Author: Dhruvi Dhomse

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LICs Sectors

Qualitas Real Estate Income Fund Raises $171.6m through entitlement offer

Portrait of handsome man smiling and listening to female manager while discussing contract in meeting, copy space

The main Business area of Qualitas Real Estate Income Fund are Financial Services, Asset Management & Investment. Their Market Capitalisation is also 601.60 million. 

Net Profit till June 2021 is 22.93 Million while Revenue is 29.81 million. Net Tangible Asset per unit is $1.6054 Till 22 November 2021.

QRI Financial Summary

QRL Financial Summary.png

On 7 October 2021, QRI announced they were seeking to raise up to $214m through a 1-for-2 pro-rata non-renounceable entitlement offer to eligible unitholders and a shortfall offer to new investors at an Offer price of $1.60 per unit.

There was strong demand for the Offer with QRI raising $171.6m. The raise takes the total capital of the Trust to $599.6m.

The capital raised will be invested as per the investment strategy of the Trust, with the raising providing unitholders the benefits of greater liquidity and portfolio diversification.

The Manager will waive its management fee with respect to any uninvested capital raised from the Entitlement Offer, ensuring unitholders are not paying fees on idle capital. We view this as a significant positive for unitholders.

Company Profile 

Qualitas Real Estate Income Fund is a listed investment trust incorporated in Australia. The Fund aims to achieve a Target Return of 8% p.a. and provide monthly cash income, capital preservation, and portfolio diversification. The Fund will invest in a portfolio that has direct or indirect exposure to Australian and New Zealand secured real estate loans.

(Source: FN Arena, Intelligent Investor)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds Research Sectors

Bennelong ex-20 Australian Equities Fund: distils returns of the 20 largest companies on ASX

The Fund is suitable for investors seeking to distill out the influence of the returns of the largest 20 listed companies on the ASX and looking to tilt towards growth. As a result, the fund invests in stocks outside of the top 20 subsets of the market but with at least a minimum of $250m market cap. The manager is more of a purist stock picker who seeks to invest in companies he feels are on a genuine earnings growth path and feels that such companies are not common and to find these companies requires thorough and focused bottom up research process.

Investment Team:

The BAEP investment team consists of Mark East: Chief Investment Officer and Portfolio Manager, Keith Hwang: Director, Quantitative Research, Neale Goldstone-Morris: Senior Investment Analyst, Strategy, Kieran Sisson, Doug Macphillamy, Brad Clibborn, Jack Briggs: Senior Investment Analyst and Todd Briggs: Investment Analyst

Key Highlights:

  • The manager conducts deep dive, bottom-up research on companies it invests in. With a thorough understanding of their stock positions, the manager takes high conviction and genuinely active bets relative to the benchmark.
  • The fund has been investing since 2009 – the immediate aftermath of the global financial crisis. Since then, there have been several periods where market volatility has tested the manager’s ability to generate returns while following their investment process.
  • The Fund’s focus on stocks outside of top 20 ASX listed companies provides investors an opportunity to diversify and distil growth from typical core domestic equity strategies that are heavily influenced by the performance returns of shares in the top 20 listed companies.
  • The team of eight experienced analysts includes the PM.
  • The fund’s macro analyst provides top down insights on the macro and guides the team to where the team should focus their research.

Downside Risks: 

• An economic recession in Australia/globally, leading to earnings recession

• Stock selection fails to yield alpha 

• Key man risk – the PM (Mark East) departs – given he has the ultimate responsibility of running the strategy

Investment Process:

  • From all of the stock listed on the ASX, BAEP applies a screen to derive an Investment Grade Universe from which to find investment opportunities. The filters include a market capitalisation of greater than $250 million, sufficient liquidity, an earnings track record.
  • Idea Generation aims to identify those stocks within the Investment Grade Universe that warrant particular attention, thereby focusing research efforts on the most prospective candidates. The ideas build up into the Focus List.
  • Stock analysis is extensive and includes quantitative and qualitative analysis including field research.
  • Portfolios are constructed on a stock-by-stock basis. The inclusion, sale and weighting of a particular stock is determined by reference to a number of factors
  • The portfolio is constantly monitored, tested and optimised with ongoing changes.

Performance:

Fund Positioning:

About Fund:

The Fund’s objective is to outperform the S&P/ASX 300 Accumulation Index excluding the portion of return attributed to the S&P/ASX 20 Leaders Index, by 4% p.a. after fees on a rolling 3-year basis. The Fund invests primarily in Australian shares with high quality business models, strong growth, and underestimated earnings momentum and prospects.

(Source: Banyantree)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.