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

The Fund seeks to achieve strong relative returns in excess of the benchmark, through a concentrated portfolio of high quality small to medium sized ASX listed companies.

Fund Information

Fund Information

Benchmark	S&P/ASX Mid Cap 50 Accumulation Index
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 Benchmark, 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, but before any Performance Fee accrual for the relevant period).
Performance Fee	15% (excluding GST) of the total return of the Fund (after deduction of Management Fees and expenses) that is in excess of the return of the Benchmark during a relevant performance period (or part period where relevant), and provided any underperformance from previous periods has been recovered. No Performance Fee is payable for any period in which the total return of the Fund is less than the Benchmark return or the total return of the Fund is negative.
Lonsec Rating	Investment Grade (July 2020) (Disclaimer)
Responsible Entity / Administrator	Evolution Trustees / Mainstream
Years managing the asset class	17
Assets managed in the sector	$1.6bn
Portfolio Managers	Will Culbert (Lead Portfolio Manager) Tom Millner
Size of Investment Team	8
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 limit	No hard limits
Expected turnover	Low
Cash range	10% (soft limit)
Stocks in universe	250
Other restrictions	No gearing or short selling

Why Invest?

Why Invest?

There is greater opportunity for sector diversification in the Small and Mid Cap sectors. At the larger end of the market, the Index is heavily weighted towards financials which is largely made up of banks.

We believe a well diversified portfolio should hold a combination of large cap, mid-cap and small cap stocks as well as a blend of Value and Growth. Contact believes that small cap and mid cap companies are often at the point in their business life cycle where revenue and earnings are rising at a faster rate.

Investor Handbook

Performance and Reports

Performance

Performance to 28 February 2021	1 Month	3 Months	6 Months	1 Year	Since Inception #
Contact Australian Ex-50 Fund	-3.0%	-2.5%	3.1%	-	21.7%
S&P/ASX Midcap 50 Accumulation Index	-1.4%	0.8%	10.6%	-	52.6%
Relative Performance	-1.6%	-3.3%	-7.4%	-	-32.1%

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.