The Value Fund is a PIE (Portfolio Investment Entity) fund which 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.

The strategy of the Fund is to primarily invest in equity securities (listed and unlisted) trading at a discount in relation to their net asset value, with low debt levels, and which have a history of paying dividends and/or returning capital to shareholders. Elevation Capital implements this approach by initially screening for stocks on the following basis:

Elevation Capital will then conduct a qualitative overlay to:

  • Identify potential hidden assets on the balance sheet [eg real estate or investment assets at historic cost];
  • Review / assess debt profile and contingent liabilities;
  • Review industry consolidation history / data;
  • Discount intangibles / goodwill where appropriate;
  • Attempt to avoid poor management, whose interests are not aligned with shareholders.

These steps allow Elevation Capital to arrive at what it expects to be a conservative appraisal of the underlying intrinsic value.

Elevation Capital’s bottom-up, proprietary research may lead the Fund to investment opportunities in medium and smaller capitalization companies in out-of-favour or overlooked industries / sectors.

The Fund invests long only and is indifferent to index compositions.

Given our strict value discipline the Fund may hold a portion of assets in cash during periods when attractive investments cannot be found.

The Fund has the ability to hedge foreign currency exposures at Elevation Capital’s discretion.

Fund Domicile: New Zealand
Recommended Investment Timeframe: At least 3 - 5 years
Inception Date: 09 December 2008
Investment Universe: The Fund can invest globally in:
  • Listed and Unlisted Equities
  • Cash
Hedging Investments: Options and forward contracts for currency hedging purposes at Elevation Capital's discretion
Maximum Position Size: The maximum exposure to any security listed on a recognised exchange is limited to 5.00% of the value of the Fund
Trustee: NZGT - The New Zealand Guardian Trust Company Limited
Auditors / Tax: KPMG
Fund Administrator: MMc Limited
Custodian: Public Trust
Entry Cost: 0.60%
Exit Cost: Nil
Management Fee*: 1.25% p.a. of the Net Asset Value of the Fund (Note: a fee scale does apply, please refer to Investment Statement and Prospectus)
Performance Fee: 20% of the Fund's excess performance over the increase in the "MSCI World Value Index + 2%" with a high-water mark [Benchmark Bloomberg Code: MXWO000V:IND (NZD)]
High-Water Mark: A high-water mark ensures the Manager must exceed the highest previous portfolio valuation [NAV] before receiving any performance fee. This ensures the Manager cannot receive a benefit more than once for the same performance
Trustee Fee*: Up to 0.10% p.a. of the Gross Asset Value of the Fund
[subject to a minimum fee of NZ$ 2,500 each quarter]
Fund Administration Fee*: Up to 0.17% pa of the Gross Asset Value of the Fund (min. fees apply)
Custodial Fee*: 0.025% pa up to NZ$ 100mln of FUM (min. fees apply + Sub-Custodian charges)
Distribution Policy: Anually - March (at the Manager's discretion)
Minimum Initial Investment: NZ$ 5,000
Minimum Regular Contribution: NZ$ 100
Regular Contribution Plan: Monthly/Quarterly/Annually
Redemption: Monthly [with 30 days' notice in writing]
Registered Financial Service Provider: Yes - Elevation Capital Management Limited ("the Manager")
FSP number: FSP9601
Dispute Resolution Scheme: Insurance & Ombudsman Scheme (ISO)

*GST will be charged at 15% on 10% of the Management Fee, 75% of the Trustee Fee, and 100% of the Fund Administration and Custodial Fees

Elevation Capital

Elevation Capital Management Limited is a Registered Financial Service Provider in New Zealand in accordance with the Financial Service Providers (Registration and Disputes Resolution) Act 2008 -- FSP # 9601.

Elevation Capital Management Limited does not provide personalised investment advisory services to the public. Nothing herein should be construed as a general advertisement of investment advisory services or a solicitation of prospective clients for investment advisory services. The information herein is intended solely to provide certain background information about Elevation Capital Management Limited and the Funds it currently manages.

Any performance data quoted on this website represents past performance and does not guarantee future performance or results. Market volatility can potentially dramatically impact the Elevation Capital Value Fund and Elevation Capital Global Value Fund of Funds (the ‘Funds’) short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. There can be no assurance that the Funds will achieve any targets or that there will be any return on or of capital.

The commentaries contained within the website represent the views of Elevation Capital Management Limited (as the Manager of the Funds) at the time of writing, and these may change at any time based on market and other conditions. Any opinions and views expressed are not intended to be forecasts of future events, a guarantee of future results or investment advice. Any statistics contained within this website have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed.

The information contained within this website has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell units in the Funds, a recommendation to buy or sell any security or to participate in any trading strategy. Any decision to invest in the Funds should be made only after reviewing the definitive Investment Statement and Prospectus, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal and tax advisors in order to make an independent determination of the suitability and consequences of an investment in the Funds.

To the extent permitted by law, Elevation Capital Management Limited, its directors, employees and agents disclaims all responsibility or liability for any loss or damage which may be suffered by any person relying on any information or any opinions, conclusions or recommendations contained on this website whether that loss or damage is caused by any fault or negligence of Elevation Capital Management Limited or otherwise.

Links

Any external web sites linked to or from this website are not under the control of Elevation Capital Management Limited. Elevation Capital Management Limited is not responsible for and makes no representations, warranties or conditions concerning the contents of any linked website or any link contained in a linked website.

The inclusion of any link on this website is provided as a convenience only and does not imply endorsement, investigation or verification by Elevation Capital Management Limited of the linked site.

Solicitation

If you are from another jurisdiction (outside of New Zealand) nothing on this website should be considered a solicitation to invest in any of the Elevation Capital Funds. This website is provided solely for informational purposes.

Please confirm before entering this website:

I am a New Zealand resident, I have read the disclaimer detailed above and I understand that Elevation Capital Management Limited does not provide personalised investment advice.
I am not a New Zealand resident, I have read the disclaimer detailed above and I am visiting this website for informational only purposes.