The small cap Prime Value Emerging Opportunities Fund has been ranked in third place for annualised returns over a five year period by Mercer. The ranking was announced in the Australian Small Companies (Ex-100) Sub-Universe category of Mercer’s annual survey for performance to 30 June 2024.
This is the first time the Prime Value Emerging Opportunities Fund has been eligible for a ranking over a five-year time period in the Mercer survey.
The Prime Value Emerging Opportunities Fund previously topped the tables for annualised performance over a three-year period to 30 June 2022, and finished first for performance over a one-year period for the financial year ending 30 June 2020.
Earlier this year, the small cap fund was upgraded to Highly Recommended by Zenith Investment Partners.
Portfolio Managers for the Prime Value Emerging Opportunities Fund, Richard Ivers and Mike Younger, say the Fund aims for consistency, though like any fund it may experience short-term performance fluctuations.
“We focus primarily on bottom-up stock picking and company fundamentals. As long as we get these right, fund performance will take care of itself”, Mr Ivers said.
The Prime Value equities team is currently navigating an important company reporting season – during this time the small cap team expects to meet with more than 250 management teams covering all industries across the country.
Mr Younger said: “Reporting season is a litmus test for us, and we believe company meetings are important to understand and assess the strategic direction of smaller companies.”
As markets deal with considerable uncertainty, the current reporting season is likely to produce its share of surprises and opportunities. “Some of the quality smaller companies are doing well, following a ‘risk-on’ period which defined late 2023 and early 2024 and drove the market strongly.
“Investors will be rewarded for being more selective in smaller companies as the earnings risks in the economy have heightened over the year”, Ivers said.
Interest rates will continue to have a bearing on the market, according to Mike Younger. “This has been a year defined by macro volatility around interest rates, and it’s possible we could see some surprises before the year is out. Market anxiety about inflation and interest rates continues to linger below the surface.
“However, the June quarter inflation print has seemingly snuffed out the potential for a rate hike, with the focus now on when interest rates will start to fall.
“This is typically quite positive for equities, and in particular for small caps which have greater leverage to economic growth than large caps”, he said.
Some recent highlights for the Prime Value Emerging Opportunities Fund include:
- Upgraded to Highly Recommended by Zenith during 2024
- Finalist for the Australian Equities – Small Cap Award at the 2023 Zenith Fund Awards
- Winner of the Australian Equities – Small Cap Award at the 2022 Zenith Fund Awards
- Top-performing fund for FY2022 Mercer Australian Small Companies (ex-ASX100) survey for performance over three years
- Ranked a Star Manager during 2022 by Financial Newswire in association with SQM Research.
- Ranked first in FY2020 Mercer Australian Small Companies (ex-ASX100) survey for one year performance
To invest in the Prime Value Emerging Opportunities Fund please contact our Client Services Team at info@primevalue.com.au and 61 3 9098 8088