Leading investment research house Zenith Investment Partners has assigned a ‘Highly Recommended’ rating to DNR Capital’s Australian Emerging Companies Fund1, describing it as a “highly attractive investment option within the Australian smaller companies peer group.”
Zenith says DNR Capital has a “robust investment process” based on the premise that markets are inefficient and short-term in focus, giving rise to opportunities to outperform over the medium to long term. “Since DNR Capital’s investment philosophy and process have been applied to the smaller companies segment of the market, impressive results have been delivered.”
The Fund offers investors a relatively concentrated exposure to Australian smaller companies, with 20 to 45 stocks. DNR Capital aims to hold a portfolio of attractively priced companies that exhibit high quality characteristics, such as earnings strength, superior industry position, sound balance sheet, strong management and low ESG risk.
The Fund1 has posted returns of 13.32%p.a.2 since its inception in August 2018, outperforming the S&P/ASX Small Ordinaries Total Return Index by 9.93%p.a.
Over the 12 months to the end of January 2023, the Fund returned 5.65%2, compared with a 4.44% fall in the benchmark.
Portfolio Manager, Sam Twidale says “Although the short-term outlook remains uncertain as central banks hike interest rates, we believe that more attractive opportunities are starting to emerge in Australian small caps. Valuations have adjusted significantly lower over the past year, providing a more compelling entry point for investors. Earnings forecasts are also being revised to more realistic levels, with profitability under pressure from lower revenue and higher costs. For long-term focused investors, we believe this presents the opportunity to start buying high quality business models on rebased valuations and earnings. Our focus has been on companies which have the resilience to get through a weaker period for the economy, and where the long-term outlook remains very promising”.
Learn more about 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 31 January 2023. 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 the issuer of units in the Fund. Prior to making a decision about whether to acquire, hold or dispose of units in the Fund you should consider the Product Disclosure Statement (PDS) and target market determination (TMD) for the Fund to see if it is right for you The PDS and target market determination are available at the Fund website at 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 02/2023, 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.