Vertium Equity Income Fund
The Fund is designed for investors looking for lower risk equity market exposure or those drawing down on their savings.
The Vertium Equity Income Fund is a conservative investment option designed to provide consistent income and moderate capital growth. Targeting Australian quality companies with attractive valuations, the fund aims to outperform the S&P/ASX 300 Accumulation Index in terms of income, while managing risk through a margin-of-safety approach.
By utilising fundamentally sound companies and option strategies, the fund seeks to generate higher income than the benchmark index. This makes it suitable for investors who prioritise income over short-term capital gains, such as retirees or those drawing down on their savings.
Vertium's disciplined investment process, focused on loss avoidance and value-based investing, provides a solid foundation for achieving long-term investment goals.
Designed for investors looking for lower-risk equity market exposure or those drawing down on their savings, such as retirees, the Vertium Equity Income Fund (the Fund) is a portfolio of quality Australian companies with attractive valuations that pays consistent and sustainable distributions.
Over the long term, the Fund seeks to deliver investors relative to the S&P/ASX 300 Accumulation Index:
- Higher level of income than the Index
- Lower volatility and drawdown than the Index
- Potential for capital growth over the medium to long term (net of all fees)
Vertium's investment process seeks to identify high-quality listed companies that are attractively priced.
Investment Philosophy
Vertium believes that over the long term a company’s share price will reflect its fundamentals. In other words, markets are roughly efficient. However, in the short-term share prices and fundamentals can disconnect to create inefficiencies and mispriced opportunities. Specifically, over shorter time frames stock prices can overreact or underreact to changing fundamentals.
Investment Process
Vertium’s investment process is designed to identify companies where there is a disconnect between perceived quality and their value in the future. Essentially, the active investment approach is designed to:
Avoid high risk mispriced stocks:
- value traps (market underreaction to negative fundamentals), and
- expensive stocks (market overreaction to positive fundamentals)
Search for low risk mispriced stocks:
- bathwater babies (market overreaction to negative fundamentals)
- neglected orphans (market underreaction to positive fundamentals).
Vertium’s investment process also incorporates a conservative option strategy that generates additional income for the portfolio.
The combination of identifying mispriced companies with a highly focused income strategy results in a portfolio of 20-40 stocks.
Portfolio Construction
Vertium’s portfolio construction process has a strong focus on ensuring the right blend of stocks and option income to deliver its objectives across multiple dimensions (high yield, low volatility, and reasonable capital growth over time).
The blend of dimensions is important as too much emphasis on in high yield stocks may increase portfolio volatility, while over-exposure to low volatile stocks that act like cash will likely dampen returns.
Outcomes
Vertium’s distinctive approach delivers superior risk-adjusted returns relative to other high-income funds.
This material has been prepared by Associate Global Partners Limited (AGP) ABN 56 080 277 998 and AGP Investment Management Limited (AGP IM) ABN 26 123 611 978, AFSL 312247. AGP IM is a wholly owned subsidiary of AGP, a financial services business listed on the ASX (APL). This material is for general information purposes only and does not take into account the specific investment objectives, financial situation or particular needs of any specific individual. As such, before acting on any information contained in this material, individuals should consider whether the information is suitable for their needs. This may involve seeking advice from a qualified financial adviser. Copia Investment Partners Ltd (AFSL 229316, ABN 22 092 872 056) (Copia) is the Responsible Entity of the Vertium Equity Income Fund. A current Product Disclosure Statement (PDS) is available by visiting vertium.com.au. A person should consider the PDS before deciding whether to acquire or continue to hold an interest in the Fund. Any opinions or recommendations contained in this material are subject to change without notice and Copia is under no obligation to update or keep any information contained in this material current.
Established in 2017, Vertium Asset Management is a Sydney-based Australian equity fund manager.
Vertium founder Jason Teh successfully managed a portfolio with a similar investment style at another Australian fund manager, before launching Vertium.
Vertium was created to fill a perceived void in the market for retirement portfolios: a strategy that can provide income (and capital growth potential) from investing in Australian shares, with a genuine focus on capital preservation and lower sensitivity to volatile market movements.
Jason founded Vertium Asset Management in 2017 and has around 20 years’ Australian equity investment management experience. He leads Vertium’s investment team and is responsible for the firm’s investment philosophy, process and portfolio management.
Before establishing Vertium, Jason was a Senior Portfolio Manager at Investors Mutual. He was the architect of the Investors Mutual Equity Income Fund, which he successfully managed for almost six years. As the second-longest serving employee at Investors Mutual spanning over 16 years, he had a variety of roles including managing a share of the Investors Mutual Australian Share Fund and as an Equity Analyst and Senior Quantitative Analyst.
Daniel joined Vertium Asset Management in 2017 as a Portfolio Manager / Equity Analyst and brings with him nearly 15 years’ Australian equity investment management experience. At Vertium, Daniel assists the CIO and is responsible for researching and analyzing Australian companies.
Prior to Vertium, Daniel was a Senior Equities Analyst / Portfolio Manager at Forager Funds where he was responsible for assisting with Forager’s Australian equities portfolio.
Before Forager, Daniel held similar roles at Morningstar, Northward Capital, Investors Mutual, Cannae Capital and MMC Asset Management.
Trent joined Vertium in 2017 as an Equity Analyst. He has around seven years’ investment management experience. At Vertium, Trent is responsible for researching and analyzing Australian companies.
Before joining Vertium, Trent was a Trader at Franklin Templeton Investments Australia and an Investment Analyst at Mercer Investments.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.associateglobal.com/funds/veif/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
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.
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