FAQs

Prime Value offers the following advantages:

True Stewardship – putting our clients first

Independence and transparency

Genuine alignment of Interest with investors – building wealth together

Superior investment returns

A unique, effective approach to stock picking and risk management – minimising mistakes

A skilled, well-resourced and stable investment team

A culture of outperformance and professionalism

Prime Value was founded in 1998 and launched the first Fund, Prime Value Growth Fund, in April 1998. The Imputation Fund was subsequently launched in December 2001. The Opportunities Fund and the Emerging Opportunities Fund were launched in November 2012 and October 2015 respectively. The board of directors and the investment managers have substantial investment experience in various corporations and institutions.

The shareholders and investment managers are cornerstone investors in the Prime Value Funds.

Prime Value acts as the manager of the Funds and is the Responsible Entity of each of the Funds. The role of the Responsible Entity is to hold the property of the Funds on trust for the relevant Investors and to operate the Funds in accordance with their respective constitutions and the requirements of the Corporations Act.

Prime Value is a public company limited by shares, which holds an Australian Financial Services Licence (No. 222055) authorising it to operate each of the Funds.

Yes. Our external custodian is JP Morgan Chase Bank, N.A. We have engaged them to perform certain custodial services as outlined in our PDS.

No, we can not guarantee the return of capital. We will do our very best to be a good steward in balancing between the need of wealth creation and wealth preservation. Due to the volatility of underlying assets of the Funds and other risk factors associated with investing, returns can be negative (particularly in the short-term).

Making any investment is a risk. Investing in our funds involves a similar risk to investing in Australian stocks. See page 4 of our PDS for more details on the risk factors.

In general, there are no fees when your money moves in and out of the Funds.

For investors in the Prime Value Opportunities Fund, the manager receives management fees of 0.95%pa (inclusive of GST and applicable RITC).

For investors in the Prime Value Emerging Opportunities Fund, the manager receives management fees of 1.25%pa (inclusive of GST and applicable RITC).

For direct investors in the Prime Value Growth Fund and Prime Value Imputation Fund, the manager receives management fees of 1.23%pa (inclusive of GST and applicable RITC) and there are administrative costs of approximately 0.205%pa, giving an Indirect Cost Ratio (ICR) or 1.435%.

For indirect investments in the Prime Value Growth Fund and Prime Value Imputation Fund, through an IDPS or IDPS-like scheme such as a platform or master trust, the Indirect Cost Ratio (ICR) is 1.23%. Total fees of indirect investments may be higher and will be detailed in the disclosure documents provided by the IDPS operator.

For investors in the Prime Value Enhanced Income Fund, the manager receives management fees of 0.60%pa (inclusive of GST and applicable RITC).

For direct investments in the Prime Value Growth Fund and the Prime Value Imputation Fund, the performance fee is 20.5% of the performance (after all other fees) in excess of the S&P/ASX 300 Accumulation Index.

A simple example:

If an Investor invested $100,000 on 30 June 2014 and the value of units increased (after management fees and administration costs) to $115,000 as at 30 June 2015 and if the S&P/ASX 300 Accumulation Index had risen by 10% over the same period (giving a theoretical investment of $110,000) then the performance fee would be calculated as follows:

Performance fee

= 20.5% of performance in excess of Benchmark

= 20.5% x ($115,000 – $110,000)

= $1,025

In other words, the net value of the investment (after all fees and costs) will be $113,975, representing a 13.975% return.

For investments in the Prime Value Opportunities Fund, the performance fee is 15% of the net performance above 8% pa, subject to a high water mark.

If an Investor invested $100,000 on 30 June 2014 and the value of units increased (after management fees and administration costs) to $115,000 as at 30 June 2015 compared to the benchmark of 8% over the same period (giving a theoretical investment of $108,000) then the performance fee would be calculated as follows:

Performance fee

= 15% of net performance above 8%

= 15% x ($115,000 – $108,000)

= $1,050

In other words, the net value of the investment (after all fees and costs) will be $113,950, representing a 13.95% return.

For investments in the Prime Value Emerging Opportunities Fund, the performance fee is 20% of the net performance above 8% pa, subject to a high water mark.

There is a buy/sell spread of generally +/-0.38% of the unit price. This spread reflects the cost of buying or selling Fund assets, including brokerage and government charges. The buy/sell spread is not a fee paid to Prime Value but will affect your investment return.

Please read the PDS of the relevant Fund for more details.

The minimum investment amount in each of the Funds are generally $20,000. We may allow an investor to start investing with a lower amount where appropriate. This may include children & family members of existing investors.

The minimum investment amount in the Prime Value Enhanced Income Fund is $50,000.

Yes, if you have a Self-Managed Superannuation Fund (where you are legally responsible for your own superannuation), then you could look at investing in our Funds as part of your superannuation investment strategy. In fact, many of our investors are investing through their Self-Managed or DIY Superannuation Fund. We suggest you seek independent advice.

This can be true, but small firms maintain greater flexibility and don’t involve a large committee in making investment decisions. Smaller firms with relatively smaller funds under management (FUM) can also invest in a larger range of companies (such as mid, small and micro caps) which may offer attractive investments return potential.

We don’t know. However, we aim to develop and maintain a very focused investment team to have maximum flexibility and responsiveness.

A managed fund pools the money of individual investors. This pool of money is then used to buy a range of different assets according to the individual investment policy of the fund. For example, a typical Australian equities fund will be invested in companies listed on the Australian sharemarket.

Managed funds are also called unit trusts; when you invest in one of the Prime Value Funds, your investment buys you units in the Fund. Your investment is not a direct investment in the underlying assets. The value of the units you hold represents the value of your portion of the assets that the Fund owns. As a result, the unit value can rise and fall, just as the market value of the underlying assets can rise and fall.

Distributions for the Opportunities Fund, Growth Fund and Emerging Opportunities Fund are paid half-yearly, at 31 December and 30 June. Distributions for the Imputation Fund and the Cash Plus Fund are paid each quarter, at 30 September, 31 December, 31 March and 30 June.

Distribution amounts are dependent on dividends, interest income and realised capital gains/losses received in respect of Fund assets in any given year. It varies from year to year.

What are your investment objectives?

How long do you want to invest?

How much risk can you tolerate?

Are you looking for income? Capital gain? Or both?

We suggest you seek independent financial advice to determine the appropriate investment solutions for your needs.