Managed Funds - Australian Value Trust

Overview

Established on 29 November 2001, the Hunter Hall Australian Value Trust (AVT) is principally invested in an ethically screened domestic portfolio of manufacturing, service and distribution businesses. The objective of the AVT is to increase the wealth of its investors by substantially outperforming the Australian stockmarket, benchmarked by the S&P/ASX Small Ordinaries Accumulation Index (Small Ords), over the medium to long term without incurring significant risk to capital.

Key Information

Inception Date
29 November 2001
Investment Objectives
To increase the wealth of its investors by substantially outperforming the Australian stockmarket, as benchmarked by the S&P/ASX Small Ordinaries Accumulation Index (Small Ords), over the medium to long term without incurring significant risk to capital
Territory
Domestic (Australia and New Zealand)
Ethical Policy
Negative screen
Recommended Investment Time Frame
5 years+
Minimum Initial Investment
$5,000
Distributions 1
30 June and 31 December
Entry Fee
4% of which all may be rebated
Nil for Class B unitholders
Management Fee 
1.80% per annum
Management Fee Rebate 2
0.35% per annum
Performance Fee
15% of any return greater than the Small Ords, payable half yearly
Advisor Remuneration 3
0.35% per annum
MER 4 to 30.06.2013
2.22% (excluding performance fee)
2.22% (including performance fee)
Regular Savings Plan
Yes - minimum $200 per month
Hedging Policy
No

1. Distributions are only payable when there is net income to distribute.

2. For Class B unitholders: The Management Fee Rebate can be accessed by wholesale investors, or by investors who access the Funds via IDPS platforms such as Master Trusts or Wraps.

3.Advisor Remuneration is a fee paid by Hunter Hall to licensed advisors from the Management Fees it earns from the GET and AVT. It is not an additional fee for investors.  

4.The Management Expense Ratio (MER) is a measurement of costs incurred by an investor who invests in an unlisted Managed Investment Scheme that would not be incurred by an investor who invests directly in the same assets as held by the Scheme. The MERs shown are based on unaudited financial statements. The Indirect Cost Ratio (ICR) measures the costs of managing the Funds' investments that are not deducted directly from an investors account, including investment-related legal costs, management and performance fees paid to the investment manager, custody fees and the net effect of any GST. For the Hunter Hall Funds the ICR equates to the Total MER.

Performance

Performance as at 31/08/2014

AVT
Small Ords
Relative
Performance
(AVT vs Small Ords)
All Ords
Relative
Performance
(AVT vs All Ords)
3 months
7.6%
6.2%
1.4%
3.8%
3.8%
6 months
7.3%
3.7%
3.6%
6.0%
1.3%
1 year
11.6%
7.5%
4.1%
14.4%
-2.8%
3 years
2.6%
-0.2%
2.8%
13.6%
-11.0%
5 years
3.5%
1.8%
1.7%
9.1%
-5.6%
7 years
0.4%
-3.9%
4.3%
2.8%
-2.4%
10 Years
5.1%
4.5%
0.6%
9.2%
-4.1%
Since inception (29.11.2001)
7.7%
0.0%
0.0%
6.1%
1.6%
Small Ords refers to the S&P/ASX Small Ordinaries Accumulation Index. All Ords refers to the All Ordinaries Accumulation Index. Investment returns have been calculated in accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distribution of income and realised profits. Past performance is no guarantee of future performance and no guarantee of future return is implied. Source: Hunter Hall.
Relative Performance Since Inception

The following chart illustrates the value of a net investment of $10,000 in the AVT since its inception on 29 November 2001, compared to a net investment of $10,000 in the Small Ords and the All Ords. The AVT figure is net of fees including, but not limited to, the management fee of 1.8% per annum and the 15% performance fee.
Small Ords refers to the S&P/ASX Small Ordinaries Accumulation Index. All Ords refers to the All Ordinaries Accumulation Index. All returns are on a pre-tax basis. Past performance is no guarantee of future performance. Source: Hunter Hall, Bloomberg.
Financial Year End Returns
Australian Value Trust (% per annum)
AVT
All Ords
Financial YTD 2014
9.2
5.2
Year to June 2014
14.8
17.6
Year to June 2013
-7.2
20.7
Year to June 2012
-11.0
-7.0
Year to June 2011
17.1
12.2
Year to June 2010
25.8
13.8
Year to June 2009
-23.0
-22.1
Year to June 2008
-13.3
-12.1
Year to June 2007
38.4
30.3
Year to June 2006
17.9
24.2
Year to June 2005
4.7
24.7
Year to June 2004
23.0
22.4
Year to June 2003
-8.8
-1.1
7 Months to June 2002
31.0
-1.7
Top Ten Holdings at 31/08/2014
Company
Main Business
Country
% of Net Assets
at Market Value
IOOF
financial services
Australia
5.6
M2 Telecommunications
telecommunications
Australia
5.6
Maca Limited
engineering services
Australia
4.3
RCR Tomlinson
engineering services
Australia
4.1
Cedarwoods
real estate development
Australia
3.8
McMillan Shakespeare
salary packaging
Australia
3.5
Mortgage Choice
mortgage broking
Australia
3.5
Ardent Leisure
leisure and entertainment properties
Australia
3.4
Fletcher Building
building materials
New Zealand
3.3
Slater & Gordon
insurance law
Australia
3.2
Distributions

The net income of the Fund is distributed to unitholders as soon as practicable after each 30 June and 31 December.

Income distributions can be reinvested in additional units, deposited directly to a nominated bank account or mailed by cheque.

The AVT's unit price has grown from $1.00, at inception on 29 November 2001, to $1.2031 at 30 June 2014. Of the 26 six-month periods over the life of the Fund, the AVT has made a distribution on 20 occasions.

Click here for the Distribution Report for the period to 30 June 2014.

Distribution History

Year ended
Cash per Unit
Australian
Franking Credits
(per unit)
Foreign
Tax Credits
(per unit)
Reinvestment
Price
30/06/2014
1.5718
1.0796
0.0267
120.31
31/12/2013
1.7504
1.1752
0.0334
127.81
30/06/2013
0.0000
0.0000
0.0000
0.00
31/12/2012
4.6797
0.6163
0.0000
122.78
30/06/2012
4.1294
0.3264
0.0000
120.35
31/12/2011
4.0272
0.5263
0.0000
125.14
30/06/2011
3.9041
0.4810
0.0000
144.35
31/12/2010
1.8739
0.9442
0.0000
157.89
30/06/2010
0.0000
0.0000
0.0000
0.00
31/12/2009
0.7529
1.0746
0.0015
150.24
30/06/2009
0.4864
0.3452
0.0000
102.35
31/12/2008
1.4691
0.8807
0.0000
81.46
30/06/2008
1.3057
0.6713
0.0000
135.92
31/12/2007
10.9017
0.8971
0.0000
176.56
30/06/2007
12.1511
0.8346
0.0000
168.02
31/12/2006
5.3697
1.1095
0.0000
162.61
30/06/2006
14.4004
0.7622
0.0000
134.50
31/12/2005
2.0493
1.1184
0.0000
141.69
30/06/2005
4.8904
0.4072
0.0217
128.09
31/12/2004
12.3954
0.6166
0.0145
148.72
30/06/2004
0.2882
0.2102
0.0000
137.56
31/12/2003
9.7755
0.1196
0.0000
141.19
30/06/2003
0.0000
0.0000
0.0000
0.00
31/12/2002
0.0000
0.0000
0.0000
0.00
30/06/2002
0.0000
0.0000
0.0000
0.00
31/12/2001
0.0000
0.0000
0.0000
0.00
Ratings

Morning Star Logo
Morningstar

Rating: Neutral
Zenith

Approved
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Certification
R.I.A.A. Logo
Responsible Investment Association Australasia (RIAA) 1

Rating: Certified
Awards
AFR Smart Investor Blue Ribbon Awards 2010
Ethical/SRI Manager
(awarded to Hunter Hall)
Money Management Lonsec Fund Manager of the Year Awards
May 2011
AFR Smart Investor Blue Ribbon Awards 2010
Best International Small Cap Shares
(awarded to Hunter Hall)
AFR Smart Investor Blue Ribbon Awards 2010
August 2010
1 Hunter Hall has been certified by RIAA according to the stric discolsure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details

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