Yarra Ex 20 Australian Equities Fund

Investment objective

To achieve medium-to-long term capital growth through exposure to Australian Securities Exchange listed securities excluding those included in the S&P/ASX 20 Index. In doing so, the aim is to outperform the S&P/ASX 300 ex S&P/ASX 20 Accumulation Index over rolling three-year periods.

Investment strategy

The philosophy of the fund is based on the belief that markets are competitive but not perfectly efficient and that mispricing opportunities arise when the market’s valuation (as depicted in the share price) doesn’t reflect the manager’s views on a company’s true value. The Fund invests in securities which are listed or to be listed on the Australian Securities Exchange (excluding securities in the S&P/ASX 20 Index) with a bias towards those within the S&P/ASX 300 ex S&P/ASX 20 Index. Investments in securities that are elevated to the S&P/ASX 20 Index will be sold within 18 months. Generally, 15 to 35 securities are held in the portfolio. Where appropriate, financial derivatives will be used to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.

Investment manager

Yarra Capital Management is a leading independent, active Australian fund manager with a strong heritage in the local market.

With $20 billion of AUM1 we have an established track record in all market conditions.

We offer a range of actively managed fundamental equities, fixed income and multi-asset solutions, and our Australian equity funds span large cap through to microcap strategies.