Collins St Asset Management are pleased to announce that their flagship Collins St Value Fund has been ranked #1 out of 108 funds in Morningstar’s Large-Cap Australian Equities Value category for FY2020.
Importantly, the Fund was the only one in its category to actually deliver a positive net return to investors during the financial year, underscoring the strong focus the investment team place on backing only their best ideas and, first and foremost, focusing on preserving investor capital.
The success of the Fund, however, is not new. The Collins St Value Fund has also:
- Beaten the ASX 200 by 2.26% p.a. and its Morningstar peer group by 7.47% p.a. over the 3 year period to 30 June 2020;
- Delivered 10.88% p.a. net of fee returns since inception in February 2016; and
- Been rated 5 stars (quantitative) by Morningstar on an overall basis.
Moreover, in an environment where:
- A bright light is being shone on the way that Financial Advisers meet their ‘best interests’ obligations when constructing investor portfolios;
- Self-directed investors are looking for fund managers with a genuine point of difference, that aren’t growing their funds under management simply to please external shareholders and who have a genuine alignment of interests with their clients; and
- Real returns are becoming increasingly hard to achieve against a bleak macro-economic outlook, underscored by a highly indebted Australian consumer
The Collins St Value Fund:
- Does not charge any fixed management fees. The only remuneration the business receives is success based and requires that investors make money before they do (i.e. a positive return above our highwater mark and performance hurdle). This incentivises a very sharp focus on both capital preservation and also capacity management.
- Has been free to take significant positions (without reference to index or sector weights) in a range of uranium, pharmaceutical, gold and ‘special situations’ (convertible notes, take-over arbitrage, special dividend and management buyout opportunities) in order to drive investor returns.
- Actively manages cash positions and, having held 35% cash in April 2020, is now sitting on 15% cash (and growing) in anticipation of some attractively priced large cap opportunities presenting themselves throughout what is expected to be a very challenging reporting season and second half to the calendar year.
About the Collins St Value Fund
The Collins St Value Fund brings a distinctively different approach to the management of Australian equities.
Boutique by design, bespoke by nature. The Collins St Value Fund is:
- Always seeking to challenge the status quo in the delivery of superior investor outcomes, with a focus on capital preservation first and foremost. This can lead us towards quite a unique portfolio of investments which, over time, have been underpinned by a range of bespoke convertible note, take-over arbitrage, special dividend and management buy-out investments, alongside unconstrained access to any ASX listed stock.
- Genuinely high conviction and does not attempt to be ‘all things to all people’. The number of portfolio positions is typically between 8 – 20 and we are not afraid of putting up to 10% into an idea regardless of where it sits in the All Ordinaries Index. We believe superior returns are best achieved with deep and differentiated insights into a small number of stocks – after all, the wider the research and more diverse the holdings the more ‘index’ like returns you can expect.
- Passionately unconstrained. True value knows no boundaries and a true investor should be free to pursue them, wherever in the market they may be found. The Fund has, in the past, taken significant exposures to Gold, Uranium, selected Pharmaceutical stocks and niche Property Services and Infrastructure companies, whilst maintaining the freedom to allocate to Cash in the absence of an otherwise compelling opportunity.
- Truly aligned. Investors in the Fund need to make money before our business does. If your investment does not increase in value we receive no management fees, it’s that simple. The complete absence of any fixed management fees incentivises both capital preservation and careful management of capacity