“We believe the small-cap market provides the best opportunities to provide strong absolute performance for investors”

The Investment Objective

We aim to deliver capital and income growth by investing in a diversified portfolio of emerging companies.


The Investment Philosophy

We believe the small-cap market provides the best opportunities to provide strong absolute performance for investors. Historically we have found that earnings and valuation are the two major drivers of share prices in the long term. A range of shorter-term factors can cause a company’s share price performance to deviate from its intrinsic value. The markets mispricing creates an investment opportunity.


The Investment Opportunity

The Fund is long only, meaning it will only buy securities in order to benefit from rising share prices. The Fund will generally hold a diversified portfolio of 30-80 stocks, predominately growth companies with a value overlay.

The Fund is benchmark unaware and aims to hold no more than 20% cash (on average) over the longer term. No short selling, gearing or hedging is used.

We believe this investment approach, coupled with a flexible mandate, will deliver our investors strong returns over the long-term.

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Key Features

Fund Name1851 Emerging Companies Fund
TrusteeThe Trust Company (Re Services) Limited
Fund Administrator and CustodianMainstream Fund Services
Investment StrategyLong only, actively managed portfolio of small companies
BenchmarkS&P ASX Small Ordinaries Accumulation Index
Investment ObjectiveTo deliver strong relative returns above the Benchmark*
Investment Timeframe5-10 years
Unit PricingMonthly
Who Can InvestTo invest in the Fund you need to be a “wholesale client” as defined by the Corporations Act. Subject to this, the Fund is available to all types of investors, including individuals, super funds and family trusts/companies, as well as professional investors and family offices.
FeesManagement fee: 1.25% (excl GST) of the Net Asset Value of the Fund.
Performance fee: 20% (excl GST) of the total return of the fund in excess of the return of the Benchmark during a relevant performance period and provided any prior underperformance has been recovered.
Applications/RedemptionsMonthly cut-off at 2pm on the last business day of the month. The minimum initial application that will be accepted is $100,000 (unless otherwise agreed by the Manager) with additional applications subject to a minimum of $25,000. Applications will be processed monthly.  The minimum withdrawal request is $25,000.
Buy/Sell Spread+/- 0.25%
Distribution FrequencyAny distributions will be paid on an annual basis. Distributions are generally reinvested in the Fund unless you instruct otherwise.
Cooling OffThere is no cooling-off right for investors. An Application Form cannot be withdrawn once it has been received.

*There is no guarantee that the Fund’s investment objective will be achieved. The investment objective is not intended to be a forecast. It is merely an indication of what the Fund aims to achieve over the medium to long term. The Fund may not be successful in meeting this objective. Neither returns nor your capital invested are guaranteed.