OC Dynamic Equity Fund
About this Fund
|FUND MANAGER||OC Funds Management|
|ASSET CLASS||AUSTRALIAN EQUITIES|
|INVESTMENT STYLE||The Fund invests in securities listed on the Australian Securities Exchange (ASX), outside the S&P/ ASX 100 Index.|
|INVESTMENT PROFILE||The Fund aims to return 10-15% over rolling five-year periods.|
|BENCHMARK||S&P/ASX Small Ordinaries Accumulation Index|
|FUND SIZE||S&P/ASX Small Ordinaries Accumulation Index|
|NO. OF HOLDINGS||30-50|
Benefits of investing in the OC Dynamic Equity Fund
About the Fund
The OC Dynamic Equity Fund is a long-only, benchmark-unaware managed investment scheme with a target investment universe of securities listed on the Australian Securities Exchange (ASX), outside the S&P/ ASX 100 Index.
The Fund aims to provide investors with strong long-term returns through investment in high quality small-to- medium-sized companies with sustainable business models and attractive investment fundamentals.
The Fund combines the Core Fundamental investment strategy of the OC Premium Small Companies Fund with the objective of adding further value through investing in select Emerging Leaders and event driven Alpha Plus positions.
Key features of the Fund include:
How we invest your money
The Fund's investment universe includes all companies listed or about to be listed on the ASX regardless of their size or business sector. Despite the broad investment universe, we focus on small businesses (ex ASX 100) believing they are easier to understand, simpler to value and more accessible to research. We look to invest in simple businesses we can understand, with a history of profits and dividends, and that offer a predictable future earnings stream that we are able to value. Access to key management and earnings transparency is critical.
The Fund invests up to 20% of total capital in a combination of smaller ($100m - $400m market capitalisation) emerging leaders businesses and/or by holding catalyst-driven positives.
Cash isn't allocated strategically, rather it is a result of the investment process, with the cash balances simply being the residual after the investments have been purchased or sold.
Strategic asset allocation
The Fund typically invests within the following guidelines:
While our equity investments are predominantly in smaller companies, from time to time, we may invest in stocks within the S&P/ASX 100 Index as long as we feel they are consistent with our investment strategy.