Pathfinder & Elevation

This month we’ve added two new fund managers to InvestNow – Pathfinder Asset Management and Elevation Capital.

Here is some background they have each provided on their respective PIE funds.

Pathfinder Global Property Fund

The Global Property Fund is designed to provide NZ investors with a liquid, diversified, currency managed global property exposure, and deliver a portfolio yield similar to NZ property stocks.

Pathfinder believe global diversification is important as New Zealand investor portfolios are often heavily overweight a small number of NZ property stocks (yet the NZ market makes up less than 0.1% of global stock markets).

Property stocks often behave differently to the wider stock market and are regarded as having an element of inflation protection.  The fund will directly hold up to 100 listed property stocks, including an allocation to New Zealand.

Investing in global property delivers much greater diversification across countries, sectors, company sizes, sources of revenue and management styles.

Their fund invests in property companies (and property trusts) listed in Developed Markets – initial allocations will be across 10 countries.

Based on their valuation metrics they can over or under weight property sectors and individual countries within the fund.  

 

The Elevation Capital Value Fund

“The Elevation Capital Value Fund is a Portfolio Investment Entity (PIE) that seeks to provide investors with long-term capital growth and income by directly investing in equities on a global basis, while at the same time adhering to a “Margin of Safety” investment philosophy.

A review of the Elevation Capital Value Fund’s portfolio will detail investments that typically exhibit one or all of the following characteristics:

  • Low price in relation to net asset value or “intrinsic value* (corporate net worth);
  • Low debt levels**;
  • A history of paying dividends and/or returning capital to shareholders; and,
  • Have some form of economic moat e.g. brands, franchises or other.

The culmination of these factors results in the aforementioned “Margin of Safety” – the discount between the purchase price and our estimate of intrinsic value”.

*Net Asset Value / Intrinsic Value – is also referred to as “Private Market Value”. Collectively we define them as the value an informed buyer would pay to purchase assets with similar characteristics. We measure Net Asset Value / Intrinsic Value or Private Market Value by scrutinising on and off balance sheet assets, liabilities and free cash flow. We also examine valuations and transactions in the public domain to formulate our view of possible future value.

 **Low Debt Levels – can be assessed relative to tangible and/or intangible assets, free cash flow, the industry in which an entity operates, or versus peers within an industry.

Fund Sector Fee~ PDF
Pathfinder Pathfinder Global Property Fund Listed Property 1.15% Download
Elevation Elevation Capital Value Fund International Equities 2.20% Download

~Fee estimates for PIE funds reflect the total expense ratio in the Fund Updates provided to the Disclose Register for the year to 30 June 2017 (note that this figure includes GST and any performance-based fees), unless we have been advised of a more recent change.

By |2018-08-23T11:03:42+12:00October 2nd, 2017|Uncategorised|0 Comments

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