Growing Your Wealth
At Compounder Fund, we want you to have an Owner’s Manual. The Owner’s Manual is designed to tell you exactly what we want to achieve for Compounder Fund. Most importantly, it also spells out how we intend to achieve our goals. We need you to fully understand the what and how of the things we’re trying to accomplish. The success of an investment fund depends on whether the fund manager can form a true partnership, based on mutual understanding, with the fund’s investors. Compounder Fund needs your help to do great things for you.
The 4 Pillars Of Compounder Fund
An Investment Solution For All Investors
We aim to help you generate superior returns through a long-term investing approach in the stock market. Recession or not, COVID-19 or not, our approach will not change. That means buying great businesses and holding them for many, many years.
Provide Quality Investor-Education
We intend to run Compounder Fund transparently. Through the actions and the return of Compounder Fund, we want to educate the public about sound investing.
Charge Fair Fees That Benefit Investors
Compounder Fund is designed to have fees that drop as its assets under management (AUM) grows. This gives us an opportunity to share the spoils with you. Hopefully, we can be a positive change in the financial services industry – and we’ll be happy if you can join us on this journey!
Give Back To Society
We will give at least 10% of our personal profits from Compounder Fund each year to charities of our choice. The giving will be audited.
How We Invest
Compounder Fund’s goal is to deliver superior long-term returns for you through investing in the stock market. But we’re not investing in just any stock. We will invest the lion’s share of Compounder Fund’s capital in the shares of companies that we call Compounders – hence the name Compounder Fund! Compounders are companies that can compound shareholders’ value over the long run at high rates. In our view, Compounders are companies that excel against our six-criteria investment framework:
- Revenues that are small in relation to a large and/or growing market, or revenues that are large in a fast-growing market
- Strong balance sheets with minimal or reasonable levels of debt
- Management teams with integrity, capability, and an innovative mindset
- Revenue streams that are recurring in nature, either through contracts or customer-behaviour
- A proven ability to grow
- A high likelihood of generating a strong and growing stream of free cash flow in the future
How We Invest
Compounder Fund’s goal is to deliver superior long-term returns for you through investing in the stock market. But we’re not investing in just any stock. We will invest the lion’s share of Compounder Fund’s capital in the shares of companies that we call Compounders – hence the name Compounder Fund! Compounders are companies that can compound shareholders’ value over the long run at high rates. In our view, Compounders are companies that excel against our six-criteria investment framework:
- Revenues that are small in relation to a large and/or growing market, or revenues that are large in a fast-growing market
- Strong balance sheets with minimal or reasonable levels of debt
- Management teams with integrity, capability, and an innovative mindset
- Revenue streams that are recurring in nature, either through contracts or customer-behaviour
- A proven ability to grow
- A high likelihood of generating a strong and growing stream of free cash flow in the future
Why Invest In Compounder Fund?
Your Gain Is Our Gain
Compounder Fund is designed to work for you. This means we put your interests first – having fees that fall as our assets under management grows, and earning our keep mostly through generating outstanding returns for our investors.
We charge the following fees at launch:
- A management fee of 1% of assets under management (AUM). This is to cover the overheads of a young fund. This management fee will drop as Compounder Fund’s assets under management (AUM) grows. The costs of running a fund often don’t increase as fast as the fees that are earned. This gives Compounder Fund an opportunity to share the spoils with you.
- A performance fee which is 10% of the excess returns over a 6% compounded hurdle, with a high watermark. Essentially, we will earn a performance fee only if Compounder Fund’s investors earn an annualised return of at least 6% over the long run. In other words, the only way for us to get paid a performance fee is to work harder for you!
We explain our fee structure in detail in here and in the Owner’s Manual.
12% Annual Return
Our goal is to deliver an annual return of 12% or more over the long-term (a 5 to 7 year period, or longer), net of all fees.
That said, we cannot guarantee you any returns. In fact, no investor – not even the top investors in the world – can realistically guarantee you a return. If anyone guarantees a return, we suggest you take your money and run far, far away!
The stock market is volatile. And if the market falls, we fully expect your investment in Compounder Fund to decline by a similar magnitude or more. But we believe that in the long-term, your patience will be well-rewarded.
A Long-Term Focus on Investing
We approach the stock market with the mindset of a patient, long-term focused investor. Many market participants have a fixation over the short-term, which can cause great volatility in stock prices. This creates massive price-value mismatches in even the largest companies in the world for patient investors to exploit. We are patient investors. The Owner’s Manual gives you an understanding of Compounder Fund’s long-term investing approach, and this understanding will be a key contributor to your and Compounder Fund’s future investing success.
Compounder Fund’s Team
CHONG Ser Jing
Co-Founder, Portfolio Manager
sj.chong@galileeinvestment.com
Jeremy CHIA
Co-Founder, Investor Relations Head & Investment Analyst
jeremy.chia@galileeinvestment.com
David KUO
Advisor to Compounder Fund
Contact Us
It’s our dream to help all investors! After all, good investing should be for everyone. That said, from a regulatory standpoint, Compounder Fund can only accept accredited investors for now. That means we’re only looking for individuals who meet any of the following criteria:
- Have net assets of at least S$2 million, of which only S$1 million can come from the primary residence
- Have an annual income of at least S$300,000
- Have net financial assets of at least S$1 million
But to maximise your chances of success with the fund, we’re also looking for someone who:
- Believes in the stock market’s ability to create long-term wealth
- Can handle stock market volatility (declines of 50% are not uncommon) in a calm manner
- Can invest for at least five years
- Understands that with patience, the stock market can build wealth for you
- Believes that a company’s business performance over the long run governs its stock price movement
- Believes in our mission of “Growing Your Wealth And Enriching Society”
We realise that by doing this, we might lose a lot of potential prospects… but that’s OK. We’re looking for people who are aligned with our investment philosophy and Compounder Fund’s mission. We want people who are patient enough to wait for their stocks to generate returns.
If you think you’re a good fit with Compounder Fund – awesome! We look forward to speaking to you. Of course, there are no-obligations on your end. You don’t have to make any decision during our conversation. You can say “No” to us anytime you want.
This will purely be a discussion to see if working together is the right path for us in the long-term. We will also be happy to answer any questions you may have! So fill out the form below to schedule an appointment today.
Anyway, the choice is yours – even if we don’t end up working together, no sweat, we can still be friends 🙂
Talk to us now
