Armytage Strategic Opportunities Wholesale Fund

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101474-2022-03-09-17:11.pdf
FUND MANAGER Armytage Private
ASX Code
INVESTMENT STYLE The Fund is a portfolio of micro, small and large-capitalisation investments that Armytage considers to be of high quality and good value.
INVESTMENT PROFILE The Fund aims to provide a higher level of yield (2.5% above) than the Benchmark, while matching or beating the total return of the index over the medium term.
BENCHMARK S&P/ASX All Ordinaries Index
FUND SIZE S&P/ASX All Ordinaries Index
FEES 1.78% p.a. of the NAV of the Fund



Benefits of investing in the Armytage Strategic Opportunities Wholesale Fund

The Fund is managed with a view to offering investors long-term capital growth potential and a semi-annual income stream, from a portfolio of micro, small and large-capitalisation investments that Armytage considers to be of high quality and good value.

A major feature differentiating Armytage's investment style from other investment managers is Armytage's philosophy of taking advantage of strategic or special opportunity investments. As part of its investment process, Armytage seeks to identify listed companies which are being discounted by the market, but still retain an asset (tangible or otherwise) which in Armytage's view, is of significant value to one or more third parties.

Another major differentiation is the use of Exchange Traded Options (ETOs) under a non-leveraged Buy-Write, Sell-Put strategy. Exchange Traded Options are a part of Armytage's active investment strategy for the Fund. These securities are designed to help increase the yield of the portfolio, assist to reduce market volatility and along with dividend income, provide a stable platform for semi-annual distribution payments to investors.

Risk level


Investor suitability

The Fund in designed for investors who seek an exposure in Australian equities that is able to generate income and capital growth from a mix of strategic opportunities identified.




Key Features

About the Fund

The Fund is managed with a view to offering investors long-term capital growth potential and a regular semi-annual income stream, from a portfolio of investments drawn from the All Ordinaries Accumulation Index.

Similar to the Equity Income Fund (ASX100 Only), The fund uses exchange-traded options to enhance the yield on the underlying physical investments through a Buy/Write and Sell/Put strategy. Options are not used for gearing or protection purposes and the Fund is never more than 100% exposed to the market.

In addition to the above, the fund has the ability to invest in the mid cap and small cap sectors of the Australian market when the manager sees significant value in doing so.

About Armytage Private Pty Limited

Armytage Private Pty Ltd ("Armytage) has an experienced investment team that has been assembled from a variety of Australian and international financial services fields predominantly in funds management, share-broking, superannuation and wealth management. Armytage has managed various mandates in Australian securities for a broad range of wholesale investors. Since Armytage's inception it has focused on Australian listed securities (including Exchange Traded Options) and domestic cash. Armytage has managed various mandates in Australian securities for a broad range of wholesale investors. At the date of the PDS Armytage manages in excess of 30 pooled funds and discrete investment mandates.

Armytage has an Investment Committee which comprises experienced investment and financial services professionals. The role of the Investment Committee is to make asset allocation and investment decisions in accordance with investment mandates, review research material and monitor the Fund's investment portfolio and performance.

The Investment Team has 8 core members with over 200 years combined experience in the industry. The Investment Team meets regularly to discuss the stocks in the Investment Universe with the analyst for each sector providing an update on key information in relation to their stocks and the review of any new Investment Theses and financial models. Each analyst also provides periodic updates on their confidence levels in the views on each stock included in the portfolio. These meetings also discuss the economic and thematic matters impacting the stocks in the portfolio.

For more information on Armytage, including funds under management please visit their website www.armytage.com.au.


How we invest your money

Armytage's Value based investment style incorporates a bottom-up proprietary business valuation investment approach supplemented by top-down thematic overlays to identify the highest quality alpha opportunities in its investment universe. This approach allows Armytage to construct a portfolio of stocks providing relative-value over the investment time horizon.

Consistent with Armytage's business valuation approach, Armytage seeks to invest in businesses that have a clear and understandable business model, preferably have a history of generating profits, paying dividends and have forecast able future profits and cash flows. In this regard, Armytage tends to avoid investing in higher risk early stage companies that are research and development or exploration based.

The total portfolio will be continually reviewed in order to assess whether the Fund's objectives are being met.

Asset allocation

As a guideline, the Fund is intended to hold a minimum of 10 different securities, with no more than 20% of the Fund's assets invested in a single security. The Fund's main investments will be in the following asset classes:

  • securities listed on the Australian Stock Exchange ("ASX) or Newcastle Stock Exchange ("NSX);
  • cash (and cash equivalents such as other investment grade interest-bearing securities);
  • derivatives, in the circumstances described below; and
  • hybrid securities listed on the ASX.

The assets of the Fund may also be invested in unlisted securities if Armytage reasonably expects that those securities will be quoted on the ASX within 12 months. Please note that securities which Armytage expects to be quoted on the ASX may not be granted official quotation by the ASX, as listing and quotation are within the ASX's complete discretion.

Armytage may use options (Exchange-Traded Options) and other derivatives to gain exposure to certain securities or to enhance both returns and income on the underlying physical investments. Armytage will not use derivatives for the purpose of gearing the Fund.

The asset classes described above have different performance, volatility and risk characteristics. Accordingly, Armytage has adopted the broad asset allocation range set out in the table below. These ranges and targets are guidelines only and Armytage reserves the right to hold investments outside them in appropriate circumstances.


(Target / Range)

  • Australian securities: 70% / 30-100%
  • Hybrid securities: 10% / 0-25%
  • Cash (other): 20% / 0-50%