Patersons Wholesale 80:20 Equity Fund

About the Wholesale 80:20 Equity Fund

Patersons Wholesale 80:20 Equity Fund is Patersons flagship Australian wholesale equities fund. The Fund is a diversified Australian equities portfolio which aims to outperform the S&P/ASX300 Accumulation Index.

The 80:20 investment strategy provides efficient and easy access to a professionally managed investment portfolio that offers a mix of quality and opportunity by investing the majority of its assets in S&P/ASX 200 stocks whilst also giving Investors exposure to growth stocks outside the index and the ability to participate in event-driven opportunities that are usually only available to professional Investors.

The Fund aims to provide regular income and long term capital growth. Suitable for Investors with a 5 year timeframe.

What Does The Fund Invest In?

The fund invests in Australian equities.

A minimum of 80% of the Fund will be invested in some of the top 200 stocks listed on the Australian Securities Exchange, including listed entities raising additional capital or entities with an intention to list on the ASX that are likely to be included in the S&P/ASX 200 after listing, and cash or cash equivalent products.

The balance of up to 20% will be invested in smaller companies and growth opportunities outside the index including investment opportunities that are usually only available to professional investors.

The Fund aims to be fully invested and to hold between 20-40 investments.

How Do We Make Investment Decisions?

1. Screening
The universe of stocks for the Fund is all listed or about to be listed entities on the Australian Securities Exchange. An initial quantitative screening process considering both historic data and forward-looking analysis is applied to narrow the universe down to create a Focus List of companies that we believe have the highest likelihood of significantly increasing shareholder value.
2. Research
All entities included in the Focus List undergo further detailed assessment that will consider their investment strength and market value, resulting in a score being applied.  All stocks are then ranked according to their score, which is used to identify the relative attractiveness of one stock over another.  In general, investments will be made according to the ranking, subject to the Fund’s Investment Guidelines.
3. Portfolio
The final step in the process is to choose the number of stocks to be included in the portfolio as well as determine the appropriate weighting of each stock.  In developing and managing the portfolio, optimisation techniques will be used to maximise the risk adjusted returns of the Fund. This optimisation process will be carried out every time a new investment opportunity is considered.

The information above represents only a summary of the fund.  If you wish to consider investing, you should download the PDS in its entirety from this website and read the entire document.

ABN 68 009 226 386    AFSL No. 267 899