Institutions

Apostle Global Small-Mid Cap Fund

Investment Objective

The Apostle Global Small-Mid Cap Fund’s investment objective is to deliver long term capital appreciation through investment in global small to mid cap equities using two regional portfolio management teams. Both teams target a 50% cumulative return over a three year period (15% compound annually), and will seek to outperform the S&P Developed Ex-Australia Between USD2 Billion and USD10 Billion Index (AUD, Unhedged).

Primary Investments

Up to 100% of the Fund invested in a diversified basket of actively managed global equities within the small to mid capitalisation ranges. A targeted maximum of 5% of the portfolio can be allocated to cash.

Style

Bottom up, Valuation Driven, Concentrated.

Investment Philosophy

The Investment Managers seek to identify and capitalise on the long-term investment opportunities evident with small to mid capitalisation global equities. The strategy is focused on identifying undervalued small and mid cap equities which traditionally receive less research coverage than larger companies, thereby creating significant opportunities for active, skilled managers to create value and outperformance.

Process

The Portfolios will be managed with a target return philosophy by the investment managers, who have comparable investment styles, and specialise in the regional markets in which they are managing their portfolio exposure. Both managers are bottom-up, fundamental, research orientated firms. This approach takes advantage of the managers’ in-depth research capabilities in each region.

The Portfolios actively move between small and mid cap companies taking advantage, from time to time, of relative under or overpricing in each sector. This enables the Investment Managers to maximise the opportunity set and avoid over priced markets. It is a focussed portfolio containing between 80 and 160 stocks.

Portfolio Fit

Global Equity portfolios generally focus on investments in large cap companies leaving opportunities in small and mid cap stocks inadvertently overlooked. The small/mid cap area represents 25% of the market and, therefore, benefits most from dedicated research providing opportunities to add value to portfolios.

The Apostle Global Small-Mid Cap Fund would, therefore, complement a broad global equity portfolio.

Currency

Unhedged.

Management Fees

Available upon request.

Vehicle

Fully distributing wholesale Australian Registered Managed Investment Scheme. The Fund has daily valuations, and applications and redemptions can generally be accepted daily. Apostle Asset Management Limited acts as Responsible Entity.