Lowell Resources Fund

About this Fund

Fund Detail

FUND MANAGER Lowell Resources Funds Management
INVESTMENT STYLE LRT invests in shares and other financial products issued by resources companies listed on Australia and overseas stock exchanges.
INVESTMENT PROFILE LRT aims to maximize absolute returns to Unitholders over the medium to long-term, along with annual distribution payments.
FEES 2.1645% p.a. of the Total Gross Investments up to $50m plus 1.652% p.a. of the Total Gross Investments exceeding $50m



Benefits of investing in LRT

Investment Expertise

The Fund aims to provide unitholders with exposure to the low-capitalisation mining and energy sectors, and provide above-average absolute returns to the unit holders. The Portfolio is managed by an experienced Investment Committee comprising David Hobday and John Forwood, supported by the Directors of the Investment Manager.

Annual Distributions

The Fund's investment objective is to maximise absolute returns to its unitholders over the medium to longer term, along with annual distribution payments contingent on the Fund generating a taxable profit for the term. Because the Fund's primary objective is capital growth from investment in a select group of junior mining and energy companies, performance cannot be readily referenced to a widely available benchmark or market index. The junior resource sector tends to be highly volatile, which from time to time enables the Investment Manager to sell down overpriced stocks to lock in capital gains, most of which are intended to be distributed to unitholders, on an annual basis.

Distribution Re-investment Plan

Unitholders can have their distributions automatically re-invested into additional Units of the Fund. Investors applying for Units as part of the Initial Offer will be automatically included for participation in the distribution reinvestment plan unless they opt out by notifying the Responsible Entity that they wish to have their distributions paid into an Australian dollar bank account of the investor's choice. Information on the distribution reinvestment plan will be made available to investors on www.cremornecapital.com.

Trading on the ASX market

An application has been made to the ASX to quote the Units on the ASX market. This means that Unitholders can buy and sell Units on the ASX market through a stockbroker or share trading account. Investors will also be able to see the prices at which other investors are prepared to exchange Units. Settlement of Units traded on the ASX market will occur via the CHESS settlement service.

Tracking your investment

The Responsible Entity will calculate the Fund's Net Asset Value (NAV) per Unit on a weekly basis, after close of market. The Fund's NAV will be published to the ASX in accordance with the Listing Rules, and uploaded on the Responsible Entity's website.

Holding Statements

Holders will receive a holding statement showing the number of Units that they own. Holders will receive an updated holding statement upon the occurrence of any changes to their holding.

Regular Reporting

In addition to the information provided by the regular reporting set out in Section 4.8, the Investment Manager may produce investment reports, which will be lodged with the ASX and sent to Unitholders. All reports will also be available at www.cremornecapital.com.




Key Features

About the Fund

Lowell Resources Fund ("the Fund") is a unit trust that is focused on investing in shares and other financial products issued by resources companies listed on Australia and overseas stock exchanges.

The Fund is a specialist Managed Investment Fund that focuses its stock selection on junior resource companies that:

  • have achieved significant exploration success;
  • have established a potentially commercial resource base; and
  • are considered to have a good probability of building on that initial success and moving into production.

Highly selective investment in the junior resource sector requires patient and informed research. In general this focus on small, emerging companies may involve higher risk and longer time frame than investing in the major resource companies, but may produce superior returns over the longer term if stock selection proves to be favourable.

The Investment Manager has engaged a group of resources industry professionals with the requisite experience and knowledge to guide the Fund in the implementation of its investment strategy. 

The investment objectives of the Fund are to maximize absolute returns to Unitholders over the medium to long-term, along with annual distribution payment contingent on taxable profits generated over the term.


How we invest your money

The Investment Manager employs a top-down investment strategy, with an ultimate focus on optimising the stock selection process to achieve maximum performance.

Commodity weighting is an important process, whereby bullish commodity sectors are identified and ranked, while the less promising sectors are downgraded. The Investment Manager then considers the individual stocks within those weighted sectors, based on their fundamentals, chart patterns and pricing, and identifies entry positions and potential exit strategies for each stock. This requires a combination of economic and technical analysis, along with continued monitoring of investor sentiment.

Risk management and preservation of capital is an important consideration. The Fund's Portfolio will, out of necessity, be strongly biased towards the high-risk end of the spectrum, while avoiding the most speculative blue-sky exploration companies.

The Investment Manager has adopted a strategy of minimising downside risk through early identification and disposal of potential loss-makers, while maintaining or adding to winning positions. Increased cash holdings reduce portfolio volatility during uncertain times of impending market weakness.

Depending on market conditions, the Portfolio usually comprises around 20-40 junior mining & energy companies that are actively exploring for, developing, and/or producing specific commodities (e.g. gold, oil, copper) and that have strong fundamentals and are expected to outperform, whilst maintaining a modest exposure to a more diverse range of minerals at lower points in the commodity price cycle.

Commodity price trends are not always clearcut, therefore sector weightings are subject to frequent adjustment by the Investment Manager. Companies in the Portfolio provide a mix of Australian and international resource projects in Africa, the Americas, Europe and Asia, but most are listed on the ASX.