Perennial Value Smaller Companies Trust Performance Review | News

What is the Perennial Value Smaller Companies Trust fund?

Perennial Value Smaller Companies Trust invests in a range of smaller listed companies predominantly outside the ASX top 100 Index which Perennial Value believes have sustainable operations and whose share price offers good value. The cornerstone of this approach is a strong emphasis on company research. Aims to provide a total return (after fees) that exceeds the S&P/ASX Small Ordinaries Accumulation Index measured on a rolling three-year basis.

The portfolio will hold in the range of 30 to 60 stocks. Typically, the portfolio holds, on average, approximately 50 stocks.
The Perennial Value Smaller Companies Trust was the winner of the 2018 Professional Planner I Zenith Fund Awards within the Australian Equities Small Cap category.
Suitable for investor seeking exposure to a portfolio of smaller ‘value oriented’ companies with five years or more time horizon.

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Growth of $1000 Investment Over Time

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Latest News & Updates For Perennial Value Smaller Companies Trust

Perennial Value Smaller Companies Trust Fund Commentary September 30, 2023

The Trust was down 4.1% inline with the Index which was down 4.0%. Financials markets were clearly in a risk-off mode again with long term bond rates moving higher and pockets of stubborn inflation around the world.

Gold names, which were strong in the prior month, reversed their gains and stock performance outside this was mixed.

Given results were released in August, there was very little in the way of stock news. It was, however, the first chance for directors to trade post results as well as companies to commence buy-backs once the market had digested result announcements.

For our portfolio the signaling here was positive:
– 16 directors buying (2 selling)
– 8 active buybacks across the portfolio

Given the weak macro backdrop, such positive signaling from those closest to the fundamentals of the company was encouraging. We used the month to further engage with our portfolio companies on corporate strategy and governance and continued to build further conviction in the fundamentals.

The portfolio-average PE ratio of 11.2x remains at a sizeable discount to the index which is 17.0x for FY24.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

Performance Review
Product Overview
Peer Comparison
Product Details

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Perennial Value Smaller Companies Trust	2.89%	2.54%	23.48%	-5.88%	8.77%	13.66%	17.22%	17.66%	-7.29%	-39.41%	-47.89%

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Perennial Value Smaller Companies Trust	IOF0214AU	Managed Funds	Domestic Equity	Australian Mid Cap	Domestic Equity - Mid Cap Index	ASX Index MidCap 50 Index	175.06 M	1.2%	0.00%	0.6%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Perennial Value Smaller Companies Trust	Domestic Equity - Mid Cap Index	-0.69%	-3.51%	NA%	NA%	NA%	1.1	6.09%	5.85%	0.91	0.94

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Perennial Value Smaller Companies Trust	Yes		-	https://perennial.com/	-

Product Due Diligence

What is Perennial Value Smaller Companies Trust

Perennial Value Smaller Companies Trust is an Managed Funds investment product that is benchmarked against ASX Index MidCap 50 Index and sits inside the Domestic Equity - Mid Cap Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Perennial Value Smaller Companies Trust has Assets Under Management of 175.06 M with a management fee of 1.2%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The Trust was down 2.2% compared to the Index which was down 1.3%. Reporting season meant significant volatility against the backdrop of weaker global markets. Our holdings in Gold names performed well in such markets with Bellevue Gold and Genesis up 16.6% and 8.8% respectively.

Given recent guidance in July from many of our holdings, the only genuine surprises were from the likes of GUD Holdings (up 21.8%) and Premier Investments (up 16.1%) contrasted by negative news from smaller positions such as Aeris Resources (down 36.8%) and Genetic Signatures (down 28.7%).

In some cases, the macro concerns were enough to distract investors from situations at companies where genuine progress was announced but is yet to be rewarded by investors. As examples, Lark (up 4.4%) with a renewed debt facility and an export deal in Malaysia, Envirosuite (down 15.2%) despite gross margins lifting from 47.9% to 51.6% and Enero (down 12.8%) despite moves to unlock shareholder value by selling their stake in OBMedia – all appear to have positive catalysts in the short-term so we expect investors to soon take note. Two new stocks made a positive impact to the Trust with News Corp (up 14.9%) and DUG Technology (up 12.9%).

The portfolio-average PE ratio of 11.8x remains at a sizeable discount to the index which is 18.1x for FY24.

Performance Commentary - July 31, 2023

Performance Commentary - June 30, 2023

Performance Commentary - May 31, 2023

Performance Commentary - April 30, 2023

Performance Commentary - March 31, 2023

Performance Commentary - February 28, 2023

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Perennial Value Smaller Companies Trust (IOF0214AU) Report & Performance