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The Prime Value Emerging Opportunities Fund has maintained its strong performance throughout the COVID-19 pandemic, after being named Australia’s best performing small caps fund in Australia for the year to 30 June 2020 by Mercer.
Remarkably, the Fund topped the Mercer Australian Small Companies (ex-ASX100) survey for the year to 30 June 2020 (source: MercerInsight®), ranked first among 45 small caps funds in its first year in the survey.
The Fund delivered an 18.1% return (after fees), 23.8% above the ASX Small Ordinaries Accumulation Index return of -5.7% for the year.
The strong performance has continued, with the Prime Value Emerging Opportunities Fund ranked highly by Morningstar: the Fund currently ranks second among approximately 300 funds for performance over one year and five year time periods, according to Morningstar, delivering 20.1% for the year to 30 November 2020 (after fees).
Since inception in 2015, the Prime Value Emerging Opportunities Fund has been a consistent performer, delivering 14.6% p.a. after fees to investors to 30 November 2020.
The Fund has a benchmark of 8% per annum as Prime Value aims to generate an investment return, not just beat an index.
Recovery brings opportunity
Market conditions are ripe for small cap stock pickers, according to Richard Ivers, who heads up the Prime Value Emerging Opportunities Fund.
He says the challenge in this recovering market is to look for companies which should be well positioned on the other side of the recovery, over the next 18-24 months.
“Small caps are volatile and this plays into our hands as stock pickers.
“We are seeing some big swings. Companies that were doing well during COVID-19 are now suffering, and vice versa.
“Importantly, we can participate in these opportunities without buying the hot stocks and taking unnecessary risks.
“By remaining true to our process and looking through the recovery, there is an opportunity to pick the eyes out of the market during this phase. It’s a fantastic opportunity.”
Richard said small caps provide a large investment universe, with more than 2,000 listed companies on the ASX. A sound investment approach which protects capital is vital to minimise volatility and maximise returns.
“Small cap companies include many outstanding businesses, which can provide strong returns over a long period of time.
“There are many companies which are undervalued and fly under the radar but are consistent performers. By remaining disciplined and avoiding the hot stocks we can locate these quiet achievers and deliver consistent returns.”
6 January 2021
Prime Value Emerging Opportunities Fund ranked No 2 in Australia for 2020 Prime Value’s investment philosophy of minimising mistakes has been rewarded with another strong year of investment returns. The Emerging Opportunities Fund was ranked number 2 in Australia by Morningstar for 2020, one of the more challenging years for investment markets in recent times. […]
24 December 2020
Prime Value Asset Management’s Matthew Lemke manages income funds and has worked in global investment markets for more than 30 years. Matthew watches fixed income markets closely, and says diversified income portfolios could provide some relief from relentlessly low interest rates. “The RBA said coronavirus has cast a shadow over the economy. Well, the incidence […]
25 November 2020
Investing in the market inflection point – by ST Wong Click here to read the full article – Financial Review, Wednesday, November 25, 2020, pages from 24 to 24 Click here to read full article on AFR website