Key Benefits

  1. Truly microcap focus
  2. Significant co-investment by investment manager
  3. Fees only paid when your investment increases in value
  4. Zero base management fee

Fund Details

For investors looking for access to under valued ASX-listed microcaps using Phoenix Portfolios’ ‘best ideas’ approach and aims to find hidden value in under-researched stocks.

Objective The objective of the Fund, over rolling 5 year periods is to:
  • Deliver a total return in excess of inflation2 (as measured by the Consumer Price Index) plus 7.5%; and
  • Outperform the S&P/ASX Small Ordinaries Accumulation Index (“Benchmark”) after fees and costs.
Overview The Fund holds a concentrated portfolio of ASX listed small cap securities (“microcaps”) that are selected using a value orientated ‘best ideas’ investment philosophy.
Investments Investments are likely to be in small companies with the majority selected from outside the top 300 listed securities.
Benchmark S&P/ASX Small Ords.
Date commenced23 December 2011

Investment Strategy

Microcaps typically have little analyst coverage as institutions are unable to deploy meaningful amounts of capital and therefore cannot justify investing in research. This means many companies outside the main ASX indices are under-researched and undiscovered. This can give rise to situations where companies trade well below our assessed value.

We seek to identify pricing discrepancies in these ‘under-researched’ stocks and blend together a portfolio of investments that offers the highest risk adjusted after-tax expected return. The Fund will typically hold between 15 and 40 investments. There is a cap on the Fund size to maximise performance potential.

Risk and Volatility

The heat map above shows the historic volatility of the Fund. CFM believes that it is important for investors to be aware of this to ensure their risk appetite isn’t compromised through their choice of investment. Past volatility is not an indication of future volatility.

Disclaimer: Capital growth and income distributions are not guaranteed and are subject to the assumptions and risks contained in the PDS. Past performance is not a reliable indicator of future performance.

Click here for an insight into how the Cromwell Phoenix Opportunities Fund investment management team views risk and volatility in microcap stocks:

How a fund manager views risk

Risk Disclosure

Any investment, including an investment in this Fund, is subject to risk. If a particular risk eventuates it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. Examples of key risks include: manager risk, market risk and liquidity risk. See Section 4 of the Fund’s product disclosure statement dated 17 April 2015 (“PDS”).

Past performance is not indicative of future performance. Forward-looking statements in this webpage 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 Fund’s PDS.

How to Apply?

Although the Fund is closed to new investors, existing investors can still apply for additional units by completing and returning the additional units application form available here.

If you have any questions regarding the Fund, please contact your financial adviser or Cromwell Investor Services directly on 1300 276 693 or email invest@cromwell.com.au.