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Fund Information

Restart Date: 1 Jan 2020​

Type of Fund: Limited company​

Mandate: ASX Resources outside the ASX 100 Index

Benchmark: S&P ASX Small Resources Index

Style: High Conviction​

Portfolio Stocks: 10-25

Max. Cash: 50%​

Performance Hurdle: 10% per annum​

Man. Fee: 2%+GST (suspended until 30 June 2021)​

Perf. Fee: 20% of returns in excess of the benchmark  (suspended until 30 June 2021)​

Fund Pricing: Monthly​

Distributions: As Approved

Fund Reporting: Monthly

Fund Overview

Share Price: $0.2404

The AFM Perseus Fund is a high conviction investor in the Australian small resources sector, being those resource and mining services companies outside the S&P ASX 100 Index. The Fund will hold between 10 and 25 stock positions with a maximum cash weighting of 50%.

This fund has been repositioned with an expanded investment mandate and a new investment management team. The restart date is 1 January 2020.

The investment manager adopts a three step investment process which includes an evaluation of market conditions (MARKET), an assessment of the macro environment and geopolitical conditions (MACRO) and an assessment of specific companies based on our 5 Bricks evaluation process which analyses companies according to valuation, management strength, business strength, financial strength and responsible investing (MICRO).

More specifically, we blend a “top down” approach to identify favoured commodities with a “bottom up” approach to select good quality / good value companies exposed to favoured commodities. A favoured commodity may be one that is in favour now, such as Gold, or a commodity that is out of favour and represents a compelling countercyclical opportunity – such as battery metals.

The Fund is likely to exhibit greater volatility as it focuses on the small companies in the resource space.

Performance History

**New investment mandate and investment committee commenced 1 January 2020

Illustrates the performance of an initial $1,000 investment in AFM Perseus Fund and the S&P ASX Small Resources Index at the restart date of the Fund (1st January 2020). Assumes all dividends are reinvested back into the Fund.

In March 2021, AFM Perseus Fund completed a capital raise of $655,634 at 20 cents / share (Feb 2021 price – 23.39 cents / share). This capital raise had a diluting impact on the share price, equating to approximately 7% of the Fund’s performance.

AFM Perseus Fund Ltd Prospectus Notice

Prospectus Q&A and Performance Update

David Franklyn, Head of Argonaut Funds Management, provides an update on the Fund’s performance and outlook, and answers questions regarding the Prospectus Offer.