Elston Australian Emerging Leaders Fund

The Fund is constructed for investors who are looking for exposure to listed Australian equities, and are typically comfortable taking on a higher level of capital risk with the aim of achieving higher levels of growth in the long term. It is designed for investors who:

• are looking for long term capital growth above inflation
• are looking for a non-index weighted portfolio construction, and
• have a minimum investment timeframe of 5 years. 

Significant Benefits

• A small companies specialist with a minimum 90% of the Fund invested in companies outside of the S&P/ASX 100 Index;
• A concentrated portfolio with exposure to a select number of high-quality businesses possessing sustainable competitive advantages and are capable of generating robust levels of earnings growth;
• Experienced and well-resourced investment team managing a structured, team-based investment process; and
• A strongly aligned Investment Manager offering a competitive fee structure. 

The return objective is to outperform the S&P/ASX Small Ordinaries Accumulation Index by 3.0% p.a. after fees on a rolling 5-year basis. 

Investment process

The Elston investment process encompasses five stages:

1. Idea Generation: Quantitative ranking of the investment universe in a consistent and repeatable manner to generate research ideas and focus the research effort;
2. Investment research: Qualitative assessment of each company focused on understanding the structural dynamics, complexity of operations, competitive environment, earnings stability and predictability, balance sheet capacity and management quality;
3. Valuation: Valuation and 5 year expected return calculations using Elston derived financial models;
4. Portfolio construction: Determine target weights in accordance with strict policy guidelines to ensure diversification is achieved across both securities and sectors; and
5. Portfolio management: Ongoing rebalancing to avoid individual position and sector exposures in excess of risk tolerances.

The Fund displays quality and growth style characteristics.

Asset allocation

The Fund invests across Australian shares and cash.

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WARNINGS AND DISCLOSURES: This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.