Acorn Capital NextGen Resources Fund
Wholesale Investors Only

Acorn Capital NextGen Resources Fund

Acorn Capital NextGen Resources Fund
Acorn Capital NextGen Resources Fund
|
Last Updated 02.12.2024

The NextGen Resources Fund provides investors with exposure to a range of commodities such as lithium, the rare earth elements, graphite, nickel, gold, copper, oil, coking coal and gas. (For Wholesale Investors Only)

Acorn Capital NextGen Resources Fund
Min. Investment
$50,000
Objective
Growth
Structure
Managed Fund
Asset Class
Shares/​Equity
Liquidity
Listed
Closing Date
Open Ended
View More Details
Min. Investment
$50,000
Objective
Growth
Structure
Managed Fund
Asset Class
Shares/​Equity
Liquidity
Listed
Closing Date
Open Ended
Industry
Mining, Resources & Energy
Funding Stage
Listed
Security Type
Unit in a trust
Target Capital
$75 million
Availability
Open for investment

Management Fees
1.10% p.a. of NAV
Performance Fees
20% above benchmark with highwater mark
Benchmark
S&P ASX Small Resources Index
Investment Time Frame
5+ Years
Number of Investments
25 - 40
Distributions
Annually

A diverse portfolio of small and emerging companies focused on commodities being positively impacted by global disruptions, such as the clean-energy transition. The Fund is managed by ex-geologists with the technical and financial skills essential for investing in this universe. 

 

Key benefits

The fund will hold up to 40 companies, ranging from explorers to developers and producers with a range of commodities, including rare earths, lithium, graphite, oil and gas. 

 

Investors in the Acorn Capital NextGen Resources Fund receive:

  • Diversified Australian Resource and Energy Exposure 
    Acorn Capital will construct a portfolio of Resources and Energy companies across a mix of explorers, developers, and producers. Investing outside the top 100 listed ASX stocks and in unlisted opportunities the Fund will provide diversification away from bulk commodities such as iron ore.

  • Expertise and access to an experienced team 
    Acorn Capital is the pioneer of microcap and emerging growth investing. It has maintained a specialist Resources and Energy investment team since its inception in 2002. Investors in the Fund will benefit from 20 years of institutional memory and sector learnings.

  • Strong fee alignment and capacity management 
    A performance fee will only be paid if the fund’s returns are above the benchmark and 20%. The fund will hard close at $100m, optimising returns for investors.

Initial desktop reviews use Acorn’s proprietary database to screen more than 1,300 companies, which collectively hold more than 6,700 underlying resources and energy projects. These results will be used to identify an initial group of attractive investment opportunities according to commodity type and stage of development (i.e., production, development or exploration).

 

The qualitative assessment of companies and their projects is the next important step in the investment process. This involves understanding a range of characteristics of the deposit(s) that may affect their suitability for economic development. Part of this review includes site visits and meetings with senior technical staff to investigate details behind resource estimations, mine plans, processing designs and issues related to environmental and government licensing, where applicable. Other factors considered are sustainability, competitive advantage (inclusive of ESG factors), industry position, capital needs, management, financial metrics and valuations.

 

The final step involves selection of the most attractive investment opportunities. Portfolio construction and risk management will have regard to the exposure to individual commodities and the stage of development (i.e. Lassonde Curve) of the underlying companies.

 

Once invested, the Fund will contain an attractive mix of assets sourced from the entire investment universe yet will be diversified by commodity type and stage of development.

  1. An initial desktop review leverages Acorn Capital’s proprietary database to screen more than 1,300 companies, which collectively hold greater than 6,700 underlying resources.
  2. A qualitative assessment of companies and their project/s is conducted. This involves a detailed review of deposit/s and their suitability for economic development.
  3. Post the quantitative and qualitative review a ranking process is used to select the most attractive investment opportunities for the Fund.

 

Acorn Capital’s development stages applied to the Lassonde Curve – illustrating changes in the values of stocks from exploration to mining.

 

Acorn Capital was established in 1998 as an active, long-only fund manager specialising in emerging Australian companies. Acorn Capital has a large research and investment team covering all industries across public and private markets.

The team manages money for a range of clients, including large pension and superannuation funds, high net-worth wholesale investors, family offices, retail and advised clients.

 

 

Rick Squire is a Portfolio Manager for the Energy and Materials – Resources sectors. He is a geologist with over 25 years of experience in the resources industry, including 12 years in mining finance and investment.

 

Rick joined Acorn Capital 6.5 years ago after working at Deutsche Bank and TrailStone Group. Prior to this, Rick was a Research Fellow at The University of Melbourne and Monash University where he held industry-supported positions investigating the genesis of world-class gold and base-metal deposits.

 

Rick holds a Bachelor of Science (Hons) from Monash University and a PhD (Geology) from The University of Tasmania.

 

Karina Bader is the Analyst conducting the fundamental investment research on companies & selecting investments for client portfolios in the Resources and Energy sectors. Karina joined Acorn Capital in 2009.

 

A geologist by training, Karina’s career began over 25 years ago as a project geologist with resource companies and consultants primarily in gold exploration.

Karina holds a Bachelor of Science (Hons) from Monash University, a Master of Business Administration (Tech Mgt) from Deakin University and is a graduate of the AICD directors' course.

 

Kate McDermott is the Head of Distribution for the Acorn Capital wholesale funds. She began her career at Credit Suisse Asset Management in 2003, which later became Aberdeen Asset Management. 

 

Kate has also worked at BlackRock as State Manager and Realm Investment House as Head of Distribution. Kate holds a Bachelor of Economics from the University of Tasmania and a Diploma in Financial Planning from Deakin.

Click here to view our Investment Memorandum.

Click here to view our Fact Sheet.

Click here to view the latest Investment Update.

Click here to view the latest Quarterly Update.

Click here to view the latest News and Insights.

If you have joined Investment Markets (which is free) and verified your email address, you can send an email directly to us either by: -

 

  • Selecting “Enquire” when viewing the card relating to the listing, OR

 

  • By completing the enquiry form on the left hand side when viewing the detail of a listing

 

We will respond using your preferred communication method (i.e. email or phone).

Want More Information?

Phone
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
By submitting this form, you agree to our Terms and Conditions

Statutory Statement

This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.

General Disclaimer

IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE

Information on this site is intended for Australian users only.

This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.

Subscribe to our newsletter

Elevate your investment game with our exclusive weekly newsletter, curated for astute investors like you. Dive into deep market insights and uncover a purposely broad range of unfiltered opportunities. Join a community that thrives on informed choices. Don't just follow the market—lead it.