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
| 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 (July 2020) (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?
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.