Investment Objective

The objective of the OC Concentrated Equity Fund is to generate positive returns through a portfolio of; concentrated fundamental investments, emerging companies where we have strong views on management and future earnings growth, and short-term trading opportunities.

Investment Strategy

The investment strategy has three important elements:

1. to make meaningful investments in what we consider to be the best fundamental investment opportunities;
2. to make smaller investments in emerging companies, that whilst higher risk, may make substantial returns over the medium term; and
3. to take short-term (long and short) positions in trading opportunities

Portfolio structure

Typically the Concentrated Fund:

• will hold between 20 and 40 listed securities;
• will only invest in securities listed, or about to be listed on. ASX;
• will not own more than 7.5% of the capital in one company;
• will not use derivatives;
• may short sell securities; and
• may allow the cash levels build up if sufficiently attractive investment opportunities are not available.

Fund Investments

The Fund’s investments are expected to vary widely according to OC’s view of current investment opportunities and prevailing market conditions.

The Fund’s investments are expected to include:

• medium-term investments in ASX-listed securities based on OC’s view of superior fundamental value;
• medium-term investments in emerging companies stocks that are expected to grow significantly in the medium–term;
• short-term investments in ASX-listed securities believed to have a catalyst for re-rating;
• subscriptions to company placements and sell-downs;
• subscriptions to Initial Public Offerings (‘IPO’s’);
• investments in companies subject to takeover or other public price sensitive corporate activity;
• underwriting and/or sub-underwriting agreements;
• short positions in securities thought to be ‘over-valued’; and
• bank deposits, bonds and other interest bearing investments.

As the Fund will take an active approach to many of its investments, it may employ, where deemed appropriate by OC, ‘stop-loss’ orders against specific investments.

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Inception Date
20th Nov 2003

Recommended Time
3 - 5 years +

Application / Redemption
Monthly

Buy / Sell Spread
0.30%

Performance Fee
10.25% subject to a high watermark

Performance Hurdle
0% return (within a financial year subject to HWM)

Management Fee
1.025% pa

Distribution
Yearly - June

Minimum Investment
$50,000

Minimum Additional Investment
$25,000

Reporting
Quartlerly

Entry/ Exit fees
Nil