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DNR Capital Australian Equities High Conviction Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100179-2022-12-21-02:28.pdf
FUND MANAGER DNR Capital
ASX Code
APIR PIM0028AU
ASSET CLASS AUSTRALIAN EQUITIES
INVESTMENT STYLE Australian equities and cash. Style neutral with a quality focus.
INVESTMENT PROFILE To invest in a high conviction portfolio of Australian equities that aims to outperform the Benchmark by 4% p.a. (before fees) over a rolling three-year period.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 01-06-2015
BENCHMARK S&P/ASX 200 Total Return Index
FUND SIZE S&P/ASX 200 Total Return Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS 15-30
FEES 0.90% p.a. (inclusive GST and RITC)
STRUCTURE

Benefits

Benefits

Benefits of investing in the DNR Capital Australian Equities High Conviction Fund

Investing in the Fund will give you access to the following features and benefits:

  • An experienced and stable investment management team.
  • A comprehensive investment process that is based on the belief that a focus on quality will enhance returns when it is combined with a thorough valuation overlay.
  • Access to an Australian equities portfolio that seeks to be high conviction and invests for the medium term.

Risk Level

High

Investor suitability

Investors seeking a medium-term investment focused on achieving growth, with less focus on generating excess income. The investor is prepared to accept higher volatility in pursuit of higher growth.
RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

The DNR Capital Australian Equities High Conviction Fund is designed for investors with a medium-term investment objective focused on achieving growth with less focus on generating excess income. Investors are prepared to accept higher volatility in pursuit of higher growth.

Investment philosophy

DNR Capital believes a focus on quality businesses will enhance returns when combined with a thorough valuation overlay. DNR Capital seeks to identify quality businesses that are mispriced by overlaying a quality filter, referred to as the quality web', with a strong valuation discipline. The portfolio is high conviction, and invests for the medium term.

Investment strategy

The DNR Capital Australian Equities High Conviction Fund has an investment style best described as style neutral'. The security selection process has a strong bottom-up discipline and focuses on buying quality businesses at reasonable prices. Quality businesses are defined as being those with the following five attributes:

  • earnings strength (particularly improving return)
  • superior industry position
  • a sound balance sheet
  • strong management
  • low environmental, social and governance (ESG) risk.

Where a company possesses quality characteristics, then it is eligible for inclusion in the Fund. However, it must also represent value and sit comfortably within the portfolio construction requirements.

A range of valuation methodologies are used depending on the nature of the company being assessed to identify mispriced opportunities.

The portfolio construction process is influenced by a macroeconomic appraisal and also considers the risk characteristics of the portfolio, such as stock and sector correlations.

Mandate

How we invest your money

Fund asset allocation

  • Equities 80-100%
  • Cash 0- 20%

This provides only an indication of the intended investments of the Fund. You may obtain information of the actual investment allocations of the Fund by contacting the Manager directly.

The Fund will not invest in derivatives.