The Australian Companies Fund aims to create long term wealth through a handpicked portfolio of 15-25 companies, most based in Australia, we believe are trading at prices different to their intrinsic values.
The Fund’s objective is to provide long term capital growth and outperform the greater of the S&P/ASX 200 Accumulation Index or the RBA cash rate over rolling seven year periods. The Fund is not intended to replicate the index, investing in a concentrated portfolio of predominantly undervalued Australian equities, with the added attraction of some exposure to PM Capital’s global best ideas.
The Fund uncovers and profits from market anomalies in Australia, but also applies global market anomalies to the Australian market.
Fundamental, bottom-up, research-intensive approach
As a guide, 15-25 listed businesses.
7 years plus
The Fund may be appropriate for investors seeking capital appreciation over a seven plus year investment horizon.
The Fund may be suitable if you want:
Provided by a demonstrated, focused, patient and considered process honed over 30 years - with some short term volatility
To a unique portfolio of Australian equities with additional global exposure, powered by domestic and international market insights
A long term approach
Comfortable with investing in the Fund over the long term (7 years plus) with some short term volatility
The Fund provides opportunities in the Australian market significantly different to those provided by the index and more traditional Australian equity funds.
Meet the Manager
The Fund’s process has been shown to be effective, based on a philosophy developed by Paul Moore, over 30 years. This has produced attractive long term capital growth.
The concentration of the Australian equities market means many managers cannot significant value. We have an authentic investment process where our exposure to industry sectors or market capitalisation is determined solely by our conviction in the risk/ reward opportunities that we identify within portfolio guidelines. No conviction = no investment.
Opportunistic, concentrated and contrarian
The Fund aims to create long term wealth for our co-investors by finding and exploiting investment anomalies, wherever they are. We find opportunities where others may only see risks so we will produce different outcomes to both the benchmark and traditional Australian equity funds. This may help diversify your current Australian equities investments, decreasing overall risk.
The portfolio is concentrated, typically 15-25 stock-specific ideas in which we have the strongest conviction.
Global expertise and value add
The Fund can invest up to 20% of its value in PM Capital’s best international stock ideas. In the highly concentrated Australian market this can give you mostly Australian market exposure but with a greater opportunity to invest in companies globally which, determined by PM Capital’s proven investment process, have better outlooks for future gains.
Through this portfolio construction method the Fund directly benefits from PM Capital’s global investment research that underlies the award winning PM Capital Global Companies Fund. This works in two ways – the Fund can invest in international opportunities identified by the investment team. The Portfolio Manager can also take the market anomalies found globally and use the insights to identify opportunities in the Australian market.
Our co-investors receive access to a unique subset of opportunities to which they would otherwise find difficult to access. The management team have significant investments in the Fund – they invest for and with you.