Australian Equities
Australia All Cap

January 2025 | Investor Update
We provide this monthly report to you following conclusion of the month of January 2025.
The TAMIM All Cap Fund was up +3.38% (net of fees) during the month, versus the Small Ords up +4.59% and the ASX300 up +4.46%.
Stocks performed well during the month driven by optimism from the Trump inauguration and the pro business policies of this incoming administration. In Australia, consumer optimism is improving but still below historical norms, yet most economists are forecasting rate cuts in February or March. We view any rate cut as very positive for local equity markets and especially small/mid caps.
With US markets finishing the month well, Bulls have reason to smile – historically, when the S&P500 index rises more than +2% in January, it’s a good omen. Since 1951, such starts have led to average annual returns of 18.4%, with positive years being 88% of the time. Let’s hope this trend continues.
So the question remains are markets overvalued? In the case of the US market and valuations, there’s no doubt the 10 largest stocks PE ratio is high. Looking back at the internet boom during the dot com bubble, and similar to that the 10 largest stocks then had a high PE ratio although today these stocks have much higher earnings than those in the earlier boom, given their market weight is much higher now.
Another significant difference today is that the remainder of the market, the other 490 stocks in the S&P500, the PE ratio is not very high, and in fact trading below the long term average of the market. Looking back at the dot com boom whereas the PE was high for the broader market and not just the 10 largest stocks.
And this is also the case globally, with other markets not having high PE ratios currently, arguably in part because they don’t have the same world leading tech stocks as the US. This is in stark contrast to the dot com bubble whereas global stocks had high PE ratios during the internet boom.
So, to summarise it seems to us that over valuations are more confined this time around to a handful of stocks in a specific sector, and any correction in these stocks, might not affect global markets as broadly as in the past.
Finally, we provide a brief commentary on portfolio updates during the month in the portfolio section of the report. We look forward to providing further updates in our next monthly report in March following the February results season.
Sincerely yours,
Ron Shamgar and the TAMIM Team.
Fund Performance
Portfolio Highlights

We have written many times last 3 years about DSE and why we like the business ticking most of the boxes we look for in a company:
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- Founder led with skin in the game
- Strong growth and profitability
- Net cash balance sheet
- Industry disrupter
- Undemanding valuation
We first bought DSE in the low $2s mark around 3 years ago, we are very happy with the outcome for holders and expect this takeover to be one of many more to come this year.

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- Active Customers up 8.5% YOY to 317,995 with Active Customers growing further to 322,219 at 25 January 2025.
- ARPU up 6.4% YOY to $75.68 Driven by changing product mix to higher revenue products.
- Strong growth in Funds Under Management (FUM) of $1.61bn up 32.4% YOY
(QOQ: +6.3%), driven by strong growth in netflows of $183m in Calendar Year 2024
(CY23: $57m) and positive investment markets. FUM increased to $1.67bn at 25 January 2025. - Raiz Super Moderately Aggressive Option rated #1 by SuperRating
- Continued product innovation with Raiz Jars finalised for launch in January 2025 and Winner of Finder Awards 2024 for Investment Innovation
- Strong cash position with Positive quarterly operating cash flow of $700k and $12m net cash balance.
RZI reminds us of Dropsuite (DSE) having a fragmented client base with small ARPU and a simple business to model, founder led, growing sticky and profitable revenue, strong balance sheet and a reasonable valuation. RZI is also a market leader for the provision of investment solutions for a younger demographic with low value balances that are not being catered for by the traditional advice market.
More importantly RZI is not FUM reliant but rather a subscription business with $24m of ARR and circa $4m of Ebitda this year. The sector has seen a flurry of M&A recently with Spaceship being taken over at a valuation well in excess of RZI, whilst listed peers Selfwealth (SWF) and Insignia (IFL) are each in the midst of a three way takeover battle.
We believe RZI is next and a perfect target for a global wealth management firm, Large big four bank, or an investment platform. Our near term valuation is $1.00+.

Total funds under administration (FUA) of $62.1 bn (31 December 2023: $48.3 bn, up 29%). PPS’s next generation IDPS Spectrum achieved quarterly gross and net inflows of $69m , almost wholly in the month of December 2024, contributing FUA of $72m for the quarter.
Platform $30.2 bn (31 December 2023: $22.9 bn, up 32%
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- Spectrum $72m
- Separately Managed Accounts (SMA) $12.5 bn (31 December 2023: $10.3 bn, up 20%)
- Powerwrap $13.5 bn (31 December 2023 $12.5 bn, up 8%)
- OneVue $4.2 bn ($4.1 bn at 15 April 2024 acquisition)
Quarterly net inflows of $371m (quarter to 30 September 2024: $139m)
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- Spectrum net inflows of $69m
- SMA net inflows $261m (quarter to 30 September 2024: $165m)
- Powerwrap net inflows $78m (quarter to 30 September 2024: net outflow $60m)
- OneVue net outflows $37m (quarter to 30 September 2024: net inflow $34m)
PPS share price has more than doubled since we took a position last year. We took the opportunity to take profits in the stock as the share price reached our short term valuation target. We maintain a smaller position heading into the February results period where we will reassess our position.
Fund Facts
Investment Parameters
Management Style: | Active |
Reference Index: | ASX 300 |
Number of Securities: | 20-50 |
Single Security Limit: | 10% (typically 5%) |
Investable Universe: | ASX (focus on ASX300 ex20) |
Market Capitalisation: | Any |
Leverage: | No |
Portfolio Turnover: | < 25% p.a. |
Cash Level: | 0% - 100% (typically 5 - 30%) |
Fund Profile
Investment Structure: | Unlisted Unit Trust (available to wholesale investors) |
Minimum Investment: | $100,000 |
Management Fee: | 1.25% p.a. |
Admin & Expense Recovery: | Up to 0.35% |
Performance Fee: | 20% of performance in excess of hurdle |
Hurdle: | Greater of RBA Cash Rate + 2.5% or 4% |
Entry/Exit Fee: | Nil |
Buy/Sell Spread: | +0.25% / -0.25% |
Applications: | Monthly |
Redemptions: | Monthly with 30 days notice |
Investment Horizon: | 3 - 5 years + |
Distributions: | Annual |
