Prime Value Equity Income Fund
To provide regular tax-effective income, combined with competitive capital growth over the medium to long term.
Regular income and capital growth opportunity for tax-savvy investors
The Fund objective is to capture both dividend and capital growth components of an equity investment. Dividends typically form the more stable and predictable part of the total return. We believe the Fund offers a very attractive risk-adjusted return.
The Australia market’s dividend yield is around 4+% which is attractive compared to other cash type investment returns or global market yield.
Much of the dividends has franking or imputation credits attached, which can be used to offset the investors’ tax payable. The Fund currently has capital losses carried forward from prior years which will offset any capital gains made in the near term.
The Fund typically holds around 30 names, most of which are dividend paying. We look for good businesses that are easy to understand, with resilient and transparent business models, run by solid management & effective Board.
The Fund is long-only, invests in equity or cash. It is not complicated by any derivative overlays. Unit pricing is available daily.
Quarterly in cash or reinvestment option is available.
Click here for the latest performance and unit prices.
The following are the four pillars of our investment philosophy:
Stewardship: We take our role as stewards earnestly and value our responsibility to investors – putting our clients first. Co-investing alongside our investors ensures a true alignment of interest.
Quality investing requires a balance between Art and Science: Prime Value enjoys the flexibility of being a style neutral manager because it allows us to select stocks from across the ASX. This independent approach has delivered for over 14 years and means our process is not easily replicated.
When evaluating investment opportunities, we focus on good companies selling below intrinsic value. We judge stocks based on investment fundamentals while also taking into account macro economic data, corporate financial reports, industry data and comments from corporate officers to determine whether a stock is under or over-valued.
Prime Value believes all economic and financial tests require flexibility, depending on the phase in the economic cycle or the type of stock. There is no standard way of identifying winners or losers in the stock market. Experience and common sense dictate how the formula must be adapted to determine the appropriate investment decision for each security.
Analysis is the first step in investing; however interpretation and judgment are equally important.
Minimising mistakes: Minimising mistakes is our number one imperative. We must remember investment decisions are based on market views and intelligence that is often faulty, and on research that is never complete and error-free.
Managers therefore live and die on their own judgments. This may seem to be lacking the heroics of picking big winners, but in practice the Investment Manager who makes the fewest mistakes usually produces superior results. Our research efforts are focused as much on avoiding losers as identifying winners.
Benchmarks are inefficient: Benchmarks are a good way to get a feel for how well the market in general has performed, but they are not necessarily a good model for how to build a portfolio of stocks. At Prime Value, our main focus is on good companies selling below their intrinsic value regardless of their weighting in the benchmark or whether they are large, mid, small or micro cap stocks.
The ability to consider “all caps” allows us opportunities often overlooked by major fund managers and stockbrokers. There
are good reasons to look beyond the obvious. Stocks outside the ASX 100 are less influenced by trading and market factors
and are more suited to detailed fundamental analysis as the basis for investment selections.
Our portfolios are constructed based on the expected return characteristics of the individual companies without reference to their size. We invest in a “market of stocks”, free of benchmark constraints.
The information contained in this document is general in nature and has no regard to the specific investment objectives,
financial or particular needs of any specific recipient. It is not intended to constitute investment advice or a personal
securities recommendation. This presentation is not an Information Memorandum (IM) or a Product Disclosure Statement
(PDS) or an offer of units and contains a brief overview of the investment only. Any prospective investor wishing to make an
investment in the Fund must obtain and read the relevant IM or PDS (particularly the risk factors discussed) and complete an
application form attached to the IM or PDS. Neither Prime Value Asset Management Limited nor its associates or directors,
nor any other person, guarantees the success of the Prime Value Funds, the repayment of capital or any particular rate of
capital or income return, or makes any representation in relation to the personal taxation consequences of any investor’s
investment.
Prime Value is a multi-award winning boutique Australian equities manager with an impressive history of building wealth with investors since 1998. As Responsible Entity of the Prime Value Equity Income Fund, it holds an Australian Financial Services License that authorises it to operate managed investment
schemes. Prime Value is responsible for the management and administration of the Fund and sets the investment policies and objectives.
A Manager for All Seasons
Prime Value is a “style neutral” manager investing in Australian equities that is best considered to be a manager for all seasons. Prime Value launched the Prime Value Equity Income Fund in 2001 and the Fund has paid excellent tax effective income distributions since its inception.
Prime Value’s stable, talented investment team has navigated many market cycles and a wide variety of investment situations. The team has considerable experience in the corporate sector; an advantage which means Prime Value speaks the language and asks the right questions of companies when considering investment.
This experience has also taught us that investment is more than just science, mathematics and statistics. Art and intuition, which come from experience and skill, also play an important role.
Prime Value’s unique style is not easy to pigeon-hole and not easily replicated. We believe that this willingness to follow our own path, combined with a strong culture and sense of stewardship, has driven our consistent record.
Alignment of interest
Prime Value and its investment team are cornerstone investors in Prime Value Funds and have a true alignment of interest with other investors. As fellow investors, we demand superior returns for accepting the investment risk – not just the average return of the market. In this way, “Building Wealth Together” is more than just a slogan; it is the heart and soul of Prime Value.
A strong belief in “stewardship” – that managing money for others is an important responsibility – underpins our culture. This means a focus on absolute, after-tax performance and a clear priority of minimising mistakes.
Leanne is the Portfolio Manager, responsible for the formulation of investment policy and process development, portfolio strategy and construction, and fundamental company research.
She has over 25 years’ experience in the investment industry, with a successful track record.
Prior to joining Prime Value in 2004, Leanne was Portfolio Manager for the Orica Superannuation Fund, responsible for the active management of the $400 million Australian equity portfolio.
Previously she was Portfolio Manager for the Shell Australia Superannuation Fund and managed the successful and sizeable Australian equity component of this fund in the 1990s.
Leanne has a degree in Economics, an MBA and is a CFA.
Click here for the latest fund updates.
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).
Tags
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. 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.