Oc Funds Management

Ralton Smaller Companies Model Portfolio

Fund Description To invest in quality smaller capitalisation companies that are assessed as likely to provide investors with attractive long term returns, and at the time of purchase are listed, or about to be listed, on the ASX and not included in the S&P/ASX 50 Index.
Objective To provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of smaller capitalisation Australian shares. The Portfolio aims to deliver a return superior to that of the market over periods of five years or longer while at the same time seeking to minimise the risk of investment capital loss.
Investment Strategy To invest in a selection of stocks within its investment universe which offer attractive value relative to the market. By doing this we can maximise the opportunity over time to deliver the return target for the portfolio. In constructing the portfolio we take account of our views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for our companies adds an additional risk overlay. In doing all of this we focus on companies with quality business models as we believe these are best positioned to preserve capital through the cycle.
Investment Universe ASX listed, or about to be listed, and not included in the S&P/ASX 50 Index
Model Inception Date 1-Feb-08
Benchmark Index S&P/ASX Small Ordinaries Accumulation Index
Target Outperformance 4% p.a. (gross of fees)
Number of Shares 25 - 40
Australian Equities 85% - 98%
Cash 2% - 15%
Sector Limits None
Single Stock Limits
Index weight < 0.5% 1.0% to 5%
Index weight = 0.5% to 2% 1.0% to Index + 5%
Index weight = 2% to 6% 1.0% to the greater of 3x Index or 10%
Investment Time Horizon At least 5 years
Tracking Error Guidelines 5% - 9% p.a.
Other restrictions Individual security holdings are also limited to 10% of a company's issued capital
Authorised Benchmark companies, convertible securities, hybrid debt, and other ASX securities issued by qualifying companies
Excluded Derivatives, unlisted securities, foreign listed securities

KEY FEATURES

The Ralton Smaller Companies Portfolio is designed for investors who:

  • Seek long term capital growth from a concentrated portfolio of smaller companies, with some tax-effective income;
  • Seek consistent above market returns; and

Have a long term investment horizon of at least five years and accept the risk of equity

PERFORMANCE

To 29 September 2017 1 Month 3 Month 6 Month 1 Year 3 Years (p.a.) 5 Years (p.a.) Since incep (p.a.)
Ralton Smaller Companies Model Portfolio 2.3% -1.1% 1.5% 1.8% 11.8% % 8.2%
S&P/ASX Small Ordinaries Accumulation Index 2.8% 3.1% 3.8% 2.0% 8.2% % 0.2%
Outperformance -0.5% -4.2% -2.3% -0.2% 3.6% 0.0% 8.0%

Past performance is not a reliable indicator of future performance. The performance is quoted before fees and expenses. This information is provided for general comparative purposes. Positive returns, which the Funds are designed to provide, are different regarding risk and investment profile to index returns. 

PLATFORMS

  • AMP Personalised Portfolio Service
  • Brightday
  • Hub24
  • Linear
  • netwealth
  • OneVue
  • Praemium

For more information, contact John Clothier, General Manager, Distribution on +61 408 488 549.

RATING


The Lonsec Rating (assigned February 2017) presented is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Ralton Asset Management’s product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsecresearch.com.au/research-solutions/our-ratings