Australian Value Trust - Hunter Hall Investment Management

Hunter Hall Investment Management Limited
ABN 69 063 081 612 AFSL 219462
ABN
Hunter Hall
Australian Value Trust
HUNTER
HALL
Fact Sheet
30 September 2014
ETHICAL
MANAGED FUNDS
Investment Philosophy
KEY FACTS
Investment Manager:
Inception Date:
Investment Objective:
Territory:
Ethical Policy:
Recommended
Investment Horizon:
Fund Size as at
30 September 2014:
Minimum Initial
Investment:
Distributions(1):
Entry Fee:
Management Fee:
Management Fee
Rebate(2):
Performance Fee:
Advisor Remuneration(3):
MER to 30 June 2014
– inc. Performance Fee(4):
MER to 30 June 2014
– exc. Performance Fee(4):
Regular Savings Plan:
Hedging Policy:
Hunter Hall Investment
Management Limited
29 November 2001
To substantially outperform the
S&P/ASX Small Ordinaries
Accumulation Index (Small Ords), over
the medium to long term without
incurring significant risk to capital
Domestic (Australia and New Zealand)
Negative screen
5 years+
$36.8m
$5,000
30 June and 31 December
4% of which all may be rebated
Nil for Class B unitholders
1.80% per annum
0.35% per annum
15% of any return greater than the
S&P/ASX Small Ordinaries Accumulation
Index (Small Ords), payable half yearly
Nil
2.26%
2.26%
Yes - minimum $200 per month
No
1 Distributions are only payable when there is net income to distribute.
2 The Management Fee Rebate can be accessed by wholesale investors, or by investors
who can access the Trusts via IDPS platforms such as Master Trusts or Wraps.
3 Hunter Hall may pay an ongoing commission to your financial advisor of 0.35% p.a.
provided the arrangement with the advisor meets the grandfathering provisions or
otherwise satisfies the requirements of Part 7.7A of the Corporations Act 2001 (Cth)
(FoFA legislation). The commission is paid by Hunter Hall and is not an additional
fee incurred by Unitholders.
4 Based on audited figures.
CONTACT DETAILS
Hunter Hall Investment Management Limited
Street address
Level 2, 56 Pitt Street, Sydney Australia
Postal Address
GPO Box 3955, Sydney NSW 2001 Australia
Investor Relations
Telephone
1800 651 674
0800 448 305 (New Zealand callers)
+61 2 8224 0300 (international callers)
Facsimile
+61 2 8224 0333
Email
[email protected]
Website
www.hunterhall.com.au
• Equities offer the potential for superior investment
returns versus other asset classes over the long term.
• Value investing is an approach intended to create
excess returns over the long term.
• Small and mid-size companies have generally
outperformed large companies over the long term.
• Hunter Hall is a thought leader in ethical/sustainable
funds management.
Objectives of the Fund
The objective of the Hunter Hall Australian Value Trust (AVT)
is to increase the wealth of its investors by substantially
outperforming the S&P/ASX Small Ordinaries
Accumulation Index (Small Ords) over the medium to
long term without incurring significant risk to capital.
Furthermore, the Fund follows an Ethical Investment
Policy which seeks to avoid investment in companies that,
in our opinion, are harmful to people, animals or the
environment.
Investment Strategy
• The Fund is managed by Jonathan Rabinovitz, who has
29 years of industry experience. Jonathan is supported
by an experienced team of investment professionals.
• The AVT is managed using a ‘value’ investment style
based on fundamental analysis of individual companies.
• The AVT invests in small and mid-size companies listed
on the Australian Securities Exchange and excludes
large companies listed on the S&P/ASX 100 and NZ20.
• A highly concentrated portfolio of typically no more
than 60 stocks.
• The total size of an investment in any one company
will not exceed 10% of the market value of the AVT’s
portfolio.
• The Fund will be fully invested, with its cash holding
limited to 10%.
H U N T E R H A L L A U S T R A L I A N VA LU E T R U S T
Ethical Investment Policy
Hunter Hall is committed to the concept of responsible investing. The Ethical Investment Policy of the AVT involves
applying a negative screen to investments. This screening process seeks to avoid investment in companies that derive
operating revenues from direct and material business involvement in the manufacture or sale of weapons and weapons
components, tobacco manufacture, gambling outlets or systems, intensive animal farming, animal testing for cosmetics,
activities that give rise to human rights violations, unremediated destruction of the environment, uranium mining and
nuclear reactors and the exploration, production, refining, storage and transportation of fossil fuels.
Performance at 30 September 2014
The Australian Value Trust (AVT) was launched on 29 November 2001. As at 30 September 2014, it has recorded a
compound annual return since inception, net of expenses, of 7.3% outperforming its benchmark, the S&P/ASX Small
Ordinaries Index (Small Ords) by 1.7% p.a.
Relative Performance of the Australian Value Trust
Compound Annual Returns
to 30 September 2014 (%)
Value of $10,000
invested
at inception
1 Year
3 Years
5 Years
7 Years
10 Years
Since inception
(29.11.2001)
Australian Value Trust
Small Ords
2.2
-0.1
3.5
1.7
1.1
-0.3
-0.7
-5.2
4.3
3.6
7.3
5.6
$24,653
$20,166
Relative Performance
2.3
1.8
1.3
4.5
0.7
1.7
$4,487
All Ords
5.9
14.0
6.7
1.2
8.2
8.2
$27,676
Source: Hunter Hall. Past performance is no guarantee of future performance and no guarantee of future return is implied.
Financial Year-end Returns
AVT Relative Performance Since Inception
$30,000
$25,000
AVT
$24,653
$20,000
Small Ords
$20,166
$15,000
$10,000
$5,000
Period (% pa)
AVT
Small
Ords
Relative
Returns
Year to June 2014
Year to June 2013
Year to June 2012
Year to June 2011
Year to June 2010
Year to June 2009
Year to June 2008
Year to June 2007
Year to June 2006
Year to June 2005
Year to June 2004
Year to June 2003
14.8
-7.2
-11.0
17.1
25.8
-23.0
-13.3
38.4
17.9
4.7
23.0
-8.8
13.1
-5.3
-14.6
16.4
11.2
-28.6
-20.5
44.4
25.5
27.4
26.8
3.7
1.7
-1.8
3.6
0.7
14.6
5.6
7.2
-6.1
-7.6
-22.7
-3.8
-12.5
Nov Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Sep
01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14
Source: Hunter Hall. The graph above represents the value of $10,000 invested in the Australian
Value Trust on 29 November 2001 compared to the Small Ords and the All Ords.
FA C T S H E E T – 3 0 S E P T E M B E R 2 0 1 4
H U N T E R H A L L A U S T R A L I A N VA LU E T R U S T
Portfolio
Sector Allocation at 30 September 2014
Top 10 Holdings at 30 September 2014
Company
Main Business
% of Net Assets
Country at Market Value
IOOF
financial services
Australia
5.5
Australia
5.2
M2 Telecommunications telecommunications
RCR Tomlinson
engineering services
Australia
4.4
Cedarwoods
real estate development
Australia
4.0
Ardent Leisure
leisure and entertainment
properties
Australia
3.6
Fletcher Building
building materials
New Zealand
3.6
Sirtex Medical
liver cancer treatments
Australia
3.6
Mortgage Choice
mortgage broking
Australia
3.4
McMillan Shakespeare
salary packaging
Australia
3.4
Slater & Gordon
insurance law
Australia
3.3
Total Investments
Net Liquids 5.4%
Telecomms Services 6.1%
Consumer
Discretionary
30.5%
Materials 9.9%
Information
Technology 2.3%
Industrials 16.6%
Health Care 6.0%
Financials
23.1%
94.6
Net Liquids
5.4
Total Portfolio
100.0
Number of companies held
43
Net Assets
$36.8m
Hunter Hall Awards
Date
May 2011 Hunter Hall Ethical/SRI Manager
Money Management/Lonsec Fund Manager of the
Year 2011
Jul 2008
Distributions
Distributions can only be paid when there is net income to
distribute as determined semi-annually. The June figures
shown below include the distribution for the preceding
December distribution if applicable.
Cash
per unit
30 June 2014
30 June 2013
30 June 2012
30 June 2011
30 June 2010
30 June 2009
30 June 2008
30 June 2007
30 June 2006
30 June 2005
30 June 2004
3.32c
4.68c
8.16c
5.78c
0.75c
1.96c
12.21c
17.52c
16.45c
17.29c
10.06c
Hunter Hall Best International Small Cap Shares
AFR Smart Investor Blue Ribbon Awards 2008
Feb 2008 Hunter Hall International Equities
Finalist – Morningstar Fund Manager of the
Year 2007
Jul 2007
Hunter Hall Best International Small Cap Shares
AFR Smart Investor Blue Ribbon Awards 2007
Feb 2007 Hunter Hall International Equities
Finalist – Morningstar Fund Manager of the
Year 2006
Distributions
For the year ended:
Awarded to Award
Australian
Franking Foreign
Credits Tax Credits
per unit
per unit
2.25c
0.62c
0.85c
1.43c
1.07c
1.23c
1.57c
1.94c
1.88c
1.02c
0.33c
0.06c
–
–
–
–
–
–
–
–
0.04c
–
Sep 2006 Hunter Hall Boutique Fund Manager of the Year
Finalist – S&P Fund Awards 2006
May 2003 Hunter Hall Fund Manager of the Year – Finalist Rising Star
Money Management – ASSIRT Fund Manager of
the Year Awards 2003
Feb 2002 Hunter Hall Morningstar Emerging Fund Manager of the
Year 2002
DISCLAIMER
Initial applications for units can only be made on an Application Form found in the current Product Disclosure Statement for the Hunter Hall Funds. Hunter Hall Investment Management
Limited (AFSL: 219462) or any related entity does not guarantee the repayment of capital or any particular rate of return from the Funds. Investment returns have been calculated in
accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distribution of income and realised profits. This Fact Sheet does not take
into account a reader’s investment objectives, particular needs or financial situation. It is general information only and should not be considered as investment advice and should not
be relied on as an investment recommendation.
FA C T S H E E T – 3 0 S E P T E M B E R 2 0 1 4
Kindness Excellence Respect
ntegrity Generosity Kindnes
Excellence Respect Integrity
enerosity Kindness Excellenc
Respect Integrity Generosity
Kindness Excellence Respect
ntegrity Generosity Kindnes
Excellence Respect Integrity
enerosity Kindness Excellenc
Respect Integrity Generosity
Kindness Excellence Respect
ntegrity Generosity Kindnes
Excellence Respect Integrity
enerosity Kindness Excellenc
HUNTER
HALL
ETHICAL
MANAGED FUNDS
Hunter Hall Investment Management Limited
Investor Relations 1800 651 674
New Zealand callers 0800 448 305
International callers +61 2 8224 0300
www.hunterhall.com.au
Printed on recycled paper. ISO 14001 Environmental Accreditation.

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