Prime Value Emerging Opportunities Fund given Recommended rating by Genium for Class B units

Investment consulting and research firm, Genium Investment Partners, has given a Recommended rating for the Prime Value Emerging Opportunities Fund (class B).

It’s Genium’s first rating for the Fund, and Genium says a Recommended rating reflects its belief that the Fund’s “…strategy has identifiable competitive advantages across several of Genium’s assessment criteria”.

Genium also described Prime Value Emerging Opportunities Fund Portfolio Managers, Richard Ivers and Mike Younger, as “…a commendable pair of investors”.

In its report, Genium said: “Emerging Opportunities mostly avoids the smallest end of the universe, applying its quality- and growth-driven approach with a clear eye on the longer-term outlook.

“We think it’s scalable, fostering confidence that past successes can be sustained.

“This process is sensible and executed methodically”, Genium said.

The Genium Recommended rating follows an upgrade to Highly Recommended by Zenith Investment Partners for the Prime Value Emerging Opportunities Fund in early 2024.

The Prime Value Emerging Opportunities Fund has outperformed the Small Ordinaries Accumulation Index for each of the last seven calendar years with volatility around 20% below the index.

This consistency of performance has come against a varied and often volatile market backdrop including bear markets, bull markets, Covid, low interest rates and high interest rates.

Prime Value Asset Management Portfolio Managers, Richard Ivers and Mike Younger, said change and volatility can bring longer term investment opportunities.

“Markets are currently in flux due to uncertainty and the Trump tariffs, but we know the way forward is to be disciplined and methodical”, Ivers said.

“While there may be some discomfort in the short term we know from previous market cycles that volatility can allow us to buy into quality smaller companies at more attractive prices, with benefits over the medium to longer term.”

Mike Younger said the Fund has a strong track record of being able to capitalise during down markets. “Portfolio construction has been a big driver of returns, and striking a balance between companies with resilient earnings and higher growth stocks.

“We build resilience into the portfolio, which has seen the Fund outperform during down markets about 80% of the time.

“This resilience allows us to capitalise on the opportunities market volatility often presents”, Younger said.

Class B units were introduced for the Prime Value Emerging Opportunities Fund in early 2024, using the Small Industrials Accumulation Index as its benchmark, the most comparable index given the fund does not invest in mining companies.

The Prime Value Emerging Opportunities Fund Class A units has invested to a 8% p.a. absolute return benchmark since inception in October 2015.