Key Benefits

  1. Diversification across multiple geographic jurisdictions
  2. Exposure to an area of global capital markets that has little or no broker research coverage
  3. Significant co-investment by investment manager
  4. Fees only paid when your investment increases in value
  5. Zero base management fee

Fund Details

For investors looking to invest in a geographically diverse portfolio of listed, small capitalisation securities, the Fund invests in a portfolio of internationally listed, predominantly small capitalisation securities, which at the time of their acquisition, are considered to be trading at discounts to their observable net asset values (NAVs).

Objective

The objective of the Fund, over rolling five-year periods is to:

  • deliver a total return (after fees) in excess of 7.5% per annum; and
  • outperform the MSCI All Country World Net Index in $AUD (“Benchmark”) after fees and costs.

Note, these are objectives only, and their achievement is not promised nor guaranteed.

Overview The Fund holds a concentrated portfolio of internationally listed, predominantly small capitalisation securities, which at the time of their acquisition, are considered to be trading at discounts to their observable NAVs.
Investments The Fund is expected to invest across multiple global equities markets, such as North America, Europe and Asia. It is likely to invest in both developed and emerging markets.
Investments are likely to be selected outside the constituents of global large capitalisation indices and will mostly have a free float market capitalisation of less than US$5 billion at the time of initial investment.
Benchmark MSCI All Country World Net Index
Date commenced January 2020

Investment Strategy

Cromwell Funds Management Limited (CFM) and Phoenix Portfolios Pty Ltd (Phoenix) believe that over the medium to long term, superior investment performance may be achieved by investing in securities that are trading at a discount to their underlying intrinsic value.

Across global markets, some of these securities have readily ascertainable and observable NAVs. A number of these securities trade at significant discounts to their observable NAVs. This is particularly true in areas where a limited number of analysts are scrutinising company valuations. This can give rise to situations where companies trade well below our assessed value.

Phoenix aims to blend together a portfolio of predominantly “under-researched” securities with free float market capitalisation of less than US$5 billion, where pricing discrepancies are often the largest.

CFM has initially capped the Fund size at $100 million of Net Trust Value to allow the Fund to maintain its strategic advantage over many of its competitors, as it facilitates investment in a wider universe of securities.

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 (PDS) dated 26 October 2021.

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?

Applications can be made online at apply.cromwell.com.au. Alternatively, investors are required to complete and return the application form accompanying the PDS and pay their nominated investment amount.

If you have any questions regarding the Fund, please contact your financial adviser or Cromwell's Investor Services Team directly on 1300 268 078 or email invest@cromwell.com.au.