Micro Opportunities Fund
Overview
A diversified portfolio of micro-cap (<$500m market capitalisation) Australian companies spread across industries and stages of development. Acorn Capital looks to invest in innovative companies that display sustainable competitive advantage and strong management teams.
Overview
A diversified portfolio of Australian microcap companies.
Acorn Capital (Acorn) constructs microcap portfolios from the full universe of ASX sectors, the full range of company development stages, and both listed and unlisted IPO opportunities.
Overview
Investment management by one of Australia’s most experienced microcap fund manager.
Acorn is the pioneer of Microcap company (Microcap) investing and is Australia’s longest running specialist microcap fund manager.
Overview
Strong fee alignment and capacity management.
- A performance fee will only be paid if the fund’s returns are above both the benchmark and 0%
- Acorn will hard close the fund at $150m, thereby preserving and optimizing return potential for existing investors
The state of play
Unit Pricing.
1.3394
Unit Price (Entry)
March 31 2024
1.3340
Unit Price (Exit)
March 31 2024
MOF
What are Microcaps
Microcaps are amongst the most dynamic companies listed on the Australian stock exchange (ASX). They have a market capitalisation of less than $500 million. Compared to larger capitalisation (Large Cap) companies, Microcaps are typically younger, faster growing, and more innovative. Such companies often report greater increases in sales, profitability, and productivity than older, larger and less innovative companies. Further, they are often require capital to fund higher growth and the fund is positioned to provide growth capital.
MOF
Why Microcaps
Microcap investing provides exposure to earlier stages of a company’s development, with the majority of microcap businesses being in (or about to enter) the growth or expansion stages of their lifecycle. Microcaps also provide exposure to different investment themes than Large Cap. For example, the ASX microcap segment has greater industry diversity and is less concentrated in Financial and Resources companies than the Large Cap segment.
MOF
Investment Objectives
The fund aims to:
- Outperform the S&P ASX Emerging Companies Accumulation Index (the benchmark) over rolling 3 year periods
- Generate its returns with lower volatility than the benchmark
Investment Strategy
Suitable Investors
- Refer to the Target Market Determination (TMD) below for details on investor suitability
- Capital growth through a diversified exposure to Australian microcaps
- An active investment approach
- A long term (5+ year) investment
- A SIV compliant investment
Key Fund Terms
Type
Registered Unit Trust.
Objectives
Exceed the returns of the benchmark over rolling 3 years periods.
Benchmark
S&P ASX Emerging Companies Accumulation Index.
Investment Universe
Australian Equities up to 80-100%, Unlisted Investments, 0-10%, Cash 0-20%.
Stocks #
50-70.
Liquidity
Daily.
Investment timeframe
5+ years.
Distributions
Annually.
Minimum Investment
$20,000
SIV compliant
Management fee
1.20%
Performance fee
20% of returns in excess of the benchmark
Sector limits
Minimum of 5 sectors, Maximum of 20% of the fund’s net assets allowable in any one sector.
Lifecycle stage risk guidelines
Seed/startup 0-5%, Early 10-40%, Expansion 40-70%, Mature 10-20%.
Borrowing
The fund is permitted to borrow up to 5% of NAV to apply to redemptions. Borrowings may not be used to leverage or gear the fund.
Shorting
The fund is long only. The fund is not permitted to short sell securities.
Trustee
Evolution Trustees Limited.
APIR Code
ACQ4764AU.
Platforms
Hub 24, Netwealth, Ausmaq.
The rating issued 12/2023 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
Related Documents
Latest Commentary
Product Disclosure Statement
reference guide
Application Form
Target market determination
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For further information
IMPORTANT NOTICE
This report is published by Acorn Capital Limited (“Acorn”) ABN: 51 082 694 531, AFSL: 227605 and is general information only and is not intended as an offer or solicitation with respect to the purchase or sale of any securities by Acorn or the responsible entity and Issuer. Evolution Trustees Limited (“Evolution”) ABN: 29 611 839 519 AFSL: 486217 is the responsible entity and Issuer of the Fund. Acorn is the investment or fund manager of the Acorn Capital Micro Opportunities Fund (the Fund) ARSN: 673 344 833. This report does not take into account the investment objectives, financial situation or needs of any particular person. Investors should obtain personal financial advice based on their own particular needs and circumstances before making any investment decision. Any person considering investing, holding or disposing of units in the Fund should review the Product Disclosure Statement for the Fund dated 15 December 2023, Reference Guide, Target Market Determination and any other material published by Acorn. This information is available at www.acorncapital.com.au. Evolution and Acorn do not guarantee repayment of capital or any particular rate of return from the Fund. Past performance is no guarantee of future performance. Investment returns have been calculated in accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distributions of income and realised profits. The information is current at the date of publication, and whilst all care has been taken in its preparation, neither Acorn nor Evolution gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this report. Statements in this report have been obtained from and are based upon sources that Acorn believes to be reliable, however Acorn does not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this report are subject to change without notice. Not to be reproduced without permission.
