The Fund’s investment mandate has the ability to invest in companies across the market capitalisation spectrum, it is benchmark agnostic and the portfolio of stocks will be concentrated, typically 30-50 stocks. The Fund will be long only and the investment objective is to outperform the MSCI All Country World Total Return Index (net, AUD) with lower volatility over the medium to long term.
The investment team reviews investment opportunities and develops an understanding of the opportunities and outlook for companies using detailed research covering financial statements, company meetings and external research. Opportunities that meet the investment criteria are divided into 3 segments, namely Core, Cyclical or Opportunistic. At all times, the majority of the fund is invested in the Core segment. Core consists of companies exhibiting strong business models with low cyclicality, consistent historical and expected growth, good cash-flow generation and low balance sheet risk.
The portfolio is created from the ideas that work best together, within the portfolio’s risk management guidelines, which include maximum country, industry and portfolio segment exposures.