|Fund Name||1851 Emerging Companies Fund|
|Trustee||The Trust Company (Re Services) Limited|
|Fund Administrator||Mainstream Fund Services|
|Investment Strategy||Long only, actively managed portfolio of small companies|
|Benchmark||S&P ASX Small Ordinaries Accumulation Index|
|Investment Objective||To deliver strong relative returns above the Benchmark*|
|Investment Timeframe||5-10 years|
|Who Can Invest||To invest in the Fund you need to be a “wholesale client” as defined by the Corporations Act. Subject to this, the Fund is available to all types of investors, including individuals, super funds and family trusts/companies, as well as professional investors and family offices.|
|Fees||Management fee: 1.25% (excl GST) of the Net Asset Value of the Fund.|
Performance fee: 20% (excl GST) of the total return of the fund in excess of the return of the Benchmark during a relevant performance period and provided any prior underperformance has been recovered.
|Applications/Redemptions||Monthly cut-off at 2pm on the last business day of the month. The minimum initial application that will be accepted is $100,000 (unless otherwise agreed by the Manager) with additional applications subject to a minimum of $25,000. Applications will be processed monthly. The minimum withdrawal request is $25,000.|
|Buy/Sell Spread||+/- 0.25%|
|Distribution Frequency||Any distributions will be paid on an annual basis. Distributions are generally reinvested in the Fund unless you instruct otherwise.|
|Cooling Off||There is no cooling-off right for investors. An Application Form cannot be withdrawn once it has been received.|
1851 Capital is the Investment Manager for the Fund.
The Investment Objective
We aim to deliver capital and income growth by investing in a diversified portfolio of emerging companies.
The Investment Philosophy
We believe the small-cap market provides the best opportunities to provide strong absolute performance for investors. Historically we have found that earnings and valuation are the two major drivers of share prices in the long term. A range of shorter-term factors can cause a company’s share price performance to deviate from its intrinsic value. The markets mispricing creates an investment opportunity.
The Investment Opportunity
The Fund is long only, meaning it will only buy securities in order to benefit from rising share prices. The Fund will generally hold a diversified portfolio of 30-80 stocks, predominately growth companies with a value overlay.
The Fund is benchmark unaware and aims to hold no more than 20% cash (on average) over the longer term. The fund will only invest in ASX listed securities and will not invest in unlisted or Pre-IPO companies. No short selling, gearing or hedging is used.
We believe this investment approach, coupled with a flexible mandate, will deliver our investors strong returns over the long-term.