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Cromwell launch Phoenix Opportunities Fund (mFund code: CFM02)

18 February 2016

Cromwell launch a new micro-cap equities fund

Today mFund welcomes the Cromwell Phoenix Opportunities Fund. This value orientated fund invests in ASX-listed microcaps using Phoenix Portfolios’ ‘best ideas’ approach, and aims to find hidden value in under-researched small companies, with the majority selected from outside the top 300 listed securities.

Cromwell seeks to identify pricing discrepancies in these ‘under-researched’ stocks and blend together a portfolio of investments that offers the highest risk-adjusted after-tax expected return.

The Fund is priced monthly, as Cromwell Phoenix believe that over the medium to long term, superior investment performance may be achieved by investing in securities that are trading at a discount to their underlying intrinsic value. Security pricing is most prone to error in areas where a limited number of analysts are scrutinising company valuations. Microcap securities typically have little analyst coverage as institutions are unable to deploy meaningful amounts of capital and therefore cannot justify investing time and resources into research. The rationale for the monthly application and redemption period is a nature of the small market capitalisation of the securities the Fund has invested into and to give Phoenix time to position the Fund in the more illiquid securities.

For investors using mFund, the application cut-off time will be 10.15am AEST (or AEDT when observed) on the last Sydney business day prior to the 26th day of any month.   For application forms and investment funds received before the cut-off time, investors receive the issue price based on the valuation of assets calculated on the last day of the month, adjusted for any income distributed.

For more information and to read the Product Disclosure Statements, please visit the Fund Information page.