The Prime Value small cap funds were the only small cap fund to be upgraded to a Highly Recommended rating this year.
In its report, Zenith said: “Zenith has high regard for Prime Value’s investment personnel, with our conviction in the Fund underpinned by the consistent application of the investment process. As such, we believe the Fund is well placed to continue delivering upon its investment objectives.”
Richard Ivers and Mike Younger, Prime Value Emerging Opportunities Fund Co-Portfolio Managers (Class A and Class B) believe that equity markets are inefficient due to the short-term approach used by many market participants. To maximise these opportunities, Prime Value adopts a long-term approach to investing, undertakes an extensive company meeting program, and incorporates both thematic and fundamental analysis into its research process.
The investment team look beyond short-term market movements and seek quality companies with more predictable earnings. Additionally, the portfolio is structured so that investments with lower risk are larger weightings in the fund which leads to lower volatility and more consistent returns. A consistent adherence to our rigorous investment process means that the fund offers the attractive return profile of small caps but with a lower risk profile.
Following a comprehensive market review, Class B units were formed at the request of CIO’s, Investment Consultants and Researchers seeking a benchmark that is better suited to their clients and portfolios they manage through MDA’s, SMA’s and Model Portfolios. Both Class A and Class B units have identical holdings and investment strategies.
The fund has outperformed the Small Ordinaries and Small Industrials by approximately 7% p.a. (after fees) over the last 6 years with measured risk approximately 18% lower than both indices.
The Prime Value Emerging Opportunities Fund is currently open to retail investors and available on platforms including Netwealth, uXchange, Mason Stevens, Hub24 and BT Panorama, Praemium and AMP North.
