Achieve long-term benchmark outperformance¹ with an award-winning fund
Cromwell Phoenix Property Securities Fund – Ordinary Units
Achieve long-term benchmark outperformance¹ with an award-winning fund
Cromwell Phoenix Property Securities Fund – Ordinary Units
The Cromwell Phoenix Property Securities Fund – Ordinary Units (Fund) is one of the top performing property securities funds in Australia, with underlying investments chosen by investment manager, Phoenix Portfolios3 (Phoenix).
The Fund provides your clients with exposure to a diverse portfolio of property securities that possess an understandable business model, good governance and are trading below Phoenix’s assessment of intrinsic value. Selecting from a wide investment universe, opportunities are often identified in typically smaller, under-researched yet attractively priced securities which possess compelling investment fundamentals but are overlooked by many managers due to their size.
This strategic approach of rigorous fundamental research has improved Phoenix’s ability to outperform the Benchmark Index over the long term.
Fund performance
as at 29 February 2024
View the latest Cromwell Phoenix Property Securities Fund – Ordinary Units performance figures for the quarter.
Learn more about Phoenix Portfolios investment strategy.
Interested in this fund? Contact your state manager.
Highly recommended by independent research houses Lonsec4 and Zenith5
The information in this section of the website is provided for the use of licensed financial advisers and wholesale investors only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products. Any advice is not personal advice and has been prepared without taking into account investors objectives, financial situation or needs.
By electing to continue, you confirm that you are a licensed financial adviser or a wholesale investor.
Fund snapshot
Fund Objective
The Fund aims to provide investors with a total return (after fees) in excess of the S&P/ASX300 A-REIT Accumulation Index over rolling three-year periods, while delivering lower total risk (as measured by the volatility of returns) over this period.
Investment Strategy
Phoenix seeks to achieve the Fund’s investment objective by choosing attractively priced securities determined by fundamental bottom-up analysis. It will use detailed yet standardised financial models, allowing a large number of securities to be researched, compared on a relative value basis and updated to capture changes in individual securities and markets.
Investments
The Fund will invest primarily in Australian property securities listed on the ASX, which hold underlying investments including office, retail, industrial and hotel assets. The Fund may also invest in a selected range of other assets including international listed property securities, cash and fixed interest, as well as a range of property-related securities such as interests in infrastructure funds and property development companies.
Benchmark
Performance is benchmarked against the S&P/ASX300 A-REIT Accumulation Index.
Fund Inception
April 2008.
Investment manager
Phoenix Portfolios Pty Ltd.3
Responsible entity
Cromwell Funds Management Ltd
Platform availability
AMP PortfolioCare
Asgard
BT Panorama
Colonial First State (CFS) First Wrap
Dash
HUB24
Macquarie Wrap
Mason Stevens
My North
Netwealth
North
Powerwrap
Praemium
uXchange
Our investment strategy
Phoenix adopts a ‘best ideas’ approach, carrying out extensive proprietary research on approximately 75 stocks covering a broad range of REITs, property-related stocks and some infrastructure. A large universe of investment options provides more opportunities to add value. Phoenix uses the following standardised valuation framework which facilitates ‘apples for apples’ comparisons.
Understandable investment philosophy
Phoenix believes that over the long term, superior investment performance can be achieved through investing in well-managed, shareholder-focused companies that are trading at a discount to their underlying intrinsic value.
Fundamental analysis focuses on ‘bottom-up’ research to fully understand the key factors that have driven historic performance and to enable informed forecasts to be made of future earnings and cash generation.
Phoenix has placed a self-imposed cap on its funds under management for the Fund in order to facilitate a wider universe of investment opportunities, including small-cap stocks. Small-cap stocks are typically under-researched and consequently inefficiently priced. Therefore, this expanded universe not only provides more choice, but often presents the best opportunities and is likely to result in a skew towards small cap stocks over time.
Long-term valuation models
Detailed valuation models are built for every security in the investment universe. These models capture and analyse historical financial information and are used to make forecasts of future business outcomes.
Phoenix adopts a long-term investment horizon and the focus of valuation models is on the assumptions that drive ‘mid-cycle’ outcomes. This process seeks to adjust for currently under-performing divisions if they are considered to be caused by temporary conditions, or alternatively, may apply a negative adjustment where conditions are considered to be unusually buoyant.
These forecasts are used to calculate the fair value of each security. Today’s prices are compared to these fair value estimates and the derived signal forms the basis of the team’s investment decisions.
Sum of the parts / break-up
To add further dimension to the research process, Phoenix also uses a ‘Sum of the parts’ valuation technique. This serves as a cross-check to the long-term valuation models described above, and as a shorter-term tool, can be more suitable under certain business conditions. This technique assesses the value of the security under a break-up scenario.
Risk management
Phoenix actively manages the risks in its portfolios through understanding and quantifying their potential impact under various scenarios, and through portfolio diversification. Given we seek to deliver equity returns over the long term, risk cannot be entirely eliminated, and the value of your investment can fall, particularly over short timeframes.
For a more detailed explanation of the investment process for the Cromwell Phoenix Property Securities Fund – Ordinary Units, please read the Product Disclosure Statement and Additional Information Document.
Meet the portfolio manager
Stuart Cartledge
Stuart Cartledge is the Managing Director of Phoenix Portfolios and the portfolio manager for each of the company’s property portfolios/funds. Prior to establishing the business in 2006, Stuart had built a very strong track record in the listed property security asset class in his role as Head of Property Securities at Citigroup Asset Management. Stuart has been actively managing portfolios of domestic securities since 1993 and was instrumental to building the A-REIT business at Citigroup. Stuart holds a master’s degree in engineering and Management from the University of Birmingham and is a Chartered Financial Analyst.
Learn more about Phoenix Portfolios.
Key documents
The information in this section of the website is provided for the use of licensed financial advisers and wholesale investors only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products. Any advice is not personal advice and has been prepared without taking into account investors objectives, financial situation or needs.
By electing to continue, you confirm that you are a licensed financial adviser or a wholesale investor.
Request a Product Disclosure Statement
Thank you for your interest in the Cromwell Phoenix Property Securities Fund – Ordinary Units. Please complete the form below to receive the Fund's PDS.
Information for existing advisers
Cromwell follows ASIC’s good practice guidance for website disclosure of material information. This means that all material information in relation to the Cromwell Phoenix Property Securities Fund will be posted on this webpage as soon as practicable after Cromwell becomes aware of it.
View the Cromwell Phoenix Property Securities Fund continuous disclosure.
Investor application forms – Ordinary Units
Investment transfer form – Ordinary Units
Additional units application form – Ordinary Units
Withdrawal request form – Ordinary Units
Direct reinvestment plan nomination form
Identification form – individuals and sole traders – Ordinary Units
Identification form – Australian companies – Ordinary Units
Identification form – unregulated Australian trusts and foreign trusts – Ordinary Units
View Tax Information for the fund.
Ratings and Awards
The Cromwell Phoenix Property Securities Fund has earned multiple awards for its exceptional performance as one of the top property securities funds in Australia.
Cromwell Phoenix Property Securities Fund has been named Australian Property Securities Fund of the Year at the Money Management 35th Annual Fund Manager of the Year Awards 2023.
Cromwell Funds Management has won the 2023 Zenith Fund Award in the Australian Real Estate Investment Trust category for the Cromwell Phoenix Property Securities Fund.
Cromwell Funds Management has won the 2022 Zenith Fund Award in the Australian Real Estate Investment Trust category for the Cromwell Phoenix Property Securities Fund.
How to invest
A potential investor must read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) in full.
A potential investor should consider the risks as outlined in section 4 of the PDS, and their appetite to risk in general when considering an investment in the Fund.
Apply online, or contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au.
Contact us
National Manager – Adviser Distribution
T: 0438 046 893
E: Daniel.Thomas@cromwell.com.au
Footnotes
- At 29 February 2024 (PSF – Ordinary Units), after fees and costs. Past performance is not a reliable indicator of future performance.
- S&P/ASX300 A-REIT Accumulation Index.
- Phoenix Portfolios Pty Ltd is owned by staff of Phoenix and Cromwell Corporation Limited ACN 001 056 980.
- The Lonsec Rating (assigned May 2023) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined by the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Cromwell Funds Management product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: Investment product ratings – Lonsec.
- The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (Zenith) rating (assigned July 2023) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001 Cth)) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
- Lonsec Research Pty Ltd (ABN 11 151 658 561 AFSL 421445) (Lonsec) are acting as a research partner for the Fund Manager of the Year Awards (Awards) issued by Momentum Media Group Pty Ltd on 22 June 2023 The Awards are determined using Lonsec proprietary methodologies, are solely statements of opinion, subjective in nature and must not be used as the sole basis for investment decisions. The Awards do not represent recommendations to purchase, hold or sell any products or make any other investment decisions. Investors must seek independent financial advice before making any investment decision and must consider the appropriateness of the information, having regard to their objectives, financial situation, and needs. Past performance is not an indication of future performance. Awards are current for 12 months from the date awarded and are subject to change at any time. Lonsec does not represent these Awards to be guarantees nor should they be viewed as an assessment of a fund or the funds’ underlying securities’ creditworthiness. Lonsec receives a fee from the financial product issuer(s) for researching the financial product(s), using objective criteria. Lonsec rating(s) outcome is not linked to the fee or the Award. Lonsec and its associates do not receive any other compensation or material benefits from product issuers or third parties in connection with the Award. Lonsec makes no representation, warranty or undertaking in relation to the accuracy or completeness of the Awards. Lonsec assumes no obligation to update the Awards after publication. The Award is for the exclusive use of the client for whom it is presented and should not be used or relied upon by any other person unless with express permission from Lonsec. Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document and any Award or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. ©Lonsec 2023. All rights reserved.
- Zenith Investment Partners Pty Ltd ABN 27 103 132 672 AFSL 226872 Fund Awards issued 13 October 2023 and 14 October 2022 are solely statements of opinion and not a recommendation in relation to making any investment decisions. Fund Awards are current for 12 months and subject to change at any time. Fund Awards for previous years are for historical purposes only. Full details on Zenith Fund Awards at https://www.zenithpartners.com.au/zenith-fund-awards-2023/.
Important Information
Units are issued by the Fund at a unit price determined in accordance with the Responsible Entity’s Unit Pricing Policy. Per the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority’s (APRA’s) Unit Pricing: Guide to Good Practice, investors will receive compensation for any material unit pricing errors. In accordance with these guidelines the Fund does not pay exited members compensation for material unit pricing errors where the amount of any compensation payable is less than $20.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333 214 (CFM) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Phoenix Property Securities Fund ARSN 129 580 267 (Fund). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 15 November 2023 (PDS). A target market determination (TMD) is available. Applications for units in the Fund can only be made on the application form. The PDS, TMD and application form are issued by CFM and is available from www.cromwell.com.au/PSF or by calling Cromwell’s Investor Services team on 1300 268 078. This content has been prepared without taking account of your objectives, financial situation or needs. In deciding whether to acquire or continue to hold an investment you should consider the PDS available from Cromwell and assess, with (or without) your financial adviser, whether products fit your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this notice. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS. Phoenix Portfolios Pty Ltd ABN 80 117 850 254 AFSL 300 302 (Phoenix) is the investment manager of the Fund. None of CFM, Phoenix, nor their related entities, directors or officers makes any promise or representation, or gives any guarantee as to the success of the Fund, distributions, the amount you will receive on withdrawal, your income or capital return or the tax consequences of investing.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not a reliable indicator of future performance. Forward-looking statements in this notice are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.