Prices & performance
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* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.
Performance returns are calculated net of management fees and transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.
Why invest with us in emerging companies?
The team’s investment philosophy is that companies generating consistent returns and reinvesting above their cost of capital provide greatest shareholder value.
By identifying small, fast-growing businesses to co-invest in, we help these companies to achieve their goals, while aiming to deliver long-term returns to investors.
A deep understanding of risk / return, coupled with strong relationships with management, allows the investment team to identify companies that have potential be successful over the long term.
The close and collaborative emerging companies team is led by two Senior Portfolio Managers who each research stocks and operate together to manage portfolios, supported by a dedicated Investment Analyst.
What are the risks?
Although all investments carry risk, the level of risk is dependent on the type of investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk.
The risks of investing in the Emerging Companies strategies include:
Investment in equities is exposed to risks due to changes in that company or its business environment.
Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes.
Refers to the difficulty in selling an asset for cash quickly without an adverse impact on the price received. Under abnormal or difficult market conditions some normally liquid assets may become illiquid, restricting the Investment Manager’s ability to sell them and to make withdrawal payments or process switches (if applicable) for investors without a potentially significant delay.
As with any investment, there are no guarantees on the value of the investment or the income generated from it. Investors may get back less than the original amount invested. For a full description of the terms of investment and the risks, please see the Product Disclosure Statement for each fund.
Genex Power: all that glitters was once gold
Genex Power is making its mark in the energy sector with the Kidston Clean Energy Hub, located on two decommissioned gold-mining pits in Far North Queensland. Phase One of the hub - a large-scale solar farm - is already generating and exporting solar energy to the grid. The next, exciting phase of the project provides a way to store this energy, at a fraction of the price of the most common renewable energy storage (batteries)*.
This innovative Pumped Hydro technology works by pumping water from a lower reservoir to an upper reservoir when energy is in surplus, then releasing that water to generate power at times of peak demand and peak price. This manages energy demand and makes solar and wind energy supply more stable.
The Kidston Hub has received funding from the Queensland Government, which designated it ‘critical infrastructure’. It has also received funding from the Clean Energy Finance Corporation and a $619m debt facility from the Northern Australia Infrastructure Fund.
These votes of confidence from government are among the reasons for choosing to invest in Genex. Other attractive features are the company’s solid management team, innovative approach, and potential ability to deliver consistent earnings in coming decades.
As Australia seeks to tackle climate change by lowering emissions, Genex is an important piece in Queensland’s wholesale electricity puzzle: a well-run company making a real difference.
*Morgans estimates pumped gas is 1/10th of the cost of battery storage, Morgans Equity Research 3/10/18
Lifestyle Communities: affordable housing, resort-style living
Many older Australians looking forward to a lifestyle of freedom, fun and flexibility as they age. Lifestyle Communities provides all of this through its purpose-designed communities, but at an affordable price. Its communities operates under an innovative land lease model, where residents own their home, while leasing the land and gaining access to resort-style facilities.
Australia’s twin forces of an ageing population and high property prices have created a need for innovation in the retirement living sector. Lifestyle Communities is a pioneer of the ‘Residential Land Lease Community’ (RLLC) model, which allows over-55s to release equity in their family homes, purchase an affordable retirement property and still access government support. Many residents are receiving the full or part age pension, so the lease/ownership model allows them to receive rental assistance as well.
The emerging companies team is a long-time investor in Lifestyle Communities, attracted by the management team’s commitment to reinventing retirement living in a way that benefits residents. Its focus on organic growth and ability to recycle capital effectively demonstrate prudent financial management. Additionally, the strategy of only building on new, greenfield sites, means they have complete control over the project and don’t acquire existing villages with potential problems.
With a growing number of ‘baby boomers’ reaching retirement age and looking for homes that meet their needs and budget, we believe Lifestyle Communities has a bright future as a leader in the burgeoning RLLC space.
Our corporate responsible investment strategy is based upon three strategic pillars of quality, stewardship and engagement.
We consider ESG risks to be factors that may place business value at risk. Companies at risk are identified using both external providers and our own internally driven research, which is based on a systematic and extensive company meeting program. Company meetings provide us with the opportunity to engage on ESG issues and gain greater insight into potential risks and opportunities. It also provides us with the opportunity to positively influence companies towards ESG best practice where appropriate.