Investment strategy

Investment objective

To provide attractive risk-adjusted returns over the long term by investing in a portfolio of high quality global listed equities.

Investment strategy

The Investment Manager will initially target a concentrated portfolio of 20-40 global listed securities which are considered to be undervalued and exhibit some or all of the following characteristics:

  • quality management and good corporate governance standards;
  • sound business model;
  • solid financial position; and
  • sufficient growth to justify a premium over the current price in the future.

The portfolio will be overweight countries and sectors which the investment team believes offer greater potential for higher risk-adjusted returns. The investment team will actively manage the risk profile of the Fund to provide unitholders with an appropriate level of downside protection and upside gain as broader investor sentiment in the market fluctuates. The Investment Manager will target stocks that satisfy our rigorous standards of corporate governance, liquidity, risk management, and valuation. The investments will be selected on a basis of providing excess return to investors compared to risk, taking into account the effect of correlation with the remainder of the portfolio. The risk and return of the entire portfolio is taken into account when selecting individual investments.

The Investment Manager will target the following portfolio construction parameters (represented as a proportion of the gross value of the Fund, where applicable):

  • No region or sector restrictions;
  • 20-40 securities;
  • 0%-10% cash;
  • At time of purchase, or addition to holdings, a maximum weighting of 15% in any security;
  • Minimum market capitalisation of companies: $5 billion.

It is not presently intended that the Fund will hedge against currency risk, and as such performance of the Fund will be impacted by currency fluctuations.