“The person that turns over the most rocks wins the game”
– Peter Lynch
The Westferry Fund is open to wholesale and sophisticated investors who wish to invest alongside its founder and investment manager, Peter Johns. The fund commenced on 1 January 2021 and was seeded with the assets of a private investment company called Three Hundred Capital. The Westferry Fund will continue the investment approach adopted by that company at its inception in 2016 – www.threehundredcapital.com
The fund invests predominantly in small and micro-cap ASX listed companies, though it also holds investments in fixed interest and debt securities, private managed funds and international shares.
The fund favours investments in unusual, unnoticed or ignored opportunities; not because they are unconventional, but because their nature and/or their illiquidity allows us to be one of the most knowledgeable players in the market. This is an opportunity rarely available to much larger funds trading in more liquid markets.
| AFS Licence Number: | 302802 |
| Minimum Initial Investment: | $50,000 |
| Subsequent Investment: | No minimum. |
| Management Fee: | 1% (plus GST) per annum |
| Performance Fee: | 10% (plus GST) of investment gains after accounting for the management fee and all costs) |
| High Water Mark: | Any losses must first be fully recouped before any performance fee starts to accrue |
| Withdrawal Fee: | Zero |
| Buy spread: | Zero |
| Sell spread: | 1% |
| Expense Reimbursement: | <0.3% |
| Distributions: | Annually |
| Re-investment: | Unitholders can elect to automatically re-invest their distribution |
| Entry timing: | New and subsequent investments accepted on the first of each month. |
| Exit timing: | On demand with one-month notice. |
| Reporting: | Monthly fund report |
| Unit price calculation: | Monthly |
| Tax Reporting: | Annual tax statement provided |
| Funds Transfer: | Once an application is received and accepted, bank details for the fund will be provided for electronic transfer of investment amount. |
FEATURES OF THE FUND
TRANSPARENCY
In addition to a monthly report, unitholders are entitled to disclosure of the full investment holdings of the fund at their request. The current unitholder register can be obtained at any time.
The fund engages an independent auditor to produce an asset verification report every 6 months and a copy is provided to investors.
FRUGALITY
The fund has very low overheads in relation to peers. The management fee is similar to, or lower than, most other boutique funds. It is higher than the fee available on, for instance, an index fund. This reflects the significant out-performance to date of our investment strategy in comparison to those funds.
CO-OWNERSHIP
The Investment Manager has all of his own liquid assets invested in the fund. This is not an attempt to create a funds management business with a focus on collecting fees. The Westferry Fund is the only fund operated by the Group. All the best investment ideas go into the one fund and the aim of the manager is to grow wealth through investment returns as a co-investor – not through the collection of fees.
The Investment Manager undertakes to advise investors via this website every time he invests further money in the fund.
EXCELLENCE
If the Westferry Fund is unable to provide better returns over rolling 3-year periods than comparable investment options (i.e. low fee ASX linked index funds) then you should seriously consider re-allocating your investment to them.
RISK
The investment strategy carries with it all the usual risk associated with equity investments and market fluctuations but will also be more heavily weighted than most funds to smaller, less liquid stocks. This is done for a reason; namely, that these are precisely the markets in which it is easier to obtain an information based competitive advantage – but it can lead to higher volatility.
The fund does not short stocks, does not use leverage to fund equity or debt investments and does not use derivatives.
FAQ
What happens to the fund in the event that you are no longer in a position to manage it?
The fund won’t be taken over by another manager. In the event that I am unable to continue due to death, illness or incapacity the fund will be wound up and proceeds returned to investors under the supervision of the trustee.
What happens to franking credits the fund receives via dividends paid to it?
As a trust the fund does not pay tax at an entity level. All gains whether they be income, capital gains or franking credits are distributed to investors annually. The precise figures will be set out for each investor in an annual tax statement. The franking credits can then be used by the individual investor as part of their own tax return calculations.
Peter Johns
Director and Investment Manager