FAQs for investors

As an independent fund manager, entirely owned by its staff, we manage your money (and ours) to create wealth. The fund manager has historically generated attractive returns. There are naturally no guarantees as to what will the returns be in the future. Time will tell ...

The Fund Manager, JBS Investments Australia Holding Pty Limited ABN 30 146 553 648, holds Australian Financial Services Licence No 401 869.

Value investing, the investment philosophy employed by JBS Investments, is a risk-adverse and conservative way of investing. Preservation of capital comes first with the aim of reducing the risk of losing money on a fundamental basis. Long-term investment decisions based on business fundamentals coupled with an unwillingness of overpay for any company.

Value investors look to invest in great companies that are trading below their true (or intrinsic) value for some identifiable reason. Central to investing in these discounted shares, where the business is worth more than the market price, is the concept known as the margin of safety. A margin of safety is necessary because valuation is an imprecise art, the future is unpredictable. The margin of safety concept distinguishes value investors from all others, who are not as concerned about avoiding loss. By emphasising preservation of capital in this way, the upside (capital growth) tends to take care of itself.

Historically, value investing was associated with a cheap share price multiple relative to assets. This measure  has lost significance over time as many businesses have become less capital intensive. Production can be outsourced, IT requirements have decreased etc. As a result, a business that is cheap relative to its assets may not correlate to being cheap to its earnings as much as was the case historically.

Our definition of value relates to purchasing businesses that generate streams of sustainable free cash flow at cheap multiples on an absolute basis and relative to comparable companies.

Like many things in life, there is "always a better time" - but the key to generating great returns is to identify a sensible strategy and get started.

Yes, management of the fund manager are invested in the Firm’s investment products. The majority of the investment staff maintain the bulk of their net worth in the funds alongside that of their clients.

As a result, we ‘eat our own cooking’ and wish to make money only when you do. Accordingly, we can guarantee that our own personal fortune will rise and fall in lockstep with your investment in our funds.

The Fund is priced on a monthly basis. The Net Asset Value Unit price is calculated by dividing the NAV by the number of Units on issue (NAV Unit price). The NAV Unit price fluctuates each month as the market value of the Fund’s assets rise or fall. The monthly NAV Unit price reflects the value of the net assets held by the Fund at close of business in each market in which the Fund invests on the last Business Day of the month. As the Fund invests in overseas markets, some of the Fund’s asset values are not available until early the next day in Australia. The NAV Unit price is usually available each month within 8 Business Days of the relevant Unit pricing date.

When you invest in the Fund, we will calculate the Units you receive using an application price. The application price is the NAV Unit price for the month plus the buy spread (an allowance for transaction costs incurred by the Fund on acquisition of assets). When you withdraw your investment in the Fund, the value of your Units will be calculated using a withdrawal price. The withdrawal price is the NAV Unit price for the month less the sell spread (an allowance for transaction costs incurred by the Fund on disposal of assets).

When making your initial investment in the Fund, please complete every section of the Application Form that is relevant to the type of Investor you are. The Application Form includes details of the identification documentation that we are required by law to collect from you before we can issue Units in the Fund to you. Please mail the completed original of the Application Form, together with certified copies of the requested identification documentation, to our Registrar. The Registrar’s postal address details appear on the back of this Booklet and on the Application Form. We will not accept an Application Form for an initial investment by email.

The Fund intends to distribute any distributions on an annual basis in June of each year, however, we have the discretion to pay distributions (if any) more frequently. We currently intend that the Fund will distribute any distributions to Investors within 2 months after 30 June of each year. Application and withdrawal prices fall by the approximate amount of the distribution after each distribution period because the distribution reduces the Fund’s assets. If you invest just before the end of a distribution period, you may find you have some of your capital returned to you as income.

You may elect to have your distributions from the Fund: Reinvested for further Units in the Fund; or Paid to you to your nominated bank account. If you do not make an election on the Application Form as to how you would like to deal with your distribution, you will be deemed to have made an election to have all distributions reinvested for further Units. Any change to distribution instructions should be advised to us at least 10 Business Days before the end of the relevant distribution period. Note: Units issued for reinvested distributions will be priced using the post distribution NAV Unit price.

We will accept withdrawal requests via mail only. Instructions to withdraw should be signed by the nominated authorised signatory or signatories. Under some circumstances, we may need to contact you to request further documentation to confirm the validity of your instruction. This may delay processing of the withdrawal request. We can only pay redemption proceeds to an Australian bank account held in the name of the Investor, or by an Australian dollar cheque made payable to the Investor. We are unable to pay redemption proceeds to a third party bank account. Normally we will pay redemption proceeds to the bank account you nominated on your Application Form when you initially invested in the Fund, or if you have subsequently written to us to change your nominated account, we will pay proceeds to that account. We will send you a confirmation of your redemption once it has been processed and paid. The confirmation will include details of the bank account to which the proceeds have been paid.

One month notice must be given for redemptions. Ordinarily, redemption requests will be processed and the redemption will occur at the start of themonth that follows the month in which the request is received.

We believe that issues relating to labour standards, and to environmental, social and ethical considerations have the potential to affect the business outcomes of the Fund’s investment companies. Accordingly, we review labour standards, and environmental, social and ethical considerations as part of the risk assessment that is completed when we determine the investment grade of a company. However we are not considered an ethical fund as per ASIC regulations.

Investing in managed funds has tax implications which are particular to your circumstances. This means that it is important that you seek professional taxation advice that takes account of your particular circumstances before you invest or deal with your investment. This information should serve only as a guide to the tax considerations that may arise. The information only applies to Australian resident Investors. Different tax considerations arise for non-resident Investors. It is important that investors seek professional taxation advice that takes account of your particular circumstances or personal objectives before you invest or deal with your investment.

Australian residents who invest in the Fund are generally subject to capital gains tax on realised net capital gains when they redeem units from the Fund. Individuals, trusts and complying superannuation entities may obtain partial capital gains tax discounts in relation to the disposal of units and the capital gains portion of distributions.