The Elvest Fund

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The Elvest Fund is a long only, small cap Australian equities fund. The Fund typically invests in 20-40 companies that are outside of the S&P/ASX 100 at the time of initial inclusion.

The objective of the Fund is to provide strong absolute returns to investors, while also outperforming its S&P/ASX Small Ordinaries Accumulation Index benchmark over the long term.

The objective of the Fund is to provide strong absolute returns to investors, while also outperforming its S&P/ASX Small Ordinaries Accumulation Index benchmark over rolling 5-year periods. The Fund will typically invest in between 20 and 40 small-cap companies, while up to 10% of the portfolio may be invested in unlisted securities.

We seek to exploit market inefficiencies typically more prevalent outside the S&P/ASX100 Index.

Elvest Co believes that attractive long-term returns can be achieved through the implementation of a disciplined investment process, using bottom-up fundamental analysis and with a focus on high-quality emerging leaders.

Investment Process

Screen: Total universe (2200 companies)
Screen out S&P/ASX100 constituents, nano-caps, unsustainable & speculative companies.

Review: Investible universe (500 companies)
Proprietary review of business model, industry position, management, and financial metrics.

Analyse: Long List (75 companies)
A deeper review of companies that meet most or all desired investment criteria.

Due Diligence: Short List (up to 25 companies)
Conduct detailed due diligence on 10 to 25 companies, including final investment reports and financial modelling.

The Fund will typically hold between 20 and 40 securities. Portfolio weightings will typically range from 1% to 8% with the average cash position over the longer term expected to be no more than 20%.

No individual position will be more than 10% of the Net Asset Value of the Fund (at cost). Risk will be managed via diligent execution of a process focused on high quality companies and sensible portfolio diversification.

We retain flexibility to hold elevated levels of cash during extreme events (cash range of 0% to 30%). Portfolio liquidity will be monitored and measured on a regular basis.

Derivatives, short selling, and gearing will not be used by the Investment Manager.

Elvest Co’s focus is small cap investing. Under researched and under-owned by large institutions, the small cap market provides opportunities to generate strong absolute returns over the long term. Our bottom-up research and company visitation program results in an actively managed portfolio of 20 to 40 high quality Australian businesses offering dynamic growth.

We target companies that have:

• Emerging industry leadership: Companies with industry leading products and services often build a durable economic moat that, in time, is reflected in superior profitability.
• Strong balance sheet: Well-funded companies have more flexibility to invest in their growth objectives, while also having a degree of protection against setbacks.
• Cash generation: Highly cash generative companies can reinvest consistently, supporting higher per share value creation.
• Aligned management: With an emphasis on owner managers and founders, we invest alongside trustworthy managers that are focused on the company.
• Large opportunity sets: High quality emerging companies often grow into large market opportunities, delivering compounding returns over longer periods.

Within small cap equities, market pricing is at its most inefficient, and we occasionally see obvious departures from underlying value. By owning companies at a discount to our assessed value, we increase the probability of a successful investment outcome.

The Elvest team has employed the same strategy in managing various small-cap portfolios since 2011. This includes a Private Small Cap Trust from July 2011 to August 2016, and a wholesale Small Cap Fund from April 2017 to December 2021.

For informational purposes only, the above historical track record return profile chart references the net return (after all fees and expenses) of the wholesale Small Cap Fund only, representing the period of April 2017 to December 2021:

Strategy Return (Gross) of 20.6% p.a.
Strategy Return (Net) of 17.7% p.a.
ASX Small Ordinaries Accumulation Index of 11.7% p.a.

Unless otherwise specified, performance is calculated after all fees and costs, including the Investment Management Fee and Performance Fee. The information has been prepared for the purpose of providing general information, without considering your objectives, financial circumstances or needs. You should obtain and consider a copy of the Information Memorandum relating to the Fund before deciding to invest.

While the information has been prepared with all reasonable care, Elvest Co makes no representation or warranty as to the accuracy or completeness of any statement in this information including any forecasts, nor does Elvest guarantee the performance of the Fund or the repayment of any investor’s capital. To the extent permitted by law, neither Elvest, including their employees, consultants, advisers, officers, or authorised representatives, are liable for any loss or damage arising as a result of reliance placed on the contents of this report. Past performance is not indicative of future performance.

This report was prepared by Elvest Co Pty Limited (‘Elvest’), AFSL No: 547262, the investment manager of The Elvest Fund.

Elvest Co Pty Limited (ABN 65 657 018 614, AFSL 547262) is the Investment Manager of the Fund. Fundhost Limited is the issuer and trustee of the Fund.

Your access to this website is subject to these terms and conditions (Terms) and by using this website you agree to the Terms.

This website and the products and services described may be amended at any time without notice.

Elvest is authorised to provide financial services to wholesale clients only (as defined under s761G or s761GA of the Corporations Act 2001 (Cth)). This website is not designed to provide personal financial product advice to any person. No aspect of this website takes into account the objectives, financial situation or needs of any person. Before making an investment decision, you should read the relevant offer document and (if appropriate) seek professional advice to determine whether the investment is suitable for you.

Any managed investment fund product (Fund) offered via this website is offered via an information memorandum which contains all the details of the offer. Before making any decision to make or hold any investment in the Fund you should consider the information memorandum in full. An investment may achieve a lower than expected return and investors risk losing some or all of their principal investment. Past performance is no indication of future performance.

This website does not constitute an offer to sell or a solicitation of an offer to buy any product or service in any jurisdiction (i) in which such offer or solicitation is not authorised, or (ii) in which the person making the offer is not qualified to do so, or (iii) to whom it is unlawful to make such offer or solicitation.

Elvest makes no representation or warranty as to whether the content of this website is accurate, complete or up to date. To the maximum extent permitted by law, Elvest will not be liable in any way for any loss or damage suffered by you through use or access to this website, or Elvest’s failure to provide this website. Any projections contained in this website are estimates only and may not be realised in the future.

Except where necessary for viewing the information on this website on your browser, no content from this website may be reproduced in any manner, and no further dissemination of it is permitted, without the express written consent of Elvest. The copyright on all information contained on this site is owned by Elvest.

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