IML adds concentrated Oz shares fund

By Penny Pryor

Investors Mutual has launched a concentrated active Australian shares fund on the Australian Stock Exchange. The fund invests in a high-conviction portfolio of 20 to 30 Australian stocks.

The fund, managed by senior portfolio manager and head of investment management, Hugh Giddy, seeks out high-quality, undervalued companies listed on the ASX, typically above A$500 million in market cap.

"I'm not driven by the benchmark or the weightings in the benchmark. I come to my weightings very much just based on liquidity and quality and what the valuation tells me about how that quality is being appreciated or not appreciated by the market," Giddy says.

Giddy said it was possible for the fund to achieve alpha without having a huge amount of risk.

"A concentrated fund often is thought of as a satellite fund ... but I think it could be a core investment for investors because I think most investors are looking for a more concentrated number of holdings and a high level of and conviction around stock holdings," he said.

The fund has a management fee of 0.993 per cent per annum of the net assets of the fund (inclusive of the net effect of GST) and is also available as a traditional managed fund.