Contact Australian Ex-50 Fund
Description
The Contact Australian Ex-50 Fund balances growth and income to provide access to a concentrated portfolio of quality Australian companies that sit outside the S&P/ASX 50 Index. This strategy seeks to find long term investments in tomorrow’s leaders. Derivatives, short selling and gearing will not be used. The strategy applies Contact’s long term focused investment philosophy.
Objective
Fund Information
| Target Return | Total Return of 10.0%pa (net of fees) |
| APIR code or ticker code | EVO4741AU |
| Investment Objective | The Fund’s investment objective is to seek to achieve strong relative returns in excess of the 10% Target Return, through a concentrated portfolio of high quality small to medium sized ASX listed companies. |
| Distribution Frequency | Semi-annually |
| Inception date | March 2020 |
| Management Fee | 0.60% per annum (excluding GST) of the net asset value of the Fund (after any current accrued Management Fees and expenses). |
| Performance Fee | Nil |
| Lonsec Rating | Investment Grade (Disclaimer) |
| Responsible Entity / Administrator | Evolution Trustees / Mainstream |
| Years managing the asset class | 20 |
| Assets managed in the sector | $1.7bn |
| Portfolio Managers | Will Culbert (Lead Portfolio Manager) Tom Millner |
| Size of Investment Team | 5 |
| Investment style | Quality / Income |
| Typical capitalisation bias | Mid Cap / Small Cap |
| Typical stock numbers | 20 – 40 |
| Stock limit | 10% in any one stock (soft limit) |
| Sector Limits | 30% (soft limit) |
| Expected turnover | Low |
| Cash range | 10% (soft limit) |
| Stocks in universe | 250 |
| Other restrictions | No gearing or short selling |
Why Invest?
Many Australian Equity investors hold a large allocation of their wealth in traditional Large-Cap companies. At the larger end of the market, and especially in the Top 20, the Index is heavily weighted towards financials which is largely made up of banks. For others there may be direct investments with the ability and access Micro-Cap, Private Equity, Venture Capital and Property opportunities. Many of these investments are unique, opportunistic and can be very rewarding. However, analysing and monitoring these investments can also be very time consuming.
Companies that sit outside the S&P/ASX50 Index are often ignored. However, it’s these companies who have a proven business model and are at the point in the business life cycle where revenue and earnings are often rising at a fast rate. An investment into the broad Small and Mid-Cap universe can provide a great opportunity for investors seeking sector diversification and additional growth.
The Contact Ex-50 Fund holds a majority of its portfolio in founder-led companies.
Founder-led companies are those whose founder holds a position of influence; CEO, Chairman, Board Member, Family Member or a substantial shareholder. Founder-led companies benefit from the long-term guidance of their founders. Executives who founded a firm often see it as their life’s work. Founders are highly motivated to think long-term and have invested a sizable portion of their life savings into their companies. They are aligned with those of their shareholders. Founders know much more about the company’s business. They have a clear idea of where they want to go, and they will guide the business in that direction. Many non-founder executives do not have the vision that a strong founder has.
Monthly Reports
Performance
| Performance to 31 July 2022 | 1 Month | 3 Months | 1 Year | 2 Years (p.a) # | Since Inception (p.a.) # |
| Contact Australian Ex-50 Fund | 6.6% | -9.3% | -12.5% | 3.8% | 9.0% |
| Targeted return of 10% per annum | 10.0% | 10.0% | 10.0% |
Performance is reported net of all fees and assumes reinvestment of distributions. Past performance is not a reliable indicator of future returns. # Inception date is 17 March 2020. Performance figures may be subject to rounding. Numbers greater than one year are annualised.
Research Reports and Ratings
| July 2021 | LONSEC - Investment Grade (Disclaimer) |
| July 2020 | LONSEC - Investment Grade (Disclaimer) |
Platform Availability
HUB24
NETWEALTH
MACQUARIE WRAP PLATFORM
Investor Forms
Invest now in the Contact Australian Ex-50 Fund
Read the Product Disclosure Statement (PDS)
Complete the Online Application Form