Transparent, easy to understand and value for money, new Australian equities boutique fund manager Naked Funds Management Pty Limited (NakedFunds), which officially launched its inaugural fund, the NakedFunds Australian Share Fund (the Fund) in Sydney today, addresses the triple whammy challenge facing investors.
By investing as little as $100 in the fund, investors will join one of the most innovative fund managers in the market – a manager that engages, encourages and rewards input from both investors and potential investors alike.
Founder and CEO, Tim Bryden, says the philosophy behind NakedFunds was born during the GFC when he recognised that investors want to know and understand what they are investing in.
“NakedFunds is true to label,” he says. “Unlike most fund managers, we reveal all of our holdings and all of our trades. This means the typical ‘smoke and mirror’ scenario around how a fund is managed and what it invests in are removed.”
The NakedFunds Australian Share Fund aims to provide investors with capital growth and performance in excess of the S&P/ASX All Ordinaries Accumulation Index over a period of at least five years.
By embracing online capabilities, NakedFunds directly engages investors and potential investors so they can understand why investment decisions are being made.
“To participate, people become members. It’s free to join and the process is simple, similar to signing up to Facebook,” Mr Bryden explains. “Once signed in, members can share their opinion on a weekly-basis about a specific investment focus each month.”
Members are asked to respond to a handful of online multiple-choice questions, some of which are knowledge-based, opinions or predictions.
“The answers to these questions are then published on our website, further educating our members about a particular sector,” Mr Bryden says. “They get a feeling for some of the key issues and an understanding of the companies which we may ultimately invest in.”
This information is combined with the sophisticated investment research, analysis and valuation modelling carried out by NakedFunds’ investment committee and is regarded as a highly valuable input into the decision-making process of the Fund.
“The philosophy behind this progressive communication model is that everyone has a valuable contribution to make,” Mr Bryden says. “And by engaging with our members, we believe we gain a unique investment edge. Our investment committee takes a deeper look and may even potentially change its thinking on a stock or trend if members’ insights are a surprise or are at odds with what the market thinks.”
And for their contribution, NakedFund members are rewarded. Each month, members who earn the most points for their contributions receive a reward in the form of units in the Fund.
“Each member also has their own status which measures their historical feedback,” Mr Bryden explains. “With every status level, members receive further benefits including ongoing fee rebates. Up to 70% of the fund’s fee could be rebated through this reward system. That’s what we call value.”
