PURE Resources Fund
The Fund is an absolute return fund which is focused on emerging resources companies, and targets double digit returns over a 3-5 year investment cycle. (For Wholesale Investors Only)
PURE Resources is an absolute return fund which is focused on emerging growth companies and targets double-digit returns over a 3-5 year investment cycle. The Fund’s unique strategy is to invest in self-originated hybrid securities (convertible notes or combined note & warrant structures).
The benefit of the strategy is that it provides investors: capital protection; consistent income; and equity upside. The Fund can generate superior risk-adjusted returns by exploiting the structural and consistent failure of the stock market to provide targeted companies with access to growth capital at a reasonable price.
The Fund predominantly invests in emerging ASX listed resources/mining companies and typically initiates an investment through senior secured debt, with full convertibility into equity. Until converted, the debt carries an interest rate of 8-13%, meaning the Fund gets ‘paid to wait’ for the equity opportunity to mature.
The portfolio is primarily built by transacting directly with a Company after extensive due diligence, using our in-house deal origination, structuring expertise, and legal advisors. As a debt investor, the Fund is afforded more insight into the Company’s operating performance than equity investors.
Superior due diligence and secured debt structures significantly reduces the risk of loss. The interest charged provides consistent returns. The convertibility into equity provides opportunities for material upside. Collectively, these benefits are expected to increase the likelihood of alpha generation, compared to other absolute return strategies or equity portfolios.
At any time, the Fund will the Fund will hold up to 50 positions and is able to invest in equity securities, corporate credit, hybrid securities, options, warrants and cash.
- Targeting market-leading risk-adjusted returns via differentiated economic exposure to emerging companies.
- Entering via credit means the Fund’s capital is higher ranking than equity, thereby protecting investor capital.
- Lower expected Fund unit price volatility, compared to standard equity absolute return funds.
- Credit-level due diligence and rigorous documentation aim to provide superior investment analysis.
- Quarterly income distributions (targeting +7.0% p.a.)
- PURE’s investment team has 100+ years of combined experience in financial markets.
- The PURE team has a substantial investment in the fund which ensures we are aligned with investors.
Click here to view the latest Performance Details.
The information contained in this presentation is produced by PURE Asset Management Pty Ltd (“PURE”) in good faith, but does not constitute any representation or offer by PURE. It is subject to change without notice and is not complete or definitive. PURE does not accept any responsibility, and disclaims any liability whatsoever for loss caused to any party by reliance on the information in this presentation. Please note that past performance is not a guarantee of future performance.
PURE is in the business of issuing managed investment schemes. A product disclosure statement or information memorandum for the managed investment schemes referred to in this presentation can be obtained at www.puream.com.au or by contacting PURE. You should consider the pro duct disclosure statement before making a decision to acquire or continue to hold an interest in the managed investment schemes.
This advice is general in nature and does not consider your individual objectives, needs or financial situation. You should consider your individual circumstances before making a decision about any of the financial products discussed in this presentation.
PURE Asset Management Pty Ltd ABN 46 616 178 771 is the holder of Australian Financial Services Licence no. 520396.
PURE is a specialist boutique fund manager providing investors with access to proprietarily sourced deal flow. In its simplest form, we target investments in companies with attractive growth opportunities that require capital to execute. PURE generally initiate an investment through higher-ranking debt security, yet retain exposure to equity upside through attaching warrants, options or other alternative conversion structures. Under such structures, the investor gets ‘paid to wait’ for the equity investment to mature. The Investment Team look for opportunities where our skill set assists the investment company in unlocking latent equity value. Adopting an index-unaware approach, we invest in the best opportunities, not the largest index weights.
It is our view that outperformance is not generated by following the momentum of the crowd. With broker coverage in structural decline and passive investment rising, price/information dislocations within the emerging companies' universe continue to occur. Good stories are frequently overlooked, while the emergence of passive investment flow only heightens the misallocation of investors’ capital. Our strategy is to work closely with portfolio companies, increase the broader market’s awareness of the validity of the investment theses, and ensure the right companies have access to growth capital at the right time. The emergence of digital communication platforms in recent years further facilitates this strategy.
Among other things, our services to portfolio companies can involve the following:
- Assisting management teams with their corporate strategy and IR messaging.
- Providing capital to pursue growth projects.
- Introductions to other sources of capital.
In addition to alpha generation, our flexible mandate offers greater scope to protect capital. We strive to be the leading emerging companies fund in Australia.
Tim is a Co-Founder of PURE and has over 11 years of experience in both buy and sell side roles within financial markets.
Prior to establishing PURE, Tim was a key member of the investment team at K2 Asset Management, progressing to Portfolio Management duties in 2012 within the K2 Australian Absolute Return, K2 Global High Alpha, and K2 Australian Small Cap Funds.
Prior to joining K2, Tim worked in Institutional Sales and Equity Research roles at Goldman Sachs. He also has an AFL background with a playing career spanning eight years with the Geelong and Western Bulldogs football clubs.
Tim holds a Bachelor of Commerce and a Masters of Applied Finance and Investment.
Nick is a Co-Founder of PURE and has over 16 years of experience in financial markets.
Prior to establishing PURE, Nick was a Small Capitalisation Company Analyst at Petra Capital, a prominent Sydney-based stock broking firm. In this role, Nick was responsible for producing small companies research, and sourcing companies with significant growth optionality yet requiring the capital to execute.
Prior to Petra, Nick was an Executive Director at Nomura Australia. Throughout his career, Nick has had direct coverage of Small Caps, Retail, Food and Beverage, Gaming, Transport, and the Telco sector.
Nick holds a Masters of Engineering.
Mike is a Co-Founder of PURE and has over 28 years of experience in financial markets.
Mike is also a partner with the Fairbairn Partnership, a corporate advisory business established to help companies develop their strategy, improve investor relations, or raise capital.
Prior to this role, Mike was the Head of Industrials Research and a member of the executive leadership team at Petra Capital.
Throughout Mike’s tenure, Petra Capital was involved in raising over $2 billion to assist emerging Australian companies in their growth aspirations. He has worked in senior roles as portfolio manager for the Thorney Investments family office and in several international organisations in London.
Mike holds a Bachelor of Arts and has completed the General Manager Program at the UNSW Business School.
Commencing his career within chartered accounting (KPMG – Brisbane), Dan has been an Equity Analyst with tier one global investment banks for over 15 years, working in both Sydney and London where Dan was formerly a Director with UBS.
Most recently Dan was the Head of Resources research with Wilsons Advisory, based in Sydney. Here Dan analysed resources companies, from early-stage exploration companies, to those breaking into production and larger cap miners.
Dan has also covered the Engineering and Mining Services Sector for over ten years, including contract mining businesses, drillers and EPCM businesses. This background and experience in the sector underpins PURE’s investment approach in this Fund.
Jonathan brings with him over 25 years of experience in financial markets across both stockbroking and funds management. His experience has spanned numerous roles including equities analysis, portfolio management, capital raising, and corporate advisory.
Between 2006 and 2018 he worked as an Equities Analyst for stockbroking groups such as Patersons Securities, Bell Potter, and Petra Capital.
Prior to joining PURE, Jonathan spent 4 years working at Charter Hall as a Portfolio Manager of several funds which invested in listed equities. There, he was also responsible for managing a $50m institutional mandate which outperformed its benchmark by 4.8% annually over three years.
Jean-Luc started his career as a Client Services Administrator with K2 Asset Management, focusing on client engagement and reporting.
Following this, Jean-Luc moved into a Fund Administration role with K2, with a focus on portfolio valuation, trade execution and settlements.
Jean-Luc then moved to an administrative role as an Adviser Assistant with Ord Minnett, where he provided extensive trade execution, settlement and advice support to a group of financial advisers.
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