Managed Funds - Value Growth Trust

Overview

Established on 2 May 1994, the Hunter Hall Value Growth Trust (VGT) is principally invested in an ethically screened global portfolio of manufacturing, service and distribution businesses. The objective of the VGT is to increase the wealth of its investors by substantially outperforming the global stockmarkets, benchmarked by the MSCI World Total Return Index, Net Dividends Reinvested, in Australian Dollars (MSCI World), over the medium to long term without incurring significant risk to capital.

Key Information

Inception Date
2 May 1994
Investment Objectives
To increase the wealth of its investors by substantially outperforming the global stockmarkets, as benchmarked by the MSCI World Total Return Index, Net Dividends Reinvested, in Australian Dollars (MSCI World), over the long term without incurring significant risk to capital 1
Territory
Global (includes Australia and New Zealand) 
Ethical Policy
Negative screen
Recommended Investment Time Frame
5 years+
Minimum Initial Investment
$5,000
Distributions 2
30 June and 31 December
Entry Fee
4% of which all may be rebated
Management Fee 
1.60% per annum
Management Fee Rebate
Nil
Performance Fee 1
15% of any return greater than the All Ords, payable half yearly
Advisor Remuneration
Nil
MER 3 to 30.06.2013
1.80% (excluding performance fee)
1.80% (including performance fee)
Regular Savings Plan
Yes - minimum $200 per month
Hedging Policy
Yes – up to 100% of the foreign currency exposure may be hedged primarily through short to medium term forward contracts

1. Hunter Hall believes that, due to the VGT's stock composition and its international focus, it is more appropriate for the Fund's investment objective and portfolio performance to be measured against the MSCI World. Whilst the MSCI World was adopted as the Fund's performance benchmark in 2007, the benchmark used to calculate the Fund's performance fee since inception in 1994 has been, and continues to be, the Australian All Ordinaries Accumulation Index (All Ords).

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

3.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 31/03/2014

VGT
MSCI
World
Relative
Performance
(VGT vs MSCI)
All Ords
Relative
Performance
(VGT vs All Ords)
3 months
1.5%
-2.3%
3.8%
2.2%
-0.7%
6 months
7.8%
10.3%
-2.5%
5.7%
2.1%
1 year
24.7%
33.9%
-9.2%
13.2%
11.5%
3 years
6.0%
14.3%
-8.3%
7.7%
-1.7%
5 years
13.2%
11.7%
1.5%
13.5%
-0.3%
7 years
3.0%
1.6%
1.4%
2.9%
0.1%
10 years
7.3%
4.8%
2.5%
9.2%
-1.9%
15 years
10.9%
1.5%
9.4%
8.4%
2.5%
Since inception (02.05.1994)
13.2%
5.6%
7.6%
9.3%
3.9%
MSCI World refers to the MSCI World Total Return Index, Net Dividend Reinvested, in A$. All Ords refers to the All Ordinaries Accumulation Index and is the benchmark for Performance Fees. 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 VGT since its inception on 2 May 1994, compared to a net investment of $10,000 in the MSCI World and the All Ords. The VGT figure is net of fees including, but not limited to, the management fee of 1.6% per annum and the 15% performance fee.
'All Ords' refers to the All Ordinaries Accumulation Index. 'MSCI World' refers to the MSCI World Total Return Index, Net Dividends Reinvested, in A$. All returns are on a pre-tax basis. Past performance is no guarantee of future performance. Source: Hunter Hall, Bloomberg.
Financial Year End Returns
Value Growth Trust (% per annum)
VGT
MSCI World
All Ords
Financial YTD 2014
19.5
16.8
17.1
Year to June 2013
20.4
32.8
20.7
Year to June 2012
-11.4
-0.8
-7.0
Year to June 2011
7.6
3.0
12.2
Year to June 2010
16.2
5.5
13.8
Year to June 2009
-22.0
-16.3
-22.1
Year to June 2008
-12.3
-21.0
-12.1
Year to June 2007
29.6
8.2
30.3
Year to June 2006
30.1
20.0
24.2
Year to June 2005
12.4
0.6
24.7
Year to June 2004
28.9
19.4
22.4
Year to June 2003
2.0
-18.3
-1.1
Year to June 2002
10.0
-23.3
-4.5
Year to June 2001
13.6
-5.8
8.8
Year to June 2000
36.2
23.7
13.7
Year to June 1999
18.7
8.2
15.3
Year to June 1998
17.7
41.6
1.6
Year to June 1997
53.7
28.5
26.6
Year to June 1996
36.2
6.7
15.8
Year to June 1995
-6.2
14.1
5.7
2 months to June 1994
-6.4
-2.4
-2.9
Top Ten Holdings at 31/03/2014
Company
Main Business
Country
% of Net Assets
at Market Value
Sirtex Medical
liver cancer treatments
Australia
16.4
M2 Telecommunications
telecommunications
Australia
4.3
Danieli
metal processing machinery
Italy
3.7
Afren
oil and gas exploration and production
UK
2.6
AMP Capital China Growth Fund
listed investment company
China Hong Kong
2.2
Maca Limited
engineering services
Australia
2.1
NCR Corporation
consumer transactions
USA
2.1
JDS
optical components
USA
2.0
Bank of New York Mellon
financial services
USA
2.0
Retail Cube
consumer discretionary
Australia
1.9
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 VGT's unit price has grown from $1.00, at inception on 2 May 1994, to $2.6252 at 31 December 2013. Of the 40 six-month periods over the life of the Fund, the VGT has made a distribution on 33 occasions.

Click here for the Distribution Report for the period to 31 December 2013.

Distribution History

Year ended
Cash per Unit
Australian
Franking Credits
(per unit)
Foreign
Tax Credits
(per unit)
Reinvestment
Price
31/12/2013
0.0000
0.0000
0.0000
0.00
30/06/2013
0.0000
0.0000
0.0000
0.00
31/12/2012
0.0000
0.0000
0.0000
0.00
30/06/2012
1.2276
0.2014
0.1783
185.12
31/12/2011
2.8205
0.3484
0.1032
182.45
30/06/2011
3.0570
0.1938
0.1842
213.64
31/12/2010
2.2686
0.4155
0.0261
224.04
30/06/2010
4.3144
0.1562
0.1931
204.37
31/12/2009
5.5458
0.3356
0.0535
222.70
30/06/2009
0.9293
0.3216
0.1813
203.46
31/12/2008
0.0000
0.0000
0.0000
0.00
30/06/2008
3.2159
0.1064
0.2171
235.97
31/12/2007
31.1091
0.1679
0.1633
269.36
30/06/2007
26.4682
0.1877
0.2405
304.31
31/12/2006
20.5579
0.1608
0.1127
295.80
30/06/2006
11.4551
0.1039
0.3283
272.97
31/12/2005
18.8347
0.2444
0.0321
252.34
30/06/2005
12.7597
0.0407
0.3038
234.92
31/12/2004
10.4833
0.2670
0.0502
241.96
30/06/2004
8.1154
0.1482
0.1876
229.94
31/12/2003
10.8575
0.0050
0.2127
231.76
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
4.7218
0.1314
0.2645
189.46
31/12/2001
7.8624
0.1087
0.0000
200.12
30/06/2001
4.9002
0.1426
0.0031
183.50
31/12/2000
9.2098
0.1627
0.0270
168.86
30/06/2000
14.9208
0.3106
0.0097
174.89
31/12/1999
14.5434
0.4766
0.0000
179.09
30/06/1999
3.9062
0.3715
0.0000
150.71
31/12/1998
3.9752
0.0229
0.0581
148.31
10/11/1998
20.0000
0.6279
0.0000
139.80
30/06/1998
8.2221
0.6627
0.0000
152.89
31/12/1997
7.3300
1.0486
0.0000
145.57
30/06/1997
9.3700
1.0164
0.0000
143.76
31/12/1996
6.7900
1.4180
0.0000
126.62
30/06/1996
9.7200
0.7978
0.0252
104.99
31/12/1995
3.4200
0.0000
0.0000
101.25
30/06/1995
0.8300
0.0000
0.0000
87.04
31/12/1994
0.0000
0.0000
0.0000
0.00
30/06/1994
0.0000
0.0000
0.0000
0.00
Note: The 30 June 2009 distribution for the VGT was paid in August 2010.
Ratings

Morningstar

Rating: Negative
Lonsec Logo
Lonsec

Rating: Investment Grade
Zenith

Approved
Click here to view the disclaimers regarding ratings
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
AFR Smart Investor Blue Ribbon Awards 2008
Best International Small Cap Shares
AFR Smart Investor Blue Ribbon Awards 2008
July 2008
Money Magazine Best of the Best Awards 2008
Best International Equities - Specialty Fund - Silver Award
Money Magazine Best of the Best Awards 2008
December 2007
AFR Smart Investor Blue Ribbon Awards 2007
Best International Small Cap Shares
AFR Smart Investor Blue Ribbon Awards 2007
July 2007
Personal Investor Magazine Award
Balanced Fund of the Year
Personal Investor Magazine Awards for Excellence in Financial Services 2004
July 2004
Personal Investor Magazine Award
Multi Sector 70 Plus - Fund of the Year
Personal Investor Magazine Awards for Excellence in Financial Services 2003
August 2003
Ethical Investor Magazine
Ethical Fund of the Year
Ethical Investor Magazine
November 2002
Personal Investor Magazine
Boutique Fund of the Year - Judges Choice Award
Personal Investor Magazine Awards for Excellence in Financial Services 2002
July 2002
1 Hunter Hall has been certified by RIAA according to the strict disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.


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