NovaPort Microcap Fund

Overview

The NovaPort Microcap Fund has been designed for investors who wish to access capital growth and additional sharemarket diversification over the longer term through a portfolio of microcap securities. That is, companies with a market capitalisation of less than A$250 million when they are first acquired.

The microcap sector of the sharemarket has relatively minimal coverage from stockbrokers and fund managers compared with the focus on the larger companies on the sharemarket. This presents an opportunity for active investors to benefit from those 'undiscovered' smaller companies that are mispriced or overlooked by the broader market.

Interests in the NovaPort Microcap Fund are offered by Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners). Fidante Partners has appointed NovaPort Capital Pty Ltd as the investment manager of the Fund.

Fund objective

To outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling seven-year periods.

Investment approach

NovaPort's research effort is the foundation on which its investment process is built. To support its analysis of microcap companies, NovaPort conducts in-depth proprietary research through field visits and interviews with management and staff of the target companies, its competitors and the wider market including their vendors, customers and suppliers.

NovaPort investigates comparable offshore industries and compiles research from a variety of other sources including government and industry bodies. As well, NovaPort studies demographics, industry trends, competitive forces operating within an industry, the ability of an industry to grow within an economy, and the ability of a company to grow within an industry. NovaPort also take into account the broad domestic and international economic climate. It applies a disciplined, research based process to its management of the Fund's 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.