DNR Capital Australian Emerging Companies Fund
About this Fund
|FUND MANAGER||DNR Capital|
|ASSET CLASS||AUSTRALIAN EQUITIES|
|INVESTMENT STYLE||Australian emerging companies and cash. Style neutral with a quality focus.|
|INVESTMENT PROFILE||The Fund's investment objective is to outperform the Benchmark (net of fees) over a rolling five -year period|
|BENCHMARK||S&P/ASX Small Ordinaries Total Return Index|
|FUND SIZE||S&P/ASX Small Ordinaries Total Return Index|
|NO. OF HOLDINGS||20-45|
|FEES||1.15% p.a. (inclusive of GST and RITC)|
Benefits of investing in the DNR Capital Australian Emerging Companies Fund
Investing in the Fund will give you access to the following features and benefits:
Investors seeking a medium-to-longer term investment focused on achieving growth, with less focus on generating excess income. The investor is prepared to accept higher volatility in pursuit of higher growth.
The DNR Capital Australian Emerging Companies Fund is designed for investors seeking a medium-to-longer term investment focused on achieving growth, with less focus on generating excess income. The investor is prepared to accept higher volatility in pursuit of higher growth.
DNR Capital believes a focus on quality will enhance returns when combined with a thorough valuation overlay. It seeks to identify good quality emerging businesses that are mispriced by overlaying DNR Capital's quality filter, referred to as the quality web', with a strong valuation discipline.
The DNR Capital Australian Emerging Companies Fund has an investment style best described as style neutral'. The security selection process has a strong bottom-up discipline and focuses on buying quality emerging businesses at reasonable prices. The process involves comprehensive company and industry research, company visits and meetings, and detailed valuation analysis and modelling. This information is used to assess the quality of a business, and the expected return.
Quality businesses are defined as being those with the following five attributes:
Where the security passes this quality assessment then a range of valuation methodologies are used to identify value having regard for the industry and circumstances of the business.
DNR Capital seeks to invest in businesses which offer upside to the target valuation in excess of its market forecast and sit within a defined portfolio construction framework.
Having identified securities with attractive quality and value characteristics, consideration is given to risk characteristics such as the security and sector correlations of investments.
The portfolio construction process is also influenced by a top-down economic appraisal. A range of economic indicators are reviewed regularly and these measures are used to formulate an economic overview which provides a backdrop to investment decision making and influences portfolio construction.
Investments held in the Fund are formally reviewed by the investment committee which meets monthly and is responsible for reviewing Fund performance, Fund constituents, the economic overview and internally generated reports.
While the ultimate decision rests with the investment team, the investment committee provides a mechanism of accountability.
The investment strategy of the Fund is intended to result in a concentrated portfolio that is high conviction and invests for the medium to long-term.
How we invest your money
Fund asset allocation
This provides only an indication of the intended investments of the Fund and these allocations may be exceeded or not reached from time to time. You may obtain information of the actual investment allocations of the Fund by contacting the Manager directly.
The Fund will not invest in derivatives.