Simplify the buying process and diversify your portfolio. ETF's can help you achieve your investment objectives.

Vigilance Rewards

What is an ETF?

An exchange traded fund is a unit trust that holds a broad range of investments, specifically for K2 equities. These managed funds are traded on an Australian exchange (ASX or Cboe) in the same way as shares in a company. Unitholders are able to gain equity exposure via one investment rather than holding multiple assets directly. Settlement and reporting are provided via CHESS allowing investors to consolidate their investment on one platform, providing simplicity.
 
Active ETFs are unit trusts that do not track an index and are more similar to actively managed funds. ETF’s differ from unlisted managed funds in that the ETF aims to provide investors with a more efficient way of accessing the strategy via the application and redemption process.

 

KSM - K2 Australian Small Cap Fund (Hedge Fund)

The K2 Australian Small Cap Fund (KSM) provides investors with the opportunity to invest in a diversified Australian Small / Mid cap equities fund directly via the ASX. The fund’s units trade on the ASX market, meaning investors can buy and sell units via their own online broker account, stockbroker or financial planner.

The K2 Australian Small Cap Fund has a mandate to invest both long and short, seeking to provide investors with absolute returns. Through the active management of equity and cash exposure this strategy has delivered significant returns to clients since the funds inception in 2013.

Developed with the self-managed super fund in mind the K2 Small Cap Fund provides investors ease of access to a market segment that would otherwise not be present in their portfolios.

If you would like to receive the Target Market Determination (TMD) for this Fund please contact us at invest@k2am.com.au


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ASX Ticker KSM
Intraday Indicative NAV (iNAV) A$2.25* as at 4:15PM 9th Dec 2022
*quoted ex-distribution
Structure Australian Small Cap Equities Fund
Inception 1 December 2013
Management Fee 1.31% p.a. (incl. GST & RITC)
Performance Fee 15.38% p.a. (incl. GST & RITC) of the amount by which the NAV exceeds the High Water Mark. The fund must also exceed a net 6% p.a. hurdle before a performance fees applies on total performance.
ARSN 166 480 584

K2 Australian Small Cap Fund investment philosophy

At K2, we focus on delivering superior risk adjusted returns for our clients over the long term. We invest in equities to generate positive returns and aim to preserve our clients’ capital when market conditions change.

K2 has a flexible investment style as we believe that there is no one uniform cycle across the investment universe. By adopting the most appropriate style (for example, growth, value, momentum or income) that is best suited to the current market conditions allows K2 to maximise risk-adjusted returns.  Investment opportunities can come from any number of areas and as a result K2 incorporates top down macro-economic analysis with bottom up stock selection.

Each of K2’s experienced investment managers brings their own investment style and methodology to our portfolios, combining their individual research with direct contact with companies.  Investment managers are encouraged to invest autonomously and pursue investment opportunities within a well-documented framework.  As a result, K2’s portfolios tend to be high conviction and index unaware.  The investment team will always examine key investment variables, however, it is the team’s ability to identify major investment themes and catalysts on a timely basis that gives K2 its competitive advantage. 

In addition to identifying undervalued stocks, K2 has the ability to actively manage equity market exposure and currency exposure as well as having the ability to short sell. These provide K2’s portfolio managers with additional tools to deliver superior risk adjusted returns for our clients.

The K2 Australian Small Cap Fund seeks to add value by investing in mis-priced stocks, where a company’s fundamental value has not yet been recognised by the market.

K2's assessment of a company's management, industry structure and valuation leads to investments in high quality companies in industries with structural growth or which have barriers to entry for competitors.

The portfolio is constructed primarily via a bottom up investment process which identifies K2's highest conviction ideas. If there are limited opportunities in the equity market the fund will hold cash until profitable opportunities are uncovered.

Investment Process

The K2 Australian Small Cap Fund seeks to add value by investing in mis-priced stocks, where a company’s fundamental value has not yet been recognised by the market.

K2's assessment of a company's management, industry structure and valuation leads to investments in high quality companies in industries with structural growth or which have barriers to entry for competitors.

The portfolio is constructed primarily via a bottom up investment process which identifies K2's highest conviction ideas. If there are limited opportunities in the equity market the fund will hold cash until profitable opportunities are uncovered.

Management quality is assessed via:

  • Track record
  • Execution of business strategies
  • Capital Management
  • Alignment of interests with shareholders

Industry Structure is assessed via:

  • Growth outlook, supply and demand
  • Barriers to entry, potential competition
  • Regulatory environment
  • Substitutes
  • Pricing Power

Valuations are monitored on a relative basis with EPS growth and PER forming the criteria for determining current value and identifying when the intrinsic value assessment is reached.

In assessing intrinsic value, stock liquidity is a key consideration. As a high conviction portfolio with an ability to hold cash, monitoring valuations helps set realistic price targets.

 

Performance Since Inception

Past performance is not a reliable indicator of future performance. View Full Disclaimer.

Sector Equity Exposure

Graph represents sector equity exposure as at 30/11/2022

KSM Daily Pricing Performance

DateNAV
08/12/222.25
07/12/222.26
06/12/222.30
05/12/222.33
01/12/222.34
30/11/222.32
29/11/222.29
28/11/222.30
25/11/222.30
24/11/222.29
23/11/222.30
22/11/222.28
21/11/222.27
18/11/222.29
17/11/222.28

Download Daily Pricing Performance CSV

Apostle Dundas Global Equity Fund

                       

 

Dundas Global Investors is an independent global equity investment manager based in Edinburgh. They manage a single investment strategy, global equities, in pursuit of capital and dividend growth to keep their clients’ precious funds intact from the corrosive effect of inflation. They invest in the best public companies from around the world, relying upon their own research to identify them. Portfolios typically comprise 60-100 stocks, with no distinction between developed and so-called emerging markets; it’s a global economy.

By owning equity shares investors gain a direct interest in companies’ wealth generation which they experience in two distinct ways, capital growth and dividends. Dundas Global Investors’ investment strategy pays equal attention to both elements.

Clients’ portfolios and their own assets are invested alongside each other. As an independent firm, owned by Alan McFarlane and the staff without external shareholders, they manage client’s portfolios free from the conflict of interest that can bedevil more complex organisations.

If you would like to receive the Target Market Determination (TMD) for this Fund please contact us at invest@k2am.com.au

Investment Objective:

  • Deliver rolling five-year returns in excess of 2.5%p.a. of the capital return of the MSCI All Country World Index (ex Australia) before fees ('Benchmark').
  • Five-year compound annual growth in dividends per portfolio unit greater than inflation and the dividend growth of the Benchmark.
  • Achieve lower volatility than the equivalent capital and dividend returns for the Benchmark through a stock selection focus on high real book value growth and growing dividend income.


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ASX Ticker ADEF
Intraday Indicative NAV (iNAV)Loading...
Structure Global Equities Fund
Inception February 2021
Management Fee 0.90% p.a. (inc. GST & RITC)
ARSN 093 116 771
 

*The iNAV price is provided by Solactive as a continual feed (Please refresh your browser to see the updated price)

Apostle Dundas Investment Philosophy

The investment philosophy at Dundas Global Investors (Dundas) centres on the belief that investing in stocks with high real book value growth and growing dividend income can generate greater compounded returns while offering lower volatility for investors in a portfolio.

Investment Process

Dundas follows an 18-24 month cycle covering the core 2,500 stocks available on the Benchmark on a sector by sector basis, plus the further 1,000 global stocks with market capitalisation of >US$2 billion that MSCI has chosen not to include in the ACWI.

The order of sector analysis is linked to factors such as market development or the decision to review particular stocks currently held in the portfolio. Dundas sifts its universe in order to identify a shortlist of prospects for further analysis which are allocated evenly across the investment team.

Each analyst considers company financials, business strategy, competitors and market trends in depth and research is discussed in daily investment meetings. Candidates for the portfolio are considered on valuation metrics including likely future growth rate of dividends and book value, valuation history, competitor and market valuation as well as growth and valuation metrics for similar stocks held in the portfolio.

The Dundas portfolio team determines stock selection and portfolio composition collegially.