NextGen Resources Fund
Overview
A diverse portfolio of small and emerging companies that focuses on commodities being positively impacted by global disruptions, such as the clean-energy transition. The Fund is managed by ex-geologists with the technical and financial skills that are essential for investing in this universe.
Overview
A diversified portfolio of Resources & Energy companies:
Acorn Capital (Acorn) will construct a portfolio of companies that are exposed to growth commodities in the Resources & Energy sectors. These companies will also cover the full range of development stages (i.e., explorers to producers) and include both listed and unlisted (e.g., pre-IPO) opportunities.
Overview
Investment management by one of Australia’s most experienced fund manager of microcap and emerging-growth companies in the Resources & Energy sectors:
Acorn is one of the pioneers of microcap and emerging-growth investing, and has maintained a specialist investment team for the Resources & Energy sectors since its inception in 2002. Investors in the Fund will benefit from nearly 20 years of institutional memory and sector learnings.
Overview
Strong fee alignment and capacity management:
A performance fee will only be paid if the Fund’s returns are above both the benchmark and 0%. In addition, Acorn will hard close the Fund at $100m, thereby preserving and optimizing return potential for existing investors.
The state of play
Unit Pricing.
1.4288
Unit Price (Entry)
31 October 2024
1.4230
Unit Price (Exit)
31 October 2024
Nextgen
Why invest in the resources & energy sectors now?
The global shift to low-carbon economies is reshaping the demand for the commodities used in energy storage, energy generation and the production of electric vehicles. Also, as the world emerges from COVID-19 lockdowns, major stimulus programs and ballooning government debt are impacting the price of commodities such as gold and silver. At Acorn, we believe the confluence of these factors, together with China’s transition from urban growth to urban consolidation, are creating the ideal conditions for a new Resources Supercycle.
NEXTGEN
Why the NextGen resources fund?
We believe the next Resources Supercycle will generate strong demand for commodities such as nickel, lithium, copper and rare earth elements, as well as gold and silver. For the experienced investor, microcap companies can provide attractive direct exposure to these commodities. However, to navigate the large and diverse universe of complex (and often poorly understood) geological systems that contain these metals requires deep financial and technical skills. The NextGen Resources Fund is supported by Acorn investment capability, which have been built over 20 years.
NEXTGEN
Investment Objectives
The fund aims to:
- Provide a diversified portfolio of micro-, small- and mid-cap companies that are exposed to growth commodities in the Resources & Energy sectors
- Outperform the S&P/ASX Small Resources Accumulation Index (the benchmark) over rolling 3-year periods
Investment Strategy
Suitable Investors
- Refer to the Target Market Determination (TMD) below for details on investor suitability
- Capital growth through a diversified exposure to the Resources & Energy sectors
- An active investment approach
- A long term 5+ year investment
Key Fund Terms
Type
Registered Unit Trust.
Objectives
Exceed the returns of the benchmark over rolling 3 years periods.
Benchmark
S&P/ASX Small Resources Accumulation Index (XSRAI)
Asset Allocation
Australian Equities Up to 100%, Global Equities 0-10%, Unlisted investments 0-15%, Cash 0-20%.
Stocks #
25-40.
Liquidity
Daily.
Investment timeframe
5+ years.
Distributions
Annually.
Minimum Investment
$20,000
Management fee
1.35%
Performance fee
20% of returns in excess of the benchmark
Market capitalisation
Must be ex-ASX100 at time of purchase
Stage of development
Seed/startup 0-10%, Early 20-60%, Expansion 40-70%, Mature 10-20%.
Borrowing
The fund is permitted to borrow up to 5% of NAV to apply to redemptions. Borrowings may not be used to leverage or gear the fund.
Shorting
The fund is long only. The fund is not permitted to short sell securities.
Trustee
Evolution Trustees Limited.
APIR Code
ACQ3509AU.
Platforms
Hub24, Netwealth, Ausmaq.
The rating issued 12/2023 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
Related Documents
Latest Commentary
Product Disclosure Statement
REFERENCE GUIDE
Application Form
Target market determination
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For further information
IMPORTANT NOTICE
This report is published by Acorn Capital Limited (“Acorn”) ABN: 51 082 694 531, AFSL: 227605 and is general information only and is not intended as an offer or solicitation with respect to the purchase or sale of any securities by Acorn or the responsible entity and Issuer. Evolution Trustees Limited (“Evolution”) ABN: 29 611 839 519 AFSL: 486217 is the responsible entity and Issuer of the Fund. Acorn is the investment or fund manager of the Acorn Capital NextGen Resources Fund (the Fund) ARSN: 673 344 691. This report does not take into account the investment objectives, financial situation or needs of any particular person. Investors should obtain personal financial advice based on their own particular needs and circumstances before making any investment decision. Any person considering investing, holding or disposing of units in the Fund should review the Product Disclosure Statement for the Fund dated 15 December 2023, Reference Guide, Target Market Determination and any other material published by Acorn. This information is available at www.acorncapital.com.au. Evolution and Acorn do not guarantee repayment of capital or any particular rate of return from the Fund. Past performance is no guarantee of future performance. Investment returns have been calculated in accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distributions of income and realised profits. The information is current at the date of publication, and whilst all care has been taken in its preparation, neither Acorn nor Evolution gives any representation or warranty as to the reliability, completeness or accuracy of the information contained in this report. Statements in this report have been obtained from and are based upon sources that Acorn believes to be reliable, however Acorn does not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this report are subject to change without notice. Not to be reproduced without permission.
