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Printed: 06 July 2022 11:10 PM


29 Jul 2021 - Performance Report: Equitable Investors Dragonfly Fund
By: Australian Fund Monitors

Report Date29 July 2021
ManagerEquitable Investors
Fund NameEquitable Investors Dragonfly Fund
StrategyEquity Long
Latest Return DateJune 2021
Latest Return-4.44%
Latest 6 Months13.13%
Latest 12 Months74.33%
Latest 24 Months (pa)12.90%
Annualised Since Inception0.82%
Inception Date01 September 2017
FUM (millions)
Fund OverviewThe Equitable Investors Dragonfly Fund aims to deliver a total return greater than the annual five year government bond rate + 5% pa over the medium-to-long term.

The Fund is an open ended, unlisted unit trust investing predominantly in ASX listed companies. Hybrid, debt & unlisted investments are also considered. The Fund is focused on investing in growing or strategic businesses and generating returns that, to the extent possible, are less dependent on the direction of the broader sharemarket. The Fund may at times change its cash weighting or utilise exchange traded products to manage market risk.

Investments will primarily be made in micro-to-mid cap companies listed on the ASX. Larger listed businesses will also be considered for investment but are not expected to meet the manager's investment criteria as regularly as smaller peers.
Manager CommentsThe Equitable Investors Dragonfly Fund has risen +74.33% over the past 12 months vs the ASX200 Accumulation Index's +27.80%. Over the past 24 months the Fund has delivered an annualised return of +12.90% vs the Index's +8.62%.

The Fund's 12-month up-capture and down-capture ratios, 245% and 84% respectively, indicate that, on average, it has outperformed during both the market's positive and negative months over that period.

The Fund returned -5.29% over the June quarter. Top contributors included Geo (NZX: GEO) and iSelect (ISU). Key detractors included Scout Security (SCT) and 8Common (8CO). Equitable Investors noted that, after a catalyst rich run for the fund earlier in FY21, the June quarter was a quiet one as the Fund's big movers (both up and down) didn't have any significant news to drive them.

Value catalysts are what Equitable Investors are looking for and they hope to see triggers for re-ratings across a number of key holdings in the December half. Stepping back from the individual investments to the broader market, they've observed a wide gap between the valuation multiples of larger and smaller stocks. They expect investors will be enticed to look at smaller stocks in a world where large caps are priced at extreme levels based on a number of measures.
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