Ranger Fund

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Annualised Returns Since Inception

6.63%

As at 31/05/2024

Recommended Timeframe

5+

years

Risk Indicator

5

Risk scale
1234567
Lower Risk
Higher Risk

Product Disclosure Statement (PDS)

20 January 2023

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Monthly Factsheet

31 May 2024

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About the Ranger Fund

The Castle Point Ranger Fund's objective is to prioritise long-term capital growth through investing into carefully selected NZ and Australian assets, with a focus on shares.

The Fund can invest in a broad range of New Zealand and Australian assets, including equities, cash, debt instruments, derivatives and other assets.

When suitable, the Fund may use strategies that seek to reduce the impact of large market downturns.

The performance objective of the Fund is to outperform the NZ Official Cash Rate by 5% per annum over the long-term, after all fees (and other expenses) but before tax.

How the fund is built:

  1. We search for opportunities in Australasian companies that meet our criteria
  2. If we can’t find any compelling opportunities, we hold onto defensive assets such as cash and/or fixed interest (loans) until we find one
  3. We also look to reduce exposure to large market drops by using financial instruments (if available and reasonably priced) that we can set up to act as insurance against market crashes

Read all about the strategy...

Performance Overview

Returns as at 31 May 2024 (after fees before tax)

Ranger Fund

1 month

3 months

6 months

1 year

3 years (p.a)

5 years (p.a)

Since inception (p.a)

1 month

3 months

6 months

1 year

3 years (p.a)

5 years (p.a)

Since inception (p.a)

1 month

3 months

6 months

1 year

3 years (p.a)

5 years (p.a)

Since inception (p.a)

Recommended Investment Timeframe

Minimum 5 years

Objective

NZ Official Cash Rate + 5%

Minimum Initial Investment

$10,000

Minimum Additional Investment

$1,000

Buy / Sell Spread

0.15% / 0.15% of each investment / redemption. Variable spread applies that will net buys and sells on the same day. Applies from 20 February 2023

Entry / Exit Fees

Nil

Management Fee

1.05% per annum which covers our management fee and normal operating expenses of the fund

Performance Fee

The performance fee is 15% of any return above NZ Offical Cash Rate + 5% per annum (after all fees but before tax) with a perpetual high water mark

Fund Type

NZ Managed Investment Scheme (MIS). The fund is a Portfolio Investment Entity (“PIE”)

Supervisor

Public Trust

Auditor

PwC New Zealand

Administrator and Custodian

Apex Investment Administration (NZ) Ltd

Establishment Date

24th January 2014

Our Recognitions

Investment Strategy

We invest in company shares via the Share Market.

Investing is purchasing a company or asset that can generate and grow income over time. Speculating is purchasing something with no regard for its ability to generate income – just in the hope that its price will go up.

Shares are ownership portions of a company, and a company is a productive asset. So, when we consider investing in shares, we consider the underlying company’s ability to generate returns over time.

The share market (also known as the stock market) is like owning a house, only each day somebody new knocks on the door to offer you a new price for the house. Nothing about the house itself changes, but each day you are offered a different price, sometimes an extremely high price and sometimes an extremely low price. The same principle applies to the share market. It takes time for a company to change, yet that company’s share price can bounce around in the short-run to sometimes be extremely high and sometimes be extremely low.

These differences in price and underlying company value are what we take advantage of. We buy shares in a companies when our analysis shows that the company’s share price does not accurately reflect the long-term value of the business, also known as its intrinsic value. The intrinsic value is based on our long-term view of the company’s future earnings.

We choose companies with long-term value that is not reflected in their share prices

We look for companies with long-run prospects that are not reflected in their share prices – i.e. when our analysis shows that the company’s share price does not accurately reflect the long-term value of the business.

We believe this happens because the market is often short-term in its outlook, like what the company might earn next year rather than over the next five years.

We find the best investment opportunities fit into the following categories:

  • Deep Value
  • Value
  • Mid-Cap Grower
  • Moat
  • Opportunistic
Deep Value

A Deep Value company has a share price that is lower than the value of shutting down its operation and selling all its assets/paying off its debt (its ‘liquidation value’), plus a margin of safety (an extra buffer of ‘cheapness’ to be safe). This means that if the company was to close and sell all its assets, the shareholders would actually receive more than selling its shares to the market.

These extremely low prices occur when the company has disappointed the market so badly, and for so long, that the market has forgotten the value of the company’s underlying assets.

While we do not invest with the aim of liquidating assets to realise shareholder value, we get comfort from understanding the market value of assets along with the margin of safety.

Value

A Value company has gone through a period of disappointing performance, which could be a result of wider economic factors that the company has no control over, or poor decisions that were clearly wrong in hindsight. However, companies generally adapt and recover.

For a company to fall into this category, we need to be convinced that a turnaround is possible, which may require a change in management. The market (share price) won’t often reflect the turnaround until well after it has occurred but will eventually.

Mid-Cap Grower

Mid-Cap Growers are high-quality, profitable (often mid-sized) companies with substantial growth opportunities and excellent management in place. They have an effective innovation engine that keeps them competitive, along with a long-term strategy that continuously drives them forwards.

Moat

A Moat company has high barriers to entry, making it hard for others to compete and take market share from it. The high barriers to entry allow Moat companies to earn above-average returns for longer than many expect. Moats can include a combination of ownership of unique assets, brands, and networks, or having substantial benefits of scale and supplying products and services with high switching costs.

Opportunistic

An Opportunistic company is one that has many attractive qualities but falls outside our other categories. It may, for example, have the potential to produce substantial upside, but be quite an early-stage (i.e. riskier) company. Opportunistic positions will only ever make up a small allocation to the overall fund. They may start as a small allocation, but the idea is their upside means it may grow to be larger, sometimes quickly.

Access Ranger Fund Documents

Morningstar Rating™

Castle Point Ranger Fund received a 2 Star Overall Morningstar Rating™, a 1 Star 3-Year Morningstar Rating™, a 1 Star 5-Year Morningstar Rating™ and a 2 Star 10-Year Morningstar Rating™ out of 30 funds for Overall and 3-Year, 25 funds for 5-Year and 19 funds for 10-Year in Equity Region Australasian funds as of 30.4.2024

Morningstar Disclosure

© 2023 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at www.morningstar.com.au/s/fsg.pdf and www.morningstar.com.au/s/fapds.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

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