Investment Strategy

OPIS Investment Management will invest in a diversified portfolio of ASX listed securities similar to those included in the S&P/ASX 200 Index that exhibit attractive growth and income characteristics, believing it can deliver better investment returns than the benchmark returns.

All of the portfolio positions are subject to intensive research and constant investment reviews.

Portfolio structure

Typically:

• The 200 Fund will hold between 20 and 40 listed securities
• The 200 Fund will not be more than 5% over index weight in any one security
• The 200 Fund will not own more than 7.5% of the capital in one company
• The 200 Fund will only invest in securities listed, or about to be listed on the Australian Stock Exchange (‘ASX’)
• The 200 Fund will not short sell securities
• The 200 Fund will not use derivatives
• The 200 Fund will let the cash levels build up if it cannot find attractive equity investments. If appropriate, the 200 Fund may be 20% invested in cash.

Investment Process 200 Fund

CHARACTERISTICS OF OUR INVESTMENT STRATEGY

With the S&P/ASX200 Index as a benchmark, we will apply our established ‘bottom-up’ investment process combining operational, valuation and liquidity risk assessments to make investments in companies. In aiming to achieve superior returns, we will take positions in the Fund from time to time that deviate from the neutral benchmark position when we believe it to be of superior value in terms of potential capital or income growth. In order to minimise tracking error (i.e. the risk of the Fund generating a return significantly away from the Index), we will invest in-line with the Index weighting where we do not have a strong view on the investment valuation of a company and it has a significant weighting in the Index.

IDENTIFICATION

Investment ideas are obtained from many sources including Stockbrokers, Journalists, other Fund Managers, Corporate Financiers, Business Associates, company announcements, press articles and journals. Our active involvement with many of Australia’s global, domestic and regional stockbroking firms enable us to directly access vast quantities of information and a significant number of corporate transactions, from a wide range of market participants. We will seek to take advantage of these information and transaction flows to generate above Index performance.

STOCK-SPECIFIC APPROACH

We take a stock-specific, bottom-up approach to our investments and do not have a particular style bias. We will invest in different stocks for different reasons whether that be value, growth, yield or a combination of those factors.

LONG-TERM FOCUS

We take a long-term view of investments with the majority of the investments in the OPIS 200 Fund made on the basis of the expected returns to be achieved over the long term of 18 months or more.

TRADING OPPORTUNITIES

Given the liquidity of S&P/ASX200 companies, the OPIS 200 Fund will, at times, seek to take advantage of shorter-term ‘trading’ opportunities which we believe are presented in the market.

back to the top

Inception Date
May 2005

Recommended Time
3 - 5 years +

Potential for Income
Medium

Potential for Capital Growth
Medium - High

Application / Redemption
Daily

Buy / Sell Spread
0.30%

Performance Fee
10.25% when fund return is positive

Performance Hurdle
S&P /ASX 200 Accumulation Index

Management Fee
0.82% pa

Distribution
Quarterly (March, June, September and December)

Minimum Investment
$5,000

Minimum Additional Investment
$1,000

Savings Plan
Yes (minimum $100 per month)

Reporting
Monthly

Entry/ Exit fees
Nil