Collins St Value Fund achieved ~20% p.a. gross returns since Feb 2016 & No Fixed Management Fees

The Collins St Value Fund preserves and grows wealth for sophisticated/wholesale investors through a unique and highly successful benchmark unaware, high conviction Australian equities ‘value’ strategy that has delivered gross returns of ~20% p.a. since inception (February 2016) – nearly 7% higher than the index over the same period.

Currently ranked #1 out of a universe of 105 peers for the 12 month period to 31 October 2019* the Collins St Value Fund has a track record of generating positive monthly performance 78% of the time – a track record that also would have seen a starting investment of $250,000 nearly four years ago grow to over $417,000 today.

Available for eligible individual, SMSF, company, family trust and charity based investors, the Collins Street Value Fund is also unique in that it does not charge investors a fixed management fee – only when returns are above the 10 year Federal Government Bond rate (to ensure focus on capital preservation) and have surpassed their previous highs (to ensure focus on medium-long term growth in the unit price) will a performance fee apply.

Collins Street Value Fund  Investment Highlights

Opportunity

In a broader Australian equity market characterised by heightened volatility, falling EPS across most sectors, DPS reductions and chronic under-performance by most ‘active’ fund managers which has seen over 90% of Australian funds fail to beat the index over the last year, the Collins St Value Fund offers a bespoke and refreshing approach that puts investor interests front and centre.

Portfolio summary

The Fund is currently invested in just 16 stocks representing the Portfolio Manager’s best ideas across a selection of small-mid cap gold stocks, uranium companies, pharmaceutical positions, niche financial services operators and telecommunication names amongst others. The Collins St Value Fund also has the capacity to originate, negotiate and execute bespoke ‘special’ situation transactions such as convertible notes as well as hold a meaningful cash position in anticipation of opportunistic entry points across the market.

Performance

Strong performance track record. ~20% p.a. gross returns since inception in February 2016. As at the end of 31 October 2019 the Fund was ranked 1 out of 105 peers based on performance as measured by Morningstar ~20% higher than the nearest competitor, ~29% higher than the average fund in the same category and ~23% higher than the ASX index;

Positioning

The Fund focuses on preserving investor capital and medium to longer term growth in the underlying unit price. The Fund does not have a specific yield objective and, whilst distributions may be paid on an annual basis, the primary focus is the total return provided to investors. For this reason the Fund should be considered in the context of a broader, diversified portfolio of investments.

Distribution/Sales Model

The Collins St Value Fund is only available to sophisticated /wholesale investors and is not typically offered via intermediaries. As a boutique Fund that seeks to drive exceptional medium-long term investor outcomes, and with no fixed management fees, capacity will naturally be carefully managed in order to protect the interests of unitholders, thus creating a limited window of opportunity to participate in the future returns of the Fund.

Key clients

• Self-directed HNW investors;
• Family offices;
• Self- managed superannuation funds;
• Private companies; and Charities

Milestones

• A track record of ~20% p.a. gross performance over nearly four years – ~53% gross returns for the rolling 12 month period to 31 October 2019;
• Ranked #1 based on after-fee performance out of all large-cap Australian equity value funds in CY 2018*; and
• Ranked 1# out of 105 based on after-fee performance for the 12 month rolling period to 31 October 2019*

Competitive Advantage

• No fixed management fees – positive, absolute returns drive Portfolio Manager remuneration and ensures a tight focus on capital preservation, capacity management and performance;
• A benchmark unaware mandate that only sees the highest conviction stock / convertible note ideas implemented in the portfolio; and
• An experienced Portfolio Management team that invest into the same Fund, on the same standing as all other unit holders.

Strategy

An open ended, monthly priced unit trust that is available to wholesale / sophisticated investors with a minimum entry point of $250,000 AUD.