Lonsec upgrades PM CAPITAL’s Absolute Performance Fund to ‘Recommend’


PM CAPITAL’s Absolute Performance Fund has returned to RECOMMENDED rating status following a review from leading research house Lonsec.

Lonsec said its ratings upgrade reflects its increased confidence in PM Capital’s approach:  “Lonsec has been impressed the underlying consistency of the PM philosophy and the conviction of the investment views.”

“The fund’s contrarian style often sees PM CAPITAL investigating companies that have fallen out of favour with the broader market on the premise that negative factors are often short term and a company’s value will be restored in time.”

Lonsec notes that Paul Moore, PM CAPITAL’s Chief Investment Officer, is a highly experienced and seasoned investor and believes that his approach to funds management has been consistent over his long career. Included in the Lonsec report are the following observations:

“Lonsec considers PM Capital’s alignment of interest with investors is high… There is a strong culture of ‘eating your own cooking’ and staff investment in strategies… a significant portion of PM Capital’s retained earnings are also invested in the firm’s funds – adding to incentives to preserve capital”

PM CAPITAL’s CEO, Chris Donohoe said that “the return to recommended status is a reflection of both strong fund performance and corporate changes. These include a repurchase of non-working staff shares and a wider allocation of staff shares, lower fees and tightening risk management and portfolio guidelines. “

Donohoe said “over the last six months PM CAPITAL has raised $230M in two offshore equity LICs and our offshore equity FUM will move beyond $1Bn in August. The growth in demand for global equities is logical and ultimately based off the view that compared to the local market there is a greater breadth of opportunity, a better risk reward and all at a time when the currency is in the top quartile – it just makes sense”.

PM CAPITAL Absolute Performance Fund has achieved a total return of 209.4% since its inception in October 1998, which compares favourably against the MSCI World Index (Net Dividends Reinvested, AUD) total return of 46.9% (as at 30 November 2013). The Fund has returned 19.4% per annum over the previous 3 years.

You must be logged in to post or view comments.