Fortress Caribbean Pension Fund

The Fortress Caribbean Pension Fund was the fourth mutual fund launched by Fortress Fund Managers and commenced operations in September 2003.

Objective and Fund Details

Who should invest in this fund?

The Fortress Caribbean Pension Fund is exclusively for the investment of contributions from companies’ Barbados-based registered pension plans.
Employees from participating companies can choose from three classes of shares – Aggressive Accumulator (AA), Conservative Consolidator (CC), and Capital Secure (CS). Each of these share classes invests in different proportions of equities, fixed income and real estate assets to meet a particular lifestyle investment objective.

‘AA’ Shares – Aggressive Accumulator – The investment objective is to achieve growth and capital appreciation of assets over the long term, to protect against inflation risks.
‘CC’ Shares – Conservative Consolidator – The investment objective is still to achieve growth and capital appreciation, but the need is for preservation of capital and reduced volatility. Hence the reduced exposure to equities.
‘CS’ Shares – Capital Secure – The investment objective is to achieve the highest possible return compatible with the preservation of capital in the short term. Hence the heavier weighting towards fixed income securities.

What does this fund invest in?

The Fund pursues capital growth, income and security over the long term, as appropriate to each class of share. It can be described as a “fund of funds” as it is specially structured to invest in equities, fixed income, and real estate assets primarily via the other Fortress mutual funds.

Fund Strategy

Pension investing is a long-term project with a time horizon typically measured in decades rather than months or even years. The Fund therefore seeks to gain diversified exposure to well-valued, long-term assets to generate returns over many years. The three classes of shares spread their assets across equities, bonds and equities primarily via the Fortress mutual funds. In these funds the underlying investment process is value-oriented, investing consistently in high-quality assets at reasonable prices.

At the end of every month a valuation of the market value of the investments held, and a net asset value (NAV) per share is calculated and published on our website.

What happens when a company invests in this fund?

Fortress Fund Managers can perform the role of the record-keeper on behalf of the plan administrator (normally the company). The pension contributions are invested through our independent custodian, in accordance with the share class selected by respective plan members and recorded in their own unitised investment account.
By offering different share classes to pension plan members, the Fund caters to the needs of all employees, recognising that newer employees with many years to retirement have very different needs, risk and investment objectives from those who are about to retire.
At the end of every month a valuation of the market value of the investments held, and a net asset value (NAV) per share is calculated and published on our website.

What can plan members expect?

Pension plan members may switch between share classes up to once a year at no cost.

The Fund provides online quarterly and annual reports to investors, detailing performance and the summarising portfolio positioning and outlook.

Individual statements reflecting the number of shares held and the net asset value per share are available to shareholders on an annual basis.

At retirement, members must withdraw the value of their account and either purchase a fixed rate annuity or transfer the plan savings to an income drawdown policy, like the INNOVA Lifestage Income Plan.

How much does it cost a company to invest in this fund?

Fees and Expenses paid by the Fund. Quoted returns are net of these fees.
0.50% per annum of net assets at the Fund level
Fees from the underlying Fortress funds in which the Fund invests are capped at between 0.25% and 0.50% per annum of net assets, depending on the Fund.
0.03% per annum on the net asset value of the Fund
$2,000 per annum on the first $5M – $15M
$7,500 per annum on assets > $50M
Initial Fee: Nil
Redemption Fee: Nil


Important information about this fund is contained in our prospectus which we encourage you to read before making an investment. The indicated returns are net of all fees and expenses. The returns are historical and are not necessarily indicative of future performance. Investors should be aware that this is an equity fund and as such there are risks involved where the value of the Fund’s shares may go down as well as up.