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 31 July 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 -1.7% -1.5% 5.2% 6.0% 11.0% 15.7% 8.1%
S&P/ASX Small Ordinaries Accumulation Index 0.3% 0.2% 4.0% -1.1% 5.6% 5.8% -0.2%
Outperformance -2.0% -1.7% 1.2% 7.1% 5.4% 9.9% 8.3%

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 Ralton Smaller Companies Model portfolio has been rated by Lonsec. For more information please contact client services.


Lonsec Managed Funds Research

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The Lonsec Limited (“Lonsec”) ABN 56 061 751 102 rating (assigned Jan 2014) presented in this document is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant 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 this document following publication. Lonsec receives a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.The Zenith Investment Partners (“Zenith”) ABN 60 322 047 314 rating (assigned March 2014) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines.