Australian equities manager PM Capital has reached an agreement with Netwealth to include its Australian Companies Fund on the boutique platform.
The fund will sit alongside PM Capital’s Global Equities and Enhanced Yield funds on Netwealth’s Wrap and Super public menus.
PM Capital portfolio manager Uday Cheruvu said the Australian Companies Fund has a “handpicked” portfolio of between 15 and 25 companies.
“The fund gives access to a unique portfolio of Australian equities with the ability to also obtain a small proportion of global exposure powered by domestic and international market insights,” Mr Cheruvu said.
“This means that the fund provides opportunities in the Australian market significantly different to those provided by the index and more traditional benchmark aware Australian equity funds.
“The Australian equities market is highly concentrated, with more than half of the benchmark S&P/ASX200 Accumulation Index in banks and resource-related companies,” he said.
“This makes it extremely difficult for managers to add value over the long term when they have to hold stocks that they may not like in order to remain close to the index.
“However, for us, if we don’t like a stock, we don’t invest in it. Our exposure to sectors and stocks is determined solely by our conviction in the risk/reward opportunities that we identify within portfolio guidelines.”
