Cromwell Phoenix Property Securities Fund

This award-winning Fund is one of the top performing property securities funds in Australia, with underlying investments chosen by investment manager, Phoenix Portfolios.
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Performance5 (Annualised as at 30 September 2021)

Past performance is not indicative of future performance.

Independently researched by Zenith3 and Lonsec4

Performance5 (Annualised as at 31 December 2021)

1 Year 3 Years 5 Years 10 Years

Inception

(April 08)

Fund Performance

After fees and costs

26.5% 12.4% 9.5% 15.3% 9.5%

Benchmark

S&P/ASX 300 A-REIT Accumulation Index

27.0% 13.4% 9.9% 14.1% 6.0%
Excess Returns

After fees and costs

(0.5%) (1.0%) (0.4%) 1.2% 3.5%

Past performance is not indicative of future performance.
PSF Benchmark-Vs-Fund-December-1_Chart
Past performance is not indicative of future performance.

What makes the Fund different?

The Fund follows a truly active ‘benchmark unaware’ strategy, which means it is not forced to own stocks just because they are part of the Benchmark Index. The increased flexibility of this strategy has improved Phoenix Portfolios’ ability to outperform the Benchmark Index over the long term5.
Our leading performance
Past performance is not indicative of future performance.

'Benchmark unaware' strategy

The Benchmark2

If you were to invest in the Benchmark Index on 31 December 2021, approximately 78.8% of your investment would be in 10 stocks. ‘Benchmark unaware’, Phoenix is able to diversify the Fund’s exposure and gain a bigger slice of the smaller stocks (compare the orange sections in both graphs adjacent).

The Fund

Phoenix believes smaller stocks are typically under-researched and therefore more likely to be attractively priced. So, despite many of these stocks possessing compelling investment fundamentals, they are overlooked by many managers.

Talk to our investment team
piecharts-sept-blacktext-2

'Best ideas' approach

Phoenix carries out extensive proprietary research on approximately 75 stocks covering a broad range of Real Estate Investment Trusts, property-related stocks and some infrastructure. A large universe of investment options provides more opportunities to add value. Phoenix uses a standardised valuation framework which facilitates ‘apples for apples’ comparisons.

The investment team considers the characteristics of each investment opportunity and the related corporate governance issues which can have a material impact on the stock’s long-term valuation.

Fundamental analysis focuses on ‘bottom-up’ research to fully understand the key factors that have driven historic performance and to enable informed forecasts to be made of its future earnings and cash generation.

Only a subset of the stocks Phoenix researches are considered ‘Best Ideas’ and worthy of consideration for inclusion in the Fund.

Portfolios are constructed without reference to a benchmark index. Position size is a function of valuation and liquidity with portfolio positions heavily skewed towards those stocks with the most attractive valuations. The portfolio is constructed to achieve a well-diversified outcome with exposures across all property sub-sectors and geographies.

As stock fundamentals change, or as a stock moves towards Phoenix’s assessment of fair value it may no longer qualify as a ‘best idea’ and will likely be replaced with more compelling investment opportunities.

Learn more about the Fund

Dan

Daniel Thomas

National Manager – Adviser Distribution (VIC, SA, WA, TAS)
Scott

Scott Bradley

National Manager – Adviser Distribution (VIC, SA, WA, TAS)
Zenith Fund Awards 2021 A-REIT category winner awarded to Cromwell Funds Management Limited.

1The Zenith Fund Awards were issued on 15 October 2021 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. To the extent that the Fund Awards constitutes advice, it is General Advice for Wholesale clients only without taking into consideration the objectives, financial situation or needs of any specific person. Investors should seek their own independent financial advice before making any investment decision and should consider the appropriateness of any advice. Investors should obtain a copy of and consider any relevant PDS or offer document before making any investment decisions. Past performance is not an indication of future performance. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.

2 As at 31 December 2021. Positions in the Fund and the Benchmark Index are subject to change.

3 The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (Zenith) rating (assigned APIR CRM0008AU June 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001 Cth)) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

4 The Lonsec Rating (assigned March 2021) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined by the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Cromwell Funds Management product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings.

5 After fees and costs. Performance data for periods longer than one year have been annualised. Past performance is not a reliable indicator of future performance.