Emerging Resources Company Share Fund ranked 4th by Morningstar


The Emerging Resources Company Share Fund managed by boutique equity fund manager E.I.M. Capital Managers celebrated its fifth anniversary at the end of April. It achieved a 15.8% pa return over the five years putting it in 4th place in the Morningstar rankings of over 2,000 retail investment trusts in Australia.

“Our success comes from a focus on companies successfully executing growth strategies,” said John Robertson of E.I.M. Capital Managers.

“But from the beginning we also had a strong belief we were investing in a cyclical industry.  We expected to confront extreme volatility from time to time and positioned the portfolio to cope.

“We could not avoid the volatility in the market in 2008 and 2009 but our portfolio comprised stocks that could survive, recover and thrive,” said John Robertson.

In choosing stocks, E.I.M. searches for companies with the following characteristics:

  • a resource base sufficient for long-life operations
  • potential for growth
  • a technically robust operational plan
  • the necessary people and expertise
  • a low cost structure

E.I.M. remains committed to the idea of having a portfolio positioned for volatility and continually stress tests its investment opportunities against the possibility of a major cyclical downturn.
“We do not know when it will happen but history says we would be extraordinarily naïve to assume that after hundreds of years the cycles have suddenly disappeared,” said Mr Robertson

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