Yarra Ex-20 Australian Equities Fund

Economists Are Idiots!

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101523-2023-03-22-03:19.pdf
FUND MANAGER Yarra Funds Management
ASX Code
INVESTMENT STYLE The Fund provides exposure to Australian Securities Exchange listed securities excluding the largest 20 by market capitalisation (as defined by S&P/ASX 20 Index).
INVESTMENT PROFILE The Fund seeks to achieve medium-to-long term capital growth and to outperform the over rolling three-year periods.
BENCHMARK S&P/ASX 300 ex S&P/ASX 20 Accumulation Index
FUND SIZE S&P/ASX 300 ex S&P/ASX 20 Accumulation Index
FEES 0.90% p.a. of the net asset value of the Fund



Benefits of investing in the Yarra Ex-20 Australian Equities 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 Ex-20 Australian Equities Fund provides investors with access to a diverse, balanced investment universe with lower stock and sector concentration.

The Fund seeks superior returns, providing investors with access to a diverse and balanced portfolio offering strong growth potential over the medium to long-term.

In excluding the largest 20 stocks on the Australian Securities Exchange by market capitalisation (ASX20'), the Fund aims to outperform the S&P/ASX 300 ex S&P/ASX 20 Accumulation Index over rolling three-year periods. The portfolio typically holds between 15 - 30 stocks, providing investors with a concentrated portfolio built around stock-specific insights.

A diverse, balanced opportunity set

There is a significant concentration of Banking and Resources companies amongst the largest 20 stocks on the Australian Securities Exchange. By excluding these companies, a focused portfolio of 15 - 30 high-quality businesses provides a diverse, balanced investment universe with lower stock and sector concentration.

Harnessing more opportunities

The large investment universe enables access to a substantial number of large, mid and small-cap companies.

A fundamental approach which is well suited to Ex-20 investing

Our active and bottom-up investment approach is well suited to Ex-20 investing, where stock prices do not always accurately reflect their underlying valuation or risk profile.

Opportunities are identified through fundamental, bottom-up analysis, a balance of investment styles and from insights gathered from more than 1,600 meetings held each year.

Significant Investor Visa compliant

An investment in the Yarra Ex-20 Australian Equities 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 Ex-20 Australian Equities Pooled Fund, invests as follows:

  • In securities which are listed or to be listed on the Australian Securities Exchange (excluding securities in the S&P/ASX 20 Index) with a bias towards those within the S&P/ASX 300 ex S&P/ASX 20 Index. Investments in securities that are elevated to the S&P/ASX 20 Index will be sold within 18 months.
  • With a minimum of 80% in securities.
  • With a maximum of 20% in cash.
  • Generally, 15 to 30 securities are 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.