NovaPort Wholesale Smaller Companies Fund
30 April 2024
Key Facts
| Index Used: | ASX 200 Total Return | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Long - Small/Mid Cap - Australia | FUM (millions): | AU$ 170.43m |
| Investment Style: | Blend | Fund Inception Date: | December 2002 |
| Geographic Mandate: | Australia/NZ | Latest Return Date: | April 2024 |
| Investor Type: | Wholesale | Status: | Closed |
| Minimum Investment: | AU$ 10,000 | Investment Frequency: | Daily |
Manager Details
As a high conviction investors, NovaPort invest in a concentrated number of companies at any given time, with portfolios that have lower turnover of securities. They believe there are inefficiencies in investment markets, particularly within the universe of smaller listed companies. Their approach is focused on buying companies with an improving outlook at discounted valuations. New investment ideas for their portfolios are discovered through conducting extensive research, qualitative analysis and financial modelling, with the ultimate aim of providing superior investment returns for investors over a three year time horizon.
Fidante Partners invests in and forms long-term alliances with talented investment professionals to create, grow and support specialist, boutique funds management businesses. By providing a broad range of integrated services to NovaPort Capital, Fidante Partners frees up the NovaPort investment team to focus on what it does best; investing and managing assets.
Fidante Partners is part of Challenger Limited (Challenger), an Australian financial services firm listed on the ASX.
Strategy Description
NovaPort's approach to managing the Fund is based on paying a reasonable price for companies with an improving profit growth profile, while paying particular attention to the underlying quality of company earnings, industry structure and quality of management with an aim to minimise downside risk.
NovaPort's research effort is the foundation on which its investment process is built. To support its analysis of microcap companies, NovaPort conducts in-depth proprietary research through field visits and interviews with management and staff of the target companies, its competitors and the wider market including their vendors, customers and suppliers. NovaPort investigates comparable offshore industries and compiles research from a variety of other sources including government and industry bodies.
The Fund invests in a diversified portfolio of shares, primarily listed Australian companies with a market capitalisation of generally less than A$250 million at the time they are first acquired on behalf of the Fund. Up to 10% of the Fund can be invested in unlisted companies, usually those that intend to list within 18 months. The Fund may also invest in listed New Zealand microcap companies and a proportion can be held in cash.
The final portfolio reflects NovaPort's assessment of the best 'bottom-up' ideas generated, resulting in a portfolio of between 25 and 65 securities, which meet the Fund's investment criteria.
The Fund invests in a diversified portfolio of shares, primarily listed Australian companies with a market capitalisation of generally less than A$250 million at the time they are first acquired on behalf of the Fund.
Fund Fees
| Management Fee: | 0.9% | Performance Fee: | 20% |
| Buy Spread: | 0.3% | Sell spread: | 0.3% |
| High Water Mark: | Yes | Hurdle: | S&P/ASX Small Ordinaries Accumulation Index |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Fidante Partners |
| Administrator: | N/A | Prime Broker: | N/A |
| Custodian: | N/A | Legal: | N/A |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The NovaPort Wholesale Smaller Companies Fund has a track record of 23 years and 10 months and has outperformed the ASX 200 Total Return benchmark since inception in July 2000, providing investors with an annualised return of 13.45% compared with the benchmark's return of 8% over the same period.
The Manager has delivered these returns with 2.44% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.67 since inception. The fund has provided positive monthly returns 88% of the time in rising markets and 27% of the time during periods of market decline, contributing to an up-capture ratio since inception of 138% and a down-capture ratio of 96%.
The NovaPort Wholesale Smaller Companies Fund returned -3.27% in April, a difference of -0.33% compared with the ASX 200 Total Return benchmark which fell by -2.94%. Over the past 12 months, the fund's best monthly return was +5.65% compared with the benchmark's best return of +7.26%, and its worst monthly return was -4.56% vs the benchmark's worst return over the same period of -3.78%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.93 | 2.38 | 2.60 | -3.27 | NA | NA | NA | NA | NA | NA | NA | NA | 2.56 |
| 2023 | 3.17 | -2.43 | 3.25 | 2.74 | -4.02 | 0.49 | 3.66 | 2.56 | -2.10 | -4.56 | 5.65 | 3.77 | 12.16 |
| 2022 | -7.87 | 0.45 | 4.03 | -2.04 | -8.82 | -10.97 | 8.43 | 0.41 | -5.79 | 4.78 | 2.70 | -2.06 | -17.23 |
| 2021 | -0.31 | -0.05 | 0.58 | 5.19 | -0.30 | 2.35 | -0.06 | 3.84 | -0.94 | 1.82 | -1.03 | 4.24 | 16.16 |
| 2020 | 2.74 | -6.26 | -24.54 | 9.84 | 7.41 | -0.32 | 0.98 | 3.17 | -1.00 | 0.96 | 8.45 | 5.77 | 2.09 |
| 2019 | 6.13 | 6.44 | 0.74 | 2.75 | -2.37 | 1.04 | 5.73 | -1.90 | 3.40 | 1.04 | 0.40 | 1.21 | 27.01 |
| 2018 | -0.82 | -0.27 | -1.83 | 2.30 | 0.26 | 2.59 | -0.13 | 3.09 | -0.94 | -9.09 | -1.82 | -1.81 | -8.67 |
| 2017 | -5.51 | 0.60 | 2.67 | -0.23 | -0.12 | 1.08 | 1.98 | -1.22 | -0.27 | 3.28 | 1.64 | 2.71 | 6.48 |
| 2016 | -4.58 | -2.07 | 4.48 | 0.81 | 3.32 | -1.65 | 7.09 | 5.20 | 2.90 | -5.20 | -1.45 | 4.01 | 12.66 |
| 2015 | 0.49 | 8.95 | -1.64 | -0.84 | 3.26 | -6.39 | 2.04 | -2.73 | -3.20 | 5.30 | -0.75 | 3.25 | 7.01 |
| 2014 | -0.86 | 3.34 | 0.06 | 0.98 | 2.29 | -1.43 | 4.11 | 2.57 | -4.14 | 2.25 | -2.63 | -0.20 | 6.17 |
| 2013 | 4.39 | 4.26 | 1.93 | -0.34 | -1.10 | -2.72 | 7.37 | 5.13 | 4.16 | 2.64 | -1.29 | 0.33 | 27.13 |
| 2012 | 3.60 | 5.72 | 1.10 | 1.02 | -4.17 | -0.51 | 2.78 | 6.72 | 3.84 | 2.80 | 1.22 | 5.34 | 33.14 |
| 2011 | 2.30 | 4.76 | 3.29 | 0.52 | -4.13 | -3.21 | 0.67 | -1.85 | -2.97 | 5.60 | 0.04 | -4.95 | -0.61 |
| 2010 | -4.42 | -0.32 | 6.84 | 2.82 | -9.70 | -2.19 | 1.05 | 0.08 | 6.23 | 0.08 | -0.70 | 4.27 | 2.91 |
| 2009 | -2.01 | -2.07 | 5.59 | 8.98 | 8.47 | 4.18 | 4.90 | 11.35 | 7.55 | 2.27 | 3.20 | 4.75 | 73.29 |
| 2008 | -12.31 | -0.96 | -7.86 | 1.58 | 2.65 | -8.42 | -2.76 | 6.27 | -8.81 | -23.65 | -8.13 | 2.81 | -48.07 |
| 2007 | 2.82 | 2.70 | 2.68 | 4.01 | 4.20 | 1.98 | -0.29 | -2.82 | 5.76 | 5.68 | -0.57 | 3.73 | 33.86 |
| 2006 | 1.65 | 0.92 | 5.72 | -1.26 | -4.58 | 2.88 | -0.66 | 1.99 | 4.56 | 6.99 | 5.43 | 6.28 | 33.50 |
| 2005 | 1.45 | -1.69 | -6.47 | 1.33 | 4.72 | 2.64 | 2.64 | 2.66 | 3.02 | -1.28 | -1.01 | -0.43 | 7.32 |
| 2004 | 3.90 | 3.33 | -0.04 | 1.20 | 0.66 | 5.08 | 3.25 | 1.44 | 4.11 | 5.01 | 2.79 | 1.71 | 37.53 |
| 2003 | 1.72 | -1.73 | 3.00 | 5.26 | 2.11 | 2.25 | 10.48 | 5.99 | 3.57 | 6.23 | -0.43 | 3.86 | 50.74 |
| 2002 | 7.72 | 2.79 | 3.12 | 0.49 | 1.25 | -2.96 | -1.66 | 9.53 | -2.39 | -1.54 | 0.66 | 2.76 | 20.73 |
| 2001 | 2.36 | -3.82 | -10.09 | 4.18 | 3.87 | 2.42 | 4.33 | 5.88 | -6.44 | 15.99 | 7.44 | 2.88 | 30.00 |
| 2000 | NA | NA | NA | NA | NA | NA | 1.70 | 6.33 | 3.67 | 5.23 | 4.73 | -5.53 | 16.72 |
Only seven years of data shown. Click here to view all data.
Annual Returns
Over the past 12 months, the fund has risen by +7.71% compared with the benchmark which has returned +9.07%, for a difference of -1.36%. Since inception in July 2000, the fund has returned +13.45% per annum, a difference of +5.45% relative to the benchmark which has returned +8% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $2025. The same amount invested in the benchmark over the same period would have become $625.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 11.23% vs the index's 11.52%. The annualised volatility of the fund's returns since inception in July 2000 is 15.77% vs the index's 13.33%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 0.57 for performance over the most recent 48 months to a low of -0.09 over the latest 24 months, and is 0.67 for performance since inception. By contrast, the ASX 200 Total Return Index's Sharpe for performance since July 2000 is 0.39.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in July 2000 in the months where the market was positive, the fund has provided positive returns 88% of the time, contributing to an up-capture ratio for returns since inception of 137.67%. Over all other periods, the fund's up-capture ratio has ranged from a high of 87.03% over the most recent 12 months to a low of 75.17% over the latest 36 months.
Performance in Negative Markets
Since inception in July 2000 in the months where the market was negative, the fund has provided positive returns 27% of the time, contributing to a down-capture ratio for returns since inception of 95.89%. Over all other periods, the fund's down-capture ratio has ranged from a high of 106.06% over the most recent 24 months to a low of 90.49% over the latest 12 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 0.72 for performance over the most recent 48 months to a low of -0.22 over the latest 24 months, and is 0.83 for performance since inception. By contrast, the ASX 200 Total Return Index's Sortino for performance since July 2000 is 0.44.
Drawdown
Over the past 12 months, the fund's largest drawdown was -6.56% vs the index's -7.19%, and since inception in July 2000 the fund's largest drawdown was -50.17% vs the index's maximum drawdown over the same period of -47.19%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Long - Small/Mid Cap - Australia as of April 2024
The performance of the NovaPort Wholesale Smaller Companies Fund ranked it in the second quintile for Volatility, Downside Deviation and Largest Drawdown over 3, 5 & 7 years, while over 1 year the fund ranked in the first quintile for Largest Drawdown and second quintile for Volatility and Downside Deviation.
Over the past 12 months, the fund has risen by +7.71% compared with the peer group which has returned an average of +13.21%, for a difference of -5.5%.
The fund's returns over the past 12 months have been achieved with a volatility of 11.23% vs the peer group's average volatility of 10.84%. The annualised volatility of the fund's returns since inception in July 2000 is 15.77% vs the peer group's 14.51%. Over all other periods, the fund's volatility relative to the peer group has been varied.