Kinetic Emerging Companies Fund


The Kinetic Emerging Companies Fund invests in small Australian companies that are listed (or expected to list within six months) on the Australian Securities Exchange (ASX). Small companies are defined as companies lying outside the S&P/ASX 100 Index with a market capitalisation of generally greater than $25 million. This universe currently consists of 800-plus companies.

Interests in the Kinetic Emerging Companies Fund are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234 668 (Fidante Partners). Fidante Partners has appointed Kinetic Investment Partners Limited as the investment manager of the Fund.

Fund objective

The Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling five-year periods.

Investment approach

Investment opportunities are exploited by a disciplined research and valuation process. Kinetic focuses on a company's ability to create shareholder wealth by generating a cash flow return on investment (CFROI) in excess of the firm's cost of capital. A careful assessment of both quantitative and qualitative information on a company's business environment and strategies enables Kinetic to understand the key drivers of a company. It models the CFROI methodology to determine whether the market is correctly valuing the company. However, on occasion, a discounted cash flow methodology is more appropriate such as for toll road investments.

Update of information

Update to the buy and sell spreads 1 October 2014

Fidante Partners has reviewed the buy and sell spreads applicable to all Funds in light of recent sustained market movements of transaction costs. We have seen a consistent change in the level of transaction costs incurred across a number of the asset classes and have decided to change the buy and sell spreads applicable to the Fund from +0.40%/-0.40% to +0.30%/-0.30%.  These changes are effective from 1 October 2014.

Buy and sell spreads are determined and applied in the same manner as disclosed in the Fund's Product Disclosure Statement.