Investment Objective

The Value Fund’s portfolio is constructed for the purpose of obtaining superior long-term returns from a select number of underlying businesses, irrespective of short-term share price movements. As such, returns are unlikely to be correlated with any particular index, benchmark or underlying asset class in the short-term.

The Value Fund’s ultimate objective is to outperform the ASX All Ordinaries Index over a period of five years. This investment objective is not a forecast. It is only an indication of what the investment strategy aims to achieve over the medium to long term. It is possible that the portfolio will, at times, be highly concentrated in a small number of opportunities. This means returns could vary significantly from year to year, more so than the underlying volatility in the wider market, as represented by the ASX All Ordinaries Index, for example.

The Value Fund will predominantly invest in listed securities, including property trusts and hybrids aiming to provide capital growth and some distributions. The Value Fund may also invest in companies that are likely to be listed in the near future. The Value Fund will invest no more than 10% of its assets into unlisted investments. The Value Fund does not have any “target” position with regards to asset allocation.

When attractive opportunities are sparse and Intelligent Investor Funds Management believes the overall portfolio return can be increased by holding cash, the Value Fund may be substantially invested in cash. Conversely, when Intelligent Investor Funds Management is finding plenty of opportunities that meet its investment criteria (see Investment strategy), the portfolio will be as close to fully invested in Australian listed assets (predominantly shares) as possible. 

Remember that the investment mix can change within the ranges significantly and sometimes quickly. Ask your adviser or contact us for the latest investment mix and the size of the Value Fund and monthly and quarterly reports.