The Viburnum Live Fund is a $20,000 Fund partnered between UWA SMIF and Viburnum Funds. Named the SMIF-Viburnum 'High Conviction Fund' the portfolio is run purely by the SMIF Investment Division as a practical way to engage with the stock market using real money, proving to be an invaluable learning opportunity.
The Fund was established on April 21st 2015, and throughout the year four positions were successfully pitched to investment professionals from Viburnum, and the trades executed. The fund currently has positions in Altium (ALT) a software company providing electronic design software and tools for engineers, BigAir (BGL) an information and communications technology provider, GreenCross (GXL) a specialty pet care retailer, and Veda Group (VED) a data analytics company focusing on credit information and analysis however Veda Group’s position was closed as it was acquired by Equifax. As of the 30th of March 2016 these positions have proved to be successful, to joy of the SMIF Investments Team, outperforming the S&P ASX 200 by 18% and expected to continuing rising as the year moves forward. As such, in 2016 the Investments Division looks to build on the previous year’s success!
The information and support provided by Viburnum Funds has been crucial to prosperity of the fund so far. They provided valuable advice to the Investment Team regarding the identification and analysis of potential companies to take positions in. More specifically, the team looks for companies that complement the whole portfolio, have a market capitalisation of above $25 million, a Price/Earnings ratio between 5-30 and have a competitive advantage in their industry. After potential companies have been identified, further analysis is conducted on the company’s competitors, the industry outlook and potential, the financial statements and valuations of company plus any risks or potential downsides to the investment. Once all this is done, the analysis is organised and finally pitched to Viburnum, who will give feedback and then hopefully agree with the pitch and execute the trades to invest in the company.
In 2016, the SMIF Investments Team has spent hours conducting the process mentioned above and is currently developing a stock pitch to present to Viburnum. The company identified is Bulletproof Group Ltd (BPF) which is a leading Australia-New Zealand mission critical cloud service company. BPF is a market leader, has solid industry drivers and is successfully expanding into new markets, all on top of its strong financials. As such, the team hopes to add the stock to its portfolio to reap the benefits of BPF’s large potential!
SMIF hosts regular sundowners to update members with the progress of the live fund, providing an excellent opportunity to meet the committee and learn more about the reasoning behind our positions. If you’re interested in trading, then these sundowners can’t be missed!
Look forward to seeing you there,
UWA SMIF