Spheria Opportunities Fund
About the Fund
The Fund, previously known as the Spheria Australian Midcap Fund, is an actively managed portfolio investing in a broad range of Australian and New Zealand companies with a mid-small bias.
The objective of the fund is to specifically seek out equity investments where the present value of future free cash flows can be reasonably ascertained and the security is trading at a discount to its intrinsic value, subject to certain risk criteria.
The letter sent to unitholders can be downloaded here.
The objective of the Fund is to outperform the S&P/ASX Mid-Small Accumulation Index over the medium to long term by investing predominantly in listed companies which are outside the top 50 ASX listed companies by market capitalisation and companies listed on the New Zealand Stock Exchange with an equivalent market capitalisation.
Investing in the Fund offers investors a range of benefits:
- Focus on cash generative business models – Spheria is a fundamental based investment manager with a bottom-up focus.
- Team experience – the investment team of Spheria has over 50 years experience investing in equities.
- Potential for higher growth – midcap companies generally have more potential for growth relative to large companies as they may be in the earlier stages of development or are providing new services or technologies.
- Open-minded, holistic thinking – Spheria assesses businesses with a broader view, noting that global parallels are important in a technologically evolving environment.
- Risk aware – risk is central to Spheria’s thinking around portfolio construction and investment not merely an after-thought.
Note all investments carry risk:
- Market risk – The Fund may be materially affected by market, economic, social and/or political conditions globally and in the jurisdictions and sectors in which it invests or operates. This includes conditions affecting interest rates, the availability of credit, currency exchange and trade barriers.
- Regulatory risk – Changes to regulations can affect the Fund’s operation, disclosure, or investment activities.
- Income risk – These may fluctuate significantly in their value with the ups and downs in the economic cycle and the fortunes of the issuing firm.
The Spheria Opportunities Fund received a ‘Recommended’ rating from Zenith Investment Partners (February 2020)1.
|BENCHMARK:||S&P/ASX Mid-Small Accumulation Index|
|HOLDS BETWEEN:||Generally 20-65 stocks in Australian & New Zealand listed securities|
|SUGGESTED INVESTMENT TIMEFRAME:||3 to 5 years or more|
|DISTRIBUTION FREQUENCY:||Half yearly|
|MANAGEMENT FEE:||0.99% p.a.|
|PERFORMANCE FEE:||15% p.a. of outperformance above the benchmark (after base mgt fee).|
|RESPONSIBLE ENTITY:||Pinnacle Fund Services Limited|