Yarra Emerging Leaders Fund

Economists Are Idiots!

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101522-2023-03-22-03:19.pdf
FUND MANAGER Yarra Funds Management
ASX Code
INVESTMENT STYLE The Fund provides exposure to small and medium-sized ASX listed companies.
INVESTMENT PROFILE The Fund seeks to achieve medium to long term capital growth and to outperform the Benchmark over rolling three-year periods.
BENCHMARK Emerging Leaders Combined Benchmark, comprising S&P/ASX Midcap 50 Accumulation Index and S&P/ASX Small Ordinaries Accumulation Index
FUND SIZE Emerging Leaders Combined Benchmark, comprising S&P/ASX Midcap 50 Accumulation Index and S&P/ASX Small Ordinaries Accumulation Index
FEES 1.00% p.a. of the net asset value of the Fund



Benefits of investing in the Yarra Emerging Leaders Fund

Professional management

  • Access to a specialist investment team, with extensive experience in Australian equities, who actively manage the underlying investments.

Extensive resources

  • Dedicated full-time research resources, a rigorous investment process, sophisticated risk management techniques, advanced technology and advanced trading systems.

Buying strength and access to more investment opportunities

  • By investing in a managed fund you effectively pool your money with that of other investors. This means you can take advantage of the greater buying power and investment opportunities a large pool of money allows, even though you may have a comparatively small sum of money to invest.

Diversification of risk

  • Exposure to a professionally managed portfolio diversified by security, industry and sector. The underlying investments are actively managed to seek optimal risk/reward outcomes for the Fund.


  • The ability to generally invest in and redeem Units in the Fund on a daily basis.

Risk level


Investor suitability

The Fund may be suitable to investors that have a long term' investment time frame (i.e. a recommended minimum term of 5 to 7 years), who seek returns that are in line with the objective of the Fund and who have a risk tolerance in line with the Funds summary risk level.




Key Features

About the Fund

The Yarra Emerging Leaders Fund offers investors exposure to small and medium sized companies listed on the Australian Securities Exchange.

Applying Yarra's differentiated investment approach, the Fund seeks to unlock potential in the small and mid-cap universe. We aim to outperform the Emerging Leaders benchmark, which comprises 50% of the 50 Midcap Accumulation Index and 50% of the Small Ordinaries Accumulation Index, over rolling three-year periods.

The portfolio contains between 30 and 55 stocks listed on the Emerging Leaders benchmark, selected based on our fundamental, long-term and balanced investment approach.

A broader opportunity set

We believe having exposure to small and medium-sized ASX-listed companies offers superior liquidity and lower volatility and risk compared to a pure small cap investment approach.

Leveraging independent research

Our process of undertaking rigorous proprietary research is an invaluable advantage when focusing on the small to mid-sized end of the market, where we believe there is more hidden value to be captured.

A fundamental, long-term and balanced approach

Balance across investment styles and stock selection helps to deliver more consistent performance across market cycles. Our analysis avoids growth or value bias, uses multiple channels and focuses on opportunities across different time ranges.

Significant Investor Visa compliant

An investment in the Yarra Emerging Leaders Fund can be used as the balancing investment' component of a complying significant investment' for the purpose of applying for a significant investor visa.

Investment approach

As an independent and active manager of Australian share portfolios, we are committed to building trusted and long-term relationships with our clients through the delivery of strong and sustainable investment returns. Our philosophy is based on our belief that markets are competitive but not perfectly efficient. We believe that mispricing opportunities arise when the market's valuation (as depicted in the share price) doesn't reflect our views on a company's true value.

We have a large investment team, which helps ensure detailed analysis across the investment universe. By applying our fundamental and research-driven approach, we aim to identify and exploit market inefficiencies and add value through active management. We seek the best insights across a raft of industries and asset classes, collaborating daily across both the equities and fixed income markets.

Our disciplined investment framework is used to assess the competitive position of a company and its industry outlook, culminating in an assessment of valuation based on a combination of methodologies including discounted cash flow analysis, free cash flow yields and asset based valuations. We supplement our approach with external research to gauge consensus views and determine where our views may be differentiated. These inputs drive stock selection decisions; once securities have been selected for inclusion, we create a portfolio which best meets the Fund's investment objective through balanced portfolio construction that focuses on risk and reward.

Finally, our portfolios are monitored on a daily basis to ensure they contain the optimal blend of securities, seeking to deliver above average returns over the long term.


How we invest your money

The Fund, substantially through its investment in the Emerging Leaders Pooled Fund, invests as follows:

  • In securities which are listed on the Australian Securities Exchange, but are not included in the S&P/ASX 50 Leaders Index. Securities in companies that are elevated to the S&P/ASX 50 Leaders Index will be sold within 18 months.
  • Primarily invested in companies with a market capitalisation greater than $300 million.
  • Securities may be purchased in companies that move into the S&P/ASX 50 Leaders Index where the purchase is the take up of an allotment under a rights issue, and the Manager reasonably believes it is in the best interests of Unitholders to do so. Securities purchased in this manner may only be held for a period of 18 months from the time the relevant company was last elevated into the S&P/ASX 50 Leaders Index.
  • Minimum of 80% invested in securities.
  • Maximum of 20% invested in cash.
  • Generally, 30 to 55 securities held in the portfolio.
  • Where appropriate, financial derivatives will be used to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.
  • We aim to be fully invested in securities at all times.