DNR Capital equity fund recommended

Australian investment manager, DNR capital, has received a ‘recommended' rating by Zenith for its high conviction Australian equities fund.

The fund launched 12 months ago and was previously only available through DNR Capital's separately managed accounts (SMA) and individual managed accounts (IMAs), DNR Capital said.

The company's chief executive, Robert White, said the fund offered investors a concentrated exposure to Australian equities through 20 to 25 stocks. It was launched as a result of pent-up demand from financial advisers, and was also available on the major platforms.

In its rating process, Zenith said although the fund was in its infancy, DNR Capital had a long and successful track record managing individual and separately managed accounts, and the high conviction equities fund used essentially the same strategy.

DNR capital founder and chief investment officer, Jamie Nicol, said they looked for quality companies that had reasonable valuations, but stocks with the most defensive earnings streams were trading at a premium.

"As a consequence, we are finding value in some of the more contrarian opportunities, which we refer to as de-rated equity stocks such as Henderson Group and ALS limited, along with positions in stocks we feel are turning their businesses around such as Woolworths," Nicol said.

"Additionally, [DNR Capital] has retained exposure to a range of growth segments, like those exposed to the benefits of infrastructure spend, innovation and online market places," he said.

Based on Money Management's Investment Centre, (MMIC), we found that the DNR Australian Equities High Conviction fund returned 7.11 per cent year-to-date and 6.93 per cent this year, while over the last six months it retuned 14.46 per cent (net of fees).

To see how it performed against the benchmark, click here.