBS and Link Fund Solutions are independent third party service providers and provide their services on an arms’ length commercial basis in accordance with legally binding contractual agreements.


Common Reporting Standard (CRS) will take effect on 1 July 2017 – June 2017

Under CRS, from 1 July 2017, Paragon will collect and report to the Australian Taxation Office (ATO) certain information on non-residents, similar to the information collected and reported under the FATCA regime with respect to U.S. citizens or taxpayers. The ATO will exchange this information with the participating foreign tax authorities of those non-residents. The ATO will at the same time receive financial account information on Australian residents from other countries’ tax authorities. The overall purpose of the CRS is to deter tax evasion.

Any non-resident investor, new or existing, approves the collection and reporting of such information as required under CRS. Further, by submitting an application form in the Fund from 1 July 2017, an investor authorises Paragon to obtain and report such information for CRS purposes, and acknowledges that Paragon may elect to reject an application if such information is not provided.

Any such information collected by Paragon will be handled in accordance with Paragon’s Privacy policy.


Fund Administrator name change - Link Fund Solutions (formerly White Outsourcing Pty Ltd) and contact details – June 2017

Our Fund Administrator for Paragon Australia Long Short Fund has changed its name to Link Fund Solutions, formerly White Outsourcing Pty Ltd, as part of the acquisition of White Outsourcing by the Link Group from the Steadfast Group in December 2016. The core team that undertake the Fund’s administration remain unchanged.

Link Fund Solutions is now located at:
Level 12, 680 George Street, Sydney NSW 2000

Postal Address (remains unchanged):
Link Fund Solutions - Unitholder Services
GPO Box 5482, Sydney NSW 2001

Contact details for Registry enquiries are:
Link Fund Solutions - Unitholder Services
Email: LFS_Registry@linkgroup.com
Phone: +61 2 9547 4311
Fax: +61 2 9221 1194

Please note that all references to White Outsourcing Pty Ltd or Fund Administrator in our latest PDS dated 1 January 2017 should be read as Link Fund Solutions.


Product Disclosure Statement Reissued - January 2017

Paragon has issued a new PDS for Paragon Australian Long Short Fund, dated 1 January 2017, replacing the previous PDS dated 27 April 2015.

Changes in the PDS have been made to ensure the full offer document is up to date, and more specifically to cover off the changes to the Fund as announced on the 2nd December 2016:

  1. Change to Daily Unit pricing and applications/withdrawals from 1st January 2017, along with further details on the eventual cessation of series based units. Refer to sections 1, 6 and 8;
  2. Reduction in capped expenses recovery fee from 0.5% to 0.25% p.a. Refer to sections 1 and 7; and
  3. Taxation disclosures updated for the adoption of AMIT regime. Refer to section 8.

In addition, Fees disclosures in section 7 have been revised for the requirements of ASIC Class Order 14/1252 detailed in RG 97 Disclosing fees and costs in PDSs and periodic statements (reissued November 2015). (Previously covered off by Paragon as an update on our website in January 2016).

This latest PDS and Application Form is available to download from our Fund page.

Applications are required to be submitted using the new Application Form dated 1 January 2017.

Applications received using the previous version will generally not be accepted after 31st January 2017. For the month of January, applications received on the previous form will be processed, however White Outsourcing will send through a request for confirmation that the latest PDS has been read, prior to acceptance of the application.


Adoption of AMIT Regime – December 2016

ASIC has recently granted relief to allow Paragon Funds Management Ltd (Paragon) and other responsible entities of registered managed investment schemes to make changes to their constitutions without obtaining approval from Unit Holders, where the changes are for the implementation of the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2015, the new tax regime for managed investment trusts referred to as the AMIT regime.

Paragon intends to rely on the ASIC relief to make changes to Paragon Fund's (Fund) constitution.

These changes to the constitution will allow Paragon to elect into the new AMIT regime. If Paragon elects into the AMIT regime, it will be permitted to, among other matters, change the way it distributes Fund income. At present, the Fund's net income is allocated to each Unit Holder annually based on their proportionate share of the Fund. This whole-of-fund approach results in the profits and losses of all classes of units being netted off to determine the Fund's overall taxable income which is, in turn, allocated and distributed each year, based on a Unit Holder's present entitlement.

Under the AMIT regime, Paragon will be able to, for income tax purposes, attribute amounts of taxable income, exempt income, non‑assessable non‑exempt income, tax offsets and credits to Unit Holders in accordance with their interests as set out in the constitution. This means that Paragon will, for example, be able to attribute amounts of income to one class of Unit Holders on a different basis to another class of Unit Holders, provided that the treatment is fair and reasonable.

Further, if Paragon notes a discrepancy between the amounts actually attributed to Unit Holders for an income year and the amounts that should have been attributed, Paragon will be able to reconcile the discrepancy by using the and overs allowance provisions in the regime.

ASIC has asked all responsible entities that intend to change their constitutions with respect to AMIT changes, to publish a prominent notice on their website explaining that they intend to change the constitution, and summarise the reasons for this and the effect of the changes. The notice must also state that the responsible entity will change the scheme's constitution in the way it has identified unless it receives a request to call and hold a meeting from Unit Holders with at least 5% of the votes that could be cast on a special resolution.

In order to satisfy ourselves that all Unit Holders are made aware of this change, Paragon has elected to send this notice by email to all Unit Holders.

Reasons for the change:

The purpose of the AMIT regime is to provide some flexibility when making distributions to Unit Holders. The current regime taxes Unit Holders on allocated tax amounts like discount capital gains, foreign sourced income, amounts that are subject to dividend, interest or royalty withholding tax and tax offsets and not necessarily on cash distributed or fund income. The new AMIT regime will allow Paragon to determine the way tax amounts are attributed to Unit Holders.

Paragon believes that it is in its Unit Holders' interest for the Fund to elect to apply the new AMIT regime because:

  • the new regime is clear and certain about the tax amounts allocated to Unit Holders, in contrast to the present entitlement regime;
  • allowing Paragon to reconcile unders and overs in the years in which they are discovered, as opposed to the existing law which requires Paragon to amend previous years' tax returns and notify Unit Holders of the amendments, if any, will help the Fund and Unit Holders to prepare their tax returns efficiently and reduce paperwork and revisiting old tax returns;
  • the deemed fixed trust status and Unit Holders being treated as having vested and indefeasible interests in the income and capital of the new regime throughout the income year will generally make it easier to satisfy:
    • the trust loss rules requirements for carrying forward trust losses;
    • the franking credit rules which allow Paragon distribute franking credits; and
    • eligibility for CGT scrip-for-scrip rollover relief.

This regime will also enable Paragon to develop different classes of Unit Holders with different rights within a single Fund and allow it to take into account the interests of investors, should Paragon determine it to be appropriate or advantageous to its investors to do so.

There will also be a fairer cost base adjustment for Unit Holders' interests, with both up and down adjustments, and the elimination of some of the uncertainties concerning the treatment of tax deferred distributions, if applicable.

Unit Holders will be advised prior to any actual changes made that are as a result of adopting the AMIT regime, and where the changes are material, Paragon will revise the Fund's product disclosure statement.

Opportunity to request a meeting:

Unit Holders were issued with a notice giving them an opportunity to request a meeting, otherwise Paragon will amend the constitution on the terms set out in the table below on or around the 14th December 2016.

The following table sets out the effect of the changes to the Paragon Fund constitution with reference to Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (and supporting legislation):


Constitution Clause
Effect of the Amendment

Clause 1.1
Definitions

Adds new definitions to include the new AMIT tax regime:

AMIT means the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (and supporting legislation).

Attribution has the meaning given by AMIT.

Clause 3.4
Classes of Units

This adds a clause to reflect that Paragon may elect to apply the Attribution regime under AMIT to particular Units or a Class of Units.

Clause 6.12
Determination of Income and Capital

This clause has been amended to make it subject to any decisions made by Paragon on the application of AMIT to Units or Classes of Units.

Clause 7.5
Withdrawals

This clause has been made subject to any decisions made by Paragon on the application of AMIT to Units or Classes of Units and consequent adjustments.

Clause 11.6
Present Entitlement

This clause has been made subject to any adjustments made as a result of AMIT.

Clause 12
AMIT

This clause provides that where has elected to apply AMIT, it may attribute income to Units or a Class of Units at its discretion in accordance with the requirements of the law and apply constitution so as to give effect to AMIT, making such adjustments as are necessary to:

  • adjust unit prices and fees and costs;
  • retain additional cash;
  • allocate taxable income;
  • determine where tax liabilities are to be allocated;
  • determine that income is capital; and
  • retain cash to meet any tax liabilities.

Clause 13
Powers of the Responsible Entity

This clause has been amended to allow Paragon to take such action as is necessary to give effect to AMIT including:

  • notifying the ATO of its election to treat Units or a Class of Units under AMIT;
  • making attributions to Unit Holders, provided such attributions do not affect the rights to the and capital of the Fund in such a way as to materially diminish their rights;
  • applying the treatment under AMIT where taxable income is over or under the amount notified to Unit Holders;
  • making adjustments to the cost base when the taxable distribution exceeds the cash distribution; and
  • issuing member statements with such revisions as are necessary.

Clause 15
Remuneration & Expenses

Clause 15 and the Expenses Schedule have been amended to allow Paragon to pay, on behalf of the Fund, any or all costs and expenses incurred in connection with applying AMIT to Units or a Class of Units in the Fund.


Name Change to Paragon Australian Long Short Fund – December 2016

Paragon has elected to change the name of the Fund to Paragon Australian Long Short Fund to make it more prescriptive and provide a clearer representation of the actual strategy of the Fund. Lodgement of change of name took effect on or around 2nd December 2016.

This will not change how the Fund is being managed in any way.

The name change has been reflected as an amendment to the constitution, as elected by the Responsible Entity, and does not require approval from Unit Holders.


Change from Monthly to Daily Pricing and Liquidity – December 2016

Paragon is pleased to announce that the Fund is moving from monthly to daily pricing and liquidity from 1 January 2017, and will be reflected in the PDS from this date.

As such, from next year, Unit prices of the Fund will be struck on a daily basis, and applications and redemptions will also be permitted daily.

Daily inflows and outflows from the Fund will not impact on the investment activities of the Fund. The Fund is managed within a level of liquidity that enables Paragon to make this change without any adverse impact on the Fund.

The constitution has been amended where relevant to permit this change and does not require approval from Unit Holder.


Reduction of MER fee to 0.25% pa capped – December 2016

Paragon is also pleased to announce that the Management Expense Recovery fee charged to the Fund will be reduced from 0.5% to 0.25% pa capped from 1 January 2017 and will be reflected in the PDS from this date.

Paragon is permitted to recover all usual fund expenditure incurred specifically for running the Fund. This is recovered by way of an expense recovery fee, which Paragon has elected to reduce to 0.25% pa.

It is important to remind Unit Holders that the rate charged can be changed at the discretion of the responsible entity, as disclosed in the latest PDS. Unit Holders will be given notice of any such changes.


Change of Address/Contact details in PDS – October 2016

Paragon Funds Management Ltd, the responsible entity and investment manager of the Paragon Fund, has a new registered and business address from the 3rd October 2016, as follows:

Office: Level 19, 80 Collins St, Melbourne VIC 3000

Phone: +61 3 9652 2500

Email (remains unchanged):

Contact Details in Paragon Fund Product Disclosure Statement:
Please note that all references to Paragon’s contact details in the current Product Disclosure Statement (PDS) for Paragon Fund dated 27 April 2015 are to be read as the above details from hereon.

The current PDS will be reissued by 1 January 2017 at which time contact details will also be updated.


RG 240 Annual Disclosures for the year ended 30 June 2016 – July 2016

The following disclosures are provided in accordance with ASIC regulatory guide RG240 requirements, covering the financial year ended 30 June 2016.

Investment Strategy:
The Paragon Fund is a concentrated long/short Australian equities product that is fundamentally driven with a focus on the industrials and resources sectors. The investment strategy has not changed in the financial year ended 30 June 2016.

Asset Allocation:
In accordance with the Fund’s investment strategy, asset classes invested in by the Fund over the course of the financial year were Australian Equities, with the balance in Cash.

The percentage of assets held by the Fund by class, at the close of 30 June 2016 was:

Australian Equities - 82%
Cash - 18%
Total - 100%.

On occasion, exchange traded derivatives were also invested in during the financial year, typically for hedging purposes, both against specific stock holdings as well as the portfolio overall. There were no derivatives held at 30 June 2016. The maximum exposure to derivatives at any point in time over the year, expressed as a percentage of the total portfolio, was 30%.

Asset allocation by class and industry sector are reported on a monthly basis in the monthly updates.

Liquidity:
In accordance with the Fund’s investment strategy, the Fund is invested in asset classes whereby it can reasonably be expected to realise at least 80% of its assets, at the value ascribed to those assets in calculating the Fund’s NAV, within 10 days at all times.

The liquidity profile of the Fund met this requirement at all times during the financial year ended 30 June 2016.

Based on the Fund’s closing position at 30 June 2016, 90% of its assets are capable of being realised within 10 business days.

Leverage:
Leveraging through securities lending is permitted and will be deployed in accordance with the

Fund’s investment strategy. The maximum gross exposure limit set for the Fund taking into account leverage is 200% of the NAV of the Fund.

Leverage levels were well within this maximum limit over the financial year. Based on the Fund’s closing position at 30 June 2016, the Fund is long 108% and short 26%. The resultant gross exposure is 134%, and net exposure is 82%.

Gross long and short and net exposure levels are reported on a monthly basis in the monthly updates.

The Fund did not enter into any other borrowings over the course of the financial year.

Key Service Providers:
Paragon Funds Management Ltd (Paragon) is the Responsible Entity of the Paragon Fund and is also the Investment Manager of the Fund.

The investment team comprise of the two principals of Paragon, John Deniz and Nick Reddaway.

There has been no change to the key management of Paragon nor the investment team of the Paragon Fund since inception of the Fund.

The key external service providers of the Fund are:

  • Prime Broker and Custodian – UBS AG, Australia Branch & UBS Nominees Pty Ltd (UBS); and
  • Fund Administrator – White Outsourcing Pty Ltd.

Both UBS and White Outsourcing Pty Ltd are independent third party service providers and provide their services on an arms’ length commercial basis in accordance with legally binding contractual agreements.

There were no changes to key service providers in the financial year ended 30 June 2016.

Derivative counterparties:
The Fund continues to use its Prime Broker as the sole counterparty to any derivative transactions.

No other derivative counterparties have been engaged by the Fund in the financial year ended 30 June 2016.

Summary of disclosures:
There have been no changes to the Fund’s investment strategy, risk profile or investment team since inception, and more specifically, during the financial year ended 30 June 2016.

Any material changes to the above disclosures over the course of the new financial year, will continue to be communicated to investors in monthly updates (as well as via our website), followed by an annual summary at the end of the financial year.

Any further questions on these disclosures should be directed to Paragon by email to


Application Form Update – January 2016

The Application Form attached to the PDS dated 27 April 2015 has been revised to facilitate collection of additional information as part of the new AML/CTF customer due diligence requirements arising from legislative changes effective 1 January 2016.

We encourage new investors to ensure they use the latest Application Form.

Applications received using the previous version of the form will be accepted for the month of January (subject to all other AML/CTF requirements being met), however, any additional information required will nevertheless be requested directly by White Outsourcing upon receipt of the older version application form (along with any other remaining documentation required) at the time of processing an application.

Applications from February 2016 onwards will not be accepted unless submitted using the latest Application Form.


Disclosure of indirect costs per ASIC Class Order 14/1252 – January 2016

ASIC Class Order 14/1252 requires the disclosure of indirect costs from 1 January 2016. The term ‘indirect costs’ means amounts incurred by Paragon (and not charged directly to members as fees) in the course of managing the fund which Paragon knows or reasonably ought to know, will directly or indirectly reduce the amount or value of the fund.

Paragon acknowledges the application of this class order by making the following disclosure: Paragon does not believe that there are any costs that will directly or indirectly reduce the amount or value of the Paragon Fund, other than the following:

  • Paragon is permitted to pass on abnormal and other expenses in addition to the capped expense recovery fee as stated on pages 3, 25 and 27 of the PDS. As disclosed on page 27, Paragon is currently passing on formation costs of $65k incurred in setting up the Fund.
  • The recovery is being spread over a 2 year period from April 2015, to ensure it has an immaterial impact on the monthly unit price for existing unit holders at any point in time. For an investor that holds units over this full two year period, Paragon estimates the total charge to be no greater than 0.003% in aggregate.


Independent Advisory Board Member Appointment, Tony Hodges – September 2015

Paragon is pleased to announce the appointment of Tony Hodges to its Advisory Board.

Tony will work with Paragon on a regular basis to complement the investment process, provide independent insights on markets, offer advice and expertise on strategic issues, as well as provide further networks to support the continued growth of the company and the Paragon Fund.

Tony has had over 35 years’ experience in the securities industry with a long record of creating and managing successful investment teams. He began his career in the AMP Investment Division in 1973 before moving to AMP’s merchant bank trading government securities. He then joined IOOF in 1985 as Head of Investments where he established and headed their Investment Division including a separate fixed income and equity team that managed some $4 billion in funds in 1990.

In 1999, these two investment teams became an integral component that led to the ultimate success of Perennial Investment Partners, one of Australia’s largest boutique asset managers, of which Tony was a founding director and shareholder. Tony was invited to join the Board of IOOF Holdings Ltd as an Executive Director, a position held from 2004-2009. He retired from his position of Chief Investment Officer of the IOOF Group in 2010. Tony continues his association with IOOF as Deputy Chairman of the IOOF Investment Policy Committee, which oversees the investment strategy, and management of some $8.2 billion of investment funds comprising the full spectrum of mainstream and alternative asset classes.

Tony has been involved with Securities Institute of Australia for 17+ years as a Principal Lecturer in Applied Portfolio Management Theory, Interest rate Markets and Risk Management. He also spent 10 years as a founding member of the Economics Savings and Tax Committee of IFSA (now Financial Services Council) and holds a Diploma in Financial Planning, and is a Fellow of AICD (Dip) and Senior Fellow of FINSIA.

Paragon believes Tony’s appointment will provide additional expertise to build on existing strengths and enhance long term growth opportunities. Over time Paragon will seek to grow the Advisory Board as required.


RG 240 Annual Disclosures for the year ended 30 June 2015 – July 2015

As reported in our June 2015 Monthly Update, the following disclosures are provided in accordance with ASIC regulatory guide RG240 requirements, covering the financial year ended 30 June 2015.

Investment Strategy:
The Paragon Fund is a concentrated long/short Australian equities product that is fundamentally driven with a focus on the industrials and resources sectors. The investment strategy has not changed in the financial year ended 30 June 2015.

Asset Allocation:
In accordance with the Fund’s investment strategy, asset classes invested in by the Fund over the course of the financial year were Australian Equities, with the balance in Cash.

The percentage of assets held by the Fund by class, at the close of 30 June 2015 was:

Australian Equities - 70%
Cash - 30%
Total - 100%.

On occasion, exchange traded derivatives were also invested in during the financial year, typically for hedging purposes, both against specific stock holdings as well as the portfolio overall. There were no derivatives held at 30 June 2015. The maximum exposure to derivatives at any point in time over the year, expressed as a percentage of the total portfolio, was 30%.

Asset allocation by class and industry sector are reported on a monthly basis in the monthly updates.

Liquidity:
In accordance with the Fund’s investment strategy, the Fund is invested in asset classes whereby it can reasonably be expected to realise at least 80% of its assets, at the value ascribed to those assets in calculating the Fund’s NAV, within 10 days at all times.

The liquidity profile of the Fund met this requirement at all times during the financial year ended 30 June 2015.

Based on the Fund’s closing position at 30 June 2015, 85% of its assets are capable of being realised within 10 business days.

Leverage:
Leveraging through securities lending is permitted and will be deployed in accordance with the Fund’s investment strategy. The maximum gross exposure limit set for the Fund taking into account leverage is 200% of the NAV of the Fund.

Leverage levels were well within this maximum limit over the financial year. Based on the Fund’s closing position at 30 June 2015, the Fund is long 103% and short 33%. The resultant gross leverage is 136%, and net exposure is 70%.

Gross long and short and net exposure levels are reported on a monthly basis in the monthly updates.

The Fund did not enter into any other borrowings over the course of the financial year.

Key Service Providers:
Paragon Funds Management Ltd (Paragon) is the Responsible Entity of the Paragon Fund and is also the Investment Manager of the Fund.

The investment team comprise of the two principals of Paragon, John Deniz and Nick Reddaway.

There has been no change to the key management of Paragon nor the investment team of the Paragon Fund since inception of the Fund.

The key external service providers of the Fund at 30 June 2015 are:

  • Prime Broker and Custodian – UBS AG, Australia Branch & UBS Nominees Pty Ltd (UBS), appointed on 21st April 2015, replacing Merrill Lynch International; and
  • Fund Administrator – White Outsourcing Pty Ltd.

Both UBS and White Outsourcing Pty Ltd are independent third party service providers and provide their services on an arms’ length commercial basis in accordance with legally binding contractual agreements.

The change in Prime Broker and Custodian was communicated to investors in our April monthly report. Further details relating to this changeover are available from our current PDS.

There were no other changes to key service providers in the financial year.

Derivative counterparties:
The Fund continues to use its Prime Broker as the sole counterparty to any derivative transactions. UBS AG, Australia Branch replaced Merrill Lynch International as the Fund’s Prime Broker in April 2015 as reported above.

No other derivative counterparties have been engaged by the Fund in the financial year ended 30 June 2015.

Summary of disclosures:
There have been no changes to the Fund’s investment strategy, risk profile or investment team since inception, and more specifically, during the financial year ended 30 June 2015.

Any material changes to the above disclosures over the course of the new financial year, will continue to be communicated to investors in monthly updates (as well as via our website), followed by an annual summary at the end of the financial year.

Any further questions on these disclosures can be directed to the Investment and/or Operations teams at Paragon.


Prime Broker and Custodian Update – April 2015

Paragon is pleased to advise the appointment of UBS AG, Australia Branch and UBS Nominees Pty Ltd (collectively to be referred to as UBS), as prime broker and custodian for Paragon Fund, replacing Merrill Lynch International.

This appointment is effective from 24th April 2015.

UBS is a market leader of prime brokerage services in Australia.


Product Disclosure Statement Reissued - April 2015

Paragon has issued a new PDS for Paragon Fund, dated 27 April 2015, updating all disclosures throughout the PDS as a direct result of the appointment of UBS as Prime Broker and Custodian (replacing Merrill Lynch International).

This latest PDS replaces the previous PDS dated 1 February 2014 and Supplementary PDS No 3 (SPDS) dated 31 October 2014 (by incorporating all additional disclosures previously reported in the SPDS).

This latest PDS and Application Form is available to download from our Paragon Fund page.

Applications are required to be submitted using the new Application Form dated 27 April 2015. Applications received using the previous form will generally not be accepted after 30th April 2015.


Product Disclosure Statement Update - October 2014

Paragon has issued Supplementary PDS No.3 (SPDS) for Paragon Fund, dated 31 October 2014, and must be read in conjunction with the original PDS dated 1 February 2014.

This SPDS replaces the previous SPDS dated 29 August 2014, and provides the following:

  • Details for indirect investors who are seeking to invest in Paragon Fund through an Investor Directed Portfolio Service (IDPS);
  • The basic features and nature of B Class Units, which are issued to IDPS operators investing on behalf of indirect investors. This class does not impact on direct retail and wholesale investors in any way;
  • Updated disclosure with respect to Foreign Account Tax Compliance Act (FATCA) and Paragon’s responsibility with respect to collecting and disclosing information on investors who are US citizens or residents for tax purposes; and
  • Differential fees disclosure.

There have been no changes made to the PDS dated 1 February 2014.


Product Disclosure Statement Update - August 2014

Paragon has issued Supplementary PDS No.2 (SPDS) for Paragon Fund, dated 29 August 2014, and must be read in conjunction with the original PDS dated 1 February 2014.

This SPDS replaces the previous SPDS dated 16 May 2014, and provides the following:

  • Details for indirect investors who are seeking to invest in Paragon Fund through an Investor Directed Portfolio Service (IDPS);
  • The basic features and nature of B Class Units, which are issued to IDPS operators investing on behalf of indirect investors. This class does not impact on direct retail and wholesale investors in any way; and
  • Updated disclosure with respect to Foreign Account Tax Compliance Act (FATCA) and Paragon’s responsibility with respect to collecting and disclosing information on investors who are US citizens or residents for tax purposes.

There have been no changes made to the PDS dated 1 February 2014.


Application Form Update – August 2014

The Application Form attached to the PDS dated 1 February 2014 has been revised to facilitate collection of information for FATCA purposes, as outlined in the SPDS issued on 29 August 2014.

We encourage new investors to ensure they use the latest Application Form.

Applications received using the previous version of the form will be accepted (subject to all other AML_CTF requirements being met) however, investors will be required to complete a FATCA self-certification form in addition. This will be requested directly from White Outsourcing upon receipt of the older version application form, along with any other remaining documentation required at the time of processing an application.


Constitution Update – August 2014

A Supplementary Deed for Paragon Fund dated 29 August 2014 was issued and lodged with ASIC on this same date, taking effect immediately. The deed covers amendments to clauses of the Fund’s Constitution dated 6 December 2012 as well as additional clauses with respect to the issue and nature of B Class Units.

Effective from 1 August 2014, IDPS operators investing in the Fund on behalf of indirect investors will be issued units under a separate class (B Class). This class will be non-series based. Roll up mechanisms will not apply to this class and the High Watermark will be the same for all units issued in this class. As stated in the SPDS dated 29 August 2014, B Class Units are issued to IDPS operators only, as defined in the SPDS.

This is entirely at the discretion of the responsible entity.

The basic features and nature of B Class Units is outlined in the SPDS dated 29 August 2014. Direct retail and wholesale investors remain in their current class (A Class). All rights and obligations of direct retail and wholesale investors remain unchanged.

A copy of the Supplementary Deed may be obtained from Paragon upon request.


Product Disclosure Statement Update - May 2014

Paragon has issued a supplementary PDS for Paragon Fund, dated 16th May 2014, and must be read in conjunction with the original PDS dated 1st February 2014.

This supplementary PDS provides relevant details for indirect investors who are seeking to invest in Paragon Fund through an Investor Directed Portfolio Service (IDPS). There have been no changes made to the original PDS dated 1st February 2014.


Product Disclosure Statement Update - February 2014

Paragon has issued a new PDS for Paragon Fund, dated 1st February 2014, which incorporates benchmark and disclosure principles as required by ASIC Regulatory Guide 240 Hedge funds: Improving Disclosure.

Other key changes to the PDS relate to the cut off dates and frequency of applications and withdrawals. Refer to sections 1 and 6 of the current PDS for further details.

This latest PDS and Application Form is available to download from our Paragon Fund page.

Applications are required to be submitted using the new Application Form available at the back of the latest PDS. Applications received using the previous form will not be accepted after 28th February 2014.

Financial Reports

The Annual and Half Year Financial Reports for the Fund are available via the links below:

Paragon Fund Half Year Report Dec 2016
(Year ended 31 December 2016)

Paragon Fund Annual Report June 2016
(Year ended 30 June 2016)

Paragon Fund Half Year Report Dec 2015
(Period ended 31 December 2015)

Paragon Fund Annual Report June 2015
(Year ended 30 June 2015)

Paragon Fund Half Year Report Dec 2014
(Period ended 31 December 2014)

Paragon Fund Annual Report June 2014
(Year ended 30 June 2014)

Paragon Fund Annual Report June 2013
(Period ended 30 June 2013)