The Fund offers investors a concentrated and benchmark-unaware exposure to Australian shares (25 – 40 stocks) and is managed by Chester Asset Management, a boutique Australian equity fund manager distributed by Copia.

The Fund Report dated 27 July 2020 states that Lonsec has “increased its conviction in Portfolio Manager Rob Tucker and the investment team who are well-aligned with investors and have developed a track record of outperformance since inception. The Manager has demonstrated willingness to make full use of its risk management tools and has successfully protected the Fund on the downside. The Fund is also attractive from a capacity standpoint, particularly relative to some larger peers.”

The Fund’s downside protection strategy, which includes investing in gold stocks and other listed assets not correlated with equities, is unique among high conviction managers and is designed to help protect investors’ capital when markets decline.

John Clothier, Copia General Manager Distribution welcomed the Lonsec upgrade noting that, “this upgrade comes at an exciting time for Chester with a recent institutional win and performance results that are bearing fruit for an investment team that has remained committed to their process through the recent market volatility. In this environment we believe a high conviction strategy such as Chester offers, is an ideal vehicle for investors to position their portfolios beyond the COVID cycle and get exposure to stocks that are attractive longer term.”

The Chester High Conviction Fund was launched in April 2017 and is based on a high conviction investment strategy that has been employed by the investment team since 2013. The Fund has returned 8.8% per annum (after fees) since inception to the end of July, 4.5% per annum ahead of the S&P/ASX 300 Accumulation Index.

The Fund is currently listed on the HUB24, Netwealth and Praemium platforms, with further placements being sought by Copia.

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