Prime Value Emerging Opportunities Fund upgraded to Highly Recommended
Leading small cap investment fund, the Prime Value Emerging Opportunities Fund, has been upgraded to Highly Recommended by respected research house, Zenith Investment Partners.
The Highly Recommended rating is a major endorsement of the Fund’s investment philosophy, execution and process, which is overseen by Portfolio Managers Richard Ivers and Mike Younger.
The Prime Value Emerging Opportunities Fund was the only small cap fund to be upgraded to Highly Recommended in Zenith’s latest Sector Report.
The Prime Value Emerging Opportunities Fund has outperformed both the small ordinaries and small industrials indices for each of the last six years, with lower volatility. The Fund has delivered 11.5% per annum after fees to investors since inception in 2015.
The consistency of this performance is more impressive when considering the different market conditions over this time. There have been bull markets, bear markets, a global pandemic, a tech boom, a tech bust, record low interest rates, and record increases in interest rates. All with a backdrop of uncertainty and change.
In its February 2024 Sector Report for Small Companies, Zenith said of the Prime Value Emerging Opportunities Fund: “Zenith has high regard for Prime Value’s investment personnel, with our conviction in the Fund underpinned by the consistent application of the investment process.”
Mike Younger, Portfolio Manager of the Prime Value Emerging Opportunities Fund, said portfolio construction plays a key role in achieving performance outside of the top 100 ASX stocks. “Portfolio structure is very important to our performance. We put an emphasis on companies which demonstrate resilient earnings, but we also hold some higher growth stocks in the portfolio.
“This blend of defensive with higher growth stocks provides more evenly distributed returns.
“This mix also allows returns to be achieved with a lower volatility than the Small Ordinaries and Small Industrials indices – and we know that reducing volatility in this sector is critical for returns.”
Richard Ivers, Portfolio Manager of the Prime Value Emerging Opportunities Fund, said actively managed portfolios were proven as the best way to invest in small cap companies on the Australian market. “Many of the companies we describe as small cap are still substantial businesses, and there is ample opportunity for active managers to add alpha via these companies.
“Smaller stocks are a relatively under-researched part of the market and there is a large potential investment pool, which rewards managers with experience and a clear process.”
Some other highlights for the Prime Value Emerging Opportunities Fund in recent years:
- Outperformed both the Small Industrials and Small Ordinaries Index for each of the last six years
- 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
- Finished top quartile in the Mercer Australian Small Companies (ex-ASX100) survey for three out of the last four financial 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