Prime Value Growth Fund - Class B
About this Fund
|FUND MANAGER||Prime Value Asset Management|
|ASSET CLASS||AUSTRALIAN EQUITIES|
|INVESTMENT STYLE||The Fund is a portfolio of predominantly Australian equities listed on any recognised Australian Stock Exchange.|
|INVESTMENT PROFILE||The Fund aims to provide superior medium to long term capital growth, with some income.|
|BENCHMARK||S&P / ASX 300 Accumulation Index|
|FUND SIZE||S&P / ASX 300 Accumulation Index|
|NO. OF HOLDINGS||20-30|
Benefits of investing in the Prime Value Growth Fund - Class B
The Fund is designed for an investor seeking medium to long-term capital growth, who is prepared to accept some fluctuations in short-term returns. This type of investment may be appropriate as a significant part of a properly diversified investment portfolio for individuals, companies, trusts, superannuation funds and non-profit organisations.
The following are the four pillars of our investment philosophy:
We take our role as stewards earnestly and value our responsibility to investors - putting our clients first. Co-investing alongside our investors ensures a true alignment of interest.
Quality investing requires a balance between Art and Science
Prime Value enjoys the flexibility of being a style- neutral manager because it allows us to select stocks from across the ASX. This independent approach has delivered for over 14 years and means our process is not easily replicated.
When evaluating investment opportunities, we focus on good companies selling below intrinsic value. We judge stocks based on investment fundamentals while also taking into account macro economic data, corporate financial reports, industry data and comments from corporate officers to determine whether a stock is under or over-valued.
Prime Value believes all economic and financial tests require flexibility, depending on the phase in the economic cycle or the type of stock. There is no standard way of identifying winners or losers in the stock market. Experience and common sense dictate how the formula must be adapted to determine the appropriate investment decision for each security.
Analysis is the first step in investing; however interpretation and judgment are equally important.
Minimising mistakes is our number one imperative. We must remember investment decisions are based on market views and intelligence that is often faulty, and on research that is never complete and error-free. Managers therefore live and die on their own judgments. This may seem to be lacking the heroics of picking big winners, but in practice the Investment Manager who makes the fewest mistakes usually produces superior results. Our research efforts are focused as much on avoiding losers as identifying winners.
Benchmarks are inefficient
Benchmarks are a good way to get a feel for how well the market in general has performed, but they are not necessarily a good model for how to build a portfolio of stocks. At Prime Value, our main focus is on good companies selling below their intrinsic value regardless of their weighting in the benchmark or whether they are large, mid, small or micro cap stocks.
The ability to consider "all caps allows us opportunities often overlooked by major fund managers and stockbrokers. There are good reasons to look beyond the obvious. Stocks outside the ASX 100 are less influenced by trading and market factors and are more suited to detailed fundamental analysis as the basis for investment selections.
Our portfolios are constructed based on the expected return characteristics of the individual companies without reference to their size. We invest in a "market of stocks, free of benchmark constraints.
How we invest your money
The Fund will be comprised mainly of securities, primarily companies listed on an Australian stock exchange or due to be listed in the next 12 months.
The Fund invests in Australian equities and will normally have short term cash investments for liquidity management purposes and may have limited investment in fixed interest securities.
Portfolio construction centres around five key categories:
The Fund balances the risk and potential return of each security and each category with the absolute return objective of the portfolio. This results in a flexible and dynamic approach which adjusts according to the changing investment environment.