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The Prime Value Emerging Opportunities Fund has achieved another high ranking in the latest Mercer Australian Small Companies (ex-ASX100) survey, following its table-topping ranking in last year’s survey.
The Fund, which is managed by Prime Value Asset Management Portfolio Manager, Richard Ivers, was ranked seventh out of 45 other funds for performance for the year to 30 June 2021.
This is the Fund’s second year in the survey, during market conditions which have included the fastest bear market followed by the fastest bull market in history.
The Prime Value Emerging Opportunities Fund returned 42% after fees for the year to 30 June 2021, and has returned a consistently strong 16.3% per annum after fees since inception in October 2015.
Mr Ivers said market volatility had provided a market with good investment opportunities and plenty of risks. “It has been a fascinating, topsy-turvy market for small cap stocks where COVID-winners quickly became COVID losers, and vice-versa.
“The volatility in small caps created some opportunities to buy into quality companies at a good price. The challenge now is to look through the market to consider how stocks may fare during an economic rebound supported by monetary and fiscal stimulus.
“The landscape is changing as more economies open up due to increasing vaccination, and as corporate earnings become more self-sustaining.”
Mr Ivers said consistency was the main goal. “While it’s nice to achieve a high ranking our aim is to be consistently top quartile over the long term.”
“We believe consistency is derived from protecting capital when investing. Hence we avoid speculative and highly leveraged stocks.”
Ivers said capital protection was the springboard to returns for the Prime Value Emerging Opportunities Fund. “Markets will always turn down at some stage, and the ability to weather these downturns is what generates long-term outperformance.”
“If your portfolio falls 25% during a big correction you only need to make up 33% to get back. But if your portfolio falls 50% then you need to make up 100% and suddenly you are a long way behind.”
“Hence protecting capital in difficult markets is the springboard to returns.”
The Prime Value Emerging Opportunities Fund is open to retail investors and can be accessed via:
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