Leading investment research house Zenith Investment Partners has retained its ‘Highly Recommended’ rating for DNR Capital’s Australian Emerging Companies Fund1, highlighting the fact that “the Fund has significantly outperformed the benchmark since inception (in 2018).”

The Fund offers investors a relatively concentrated, exposure to quality Australian smaller companies. It has posted an annualised return of 12.93% since its inception in August 2018, outperforming the S&P/ASX Small Ordinaries Total Return Index by 9.51%2.

This rating also reflects Zenith’s “high regard for DNR Capital’s robust investment process, which aims to identify high-quality companies trading at attractive valuations.”

Furthermore, Zenith believes the Fund is a highly attractive investment option within the Australian smaller companies peer group and believes the Fund is well placed to deliver upon its investment objectives.

The report highlights the robust security selection process adopted by DNR Capital and says “Zenith seeks to identify Funds that can outperform in over 50% of months in all market conditions, as we believe this represents consistency of manager skill. In addition, we view a strategy’s ability to produce stronger upside capture ratios relative to downside capture ratios as an attractive feature.

“The Fund has achieved both outcomes since inception. It has displayed greater consistency of outperformance in rising markets relative to declining markets. The Fund’s tracking error has remained significantly higher than its peers, which is consistent with DNR Capital’s concentrated and benchmark-unaware approach.”

Zenith acknowledges that both Sam Twidale and Mark Sedawie, who have joint responsibility for the Fund, are capable investors with complementary backgrounds and skill sets.

DNR Capital Australian Emerging Companies Fund Portfolio Manager, Sam Twidale says “We are pleased to retain this high rating from Zenith.

“We continue to focus on positioning the portfolio in quality businesses with attractive valuation upside. Key overweight positions are across the Consumer Discretionary, Technology and Financials sectors. Of particular focus are management teams reinvesting cash flows at high returns on incremental capital, and where the runway for organic growth remains substantial.

Click here for more information on the DNR Capital Australian Emerging Companies Fund.


1.DNR Capital Australian Emerging Companies Fund, ARSN 627 783 957. APIR PIM4357AU
2.Performance is net of fees as of 29 February 2024. Past performance is not indicative of future performance.


IMPORTANT NOTE: This media release has been prepared and issued by DNR Capital Pty Ltd, AFS Representative – 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and you must make your own enquiries concerning the accuracy of the information within. The information in this document has been prepared for general purposes and does not take into account the investment objectives, financial situation or needs of any particular person nor does the information constitute investment advice. Before making any financial investment decisions you should obtain legal and taxation advice appropriate to your particular needs. Investment in the DNR Capital Australian Equities Emerging Companies Fund can only be made on completion of all the required documentation. The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL No 235150 (as part of the Perpetual Limited group of companies) is the Responsible Entity and issuer of units in the Fund. An investor should obtain and read the PDS and target market determination and consider their circumstances before making any investment decision. The PDS  and target market determination are available at the Fund website at www.dnrcapital.com.au/invest, or a paper copy can be obtained, free of charge, upon request by calling DNR Capital Pty Ltd (‘Manager’), the investment manager of the Fund.  Total returns shown for the Fund have been calculated using exit prices after taking into account all of Perpetual’s ongoing fees and assuming reinvestment of distributions. No allowance has been made for taxation. Past performance is not indicative of future performance. The Manager or The Trust Company (RE Services) Limited does not guarantee the repayment of capital from the Fund or the investment performance of the Fund. An investment in this Fund is subject to investment risk including loss of some or all of an investor’s principal investment and lower than expected returns. The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned to the DNR Capital Australian Emerging Companies Fund 02/2024, referred to in this is limited to “General Advice” (s766B 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, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. 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. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.