Benefits of investing in the Antipodes Asia Fund

The significant benefits of investing in the Fund include:

Access to investment opportunities

A pooled investment allowing access to a diverse range of global companies that would not normally be accessible to individual retail investors.

Professional management

Antipodes' well-resourced and experienced team manages the Fund using a disciplined investment approach aimed at delivering attractive long-term returns.

Alignment of interests

Antipodes is majority owned by its investment team with a performance culture underpinned by sensible incentives, a concentrated strategy offering and the outsourcing of non-investment functions to maximise long-term alignment with investors in the Fund.

Robust investment process

Application of Antipodes' comprehensive and integrated investment approach and process.

Risk level

High

Investor suitability

The Fund may be suitable for investors with an investment horizon of over five years that seek capital growth and income primarily via exposure to Asian focused stocks and are willing to accept the shorter term fluctuations in price typically associated with such investments.

Description of Fund

The Fund typically invests in a select number of attractively valued companies listed on Asian share markets (usually a minimum of 30 long holdings).

The Fund may also invest in companies that are listed:

• on global share markets and which derive greater than 65% of their revenues from Asia;

• in Japan (permitted to maximum 30% net exposure); and

• in Oceania and non-Asian emerging markets (permitted to maximum 15% net exposure).

Investment philosophy

Antipodes believes that equity investment returns are primarily a function of:

• Economic performance of the business you own and the durability of this performance, that is, business resilience; and

• Price paid or starting valuation.

Antipodes defines investment risk as the risk of permanent loss of capital and/or unforeseen volatility and, in this sense, it believes risk is best controlled by:

1. Ensuring the price paid for a stock includes a margin of safety, that is, represents a discount to intrinsic value; and
   
2. Developing a deep understanding of each stock within the context of the broader portfolio.
   

Business resilience is determined by the degree and sustainability of competitive advantage and value drivers since excess returns will result in new competition, technological disruption, greater regulation and management missteps. Accordingly, in the long-term all businesses succumb to changes in the operating environment as depicted below in the Antipodes Capital Lifecycle Model:

• Cyclical

• Structural

• Socio/macroeconomic

How we invest your money

The Fund typically invests in a select number of attractively valued companies listed on Asian-focused share markets (usually a minimum 30 long holdings). The Fund may use derivatives predominantly to establish short positions in securities or market indices and thus reduce the Fund's net exposure to markets, and to hedge currencies.

Antipodes seeks to take advantage of the market's tendency for irrational extrapolation, identify investments that offer a high margin of safety and build high conviction portfolios with a capital preservation focus.

Whilst the Fund primarily invests in Asian focused equities, the Fund's constitution permits a wide range of investments including but not limited to: cash and deposits; fixed income and debt securities; company securities other than shares (including options, convertible notes, rights and debentures); derivatives - exchange traded and over-the-counter (including options, participatory notes, futures and swaps for equity, fixed income, currency, commodity and credit default exposures); currency contracts; interests in managed investment schemes and collective investment vehicles; unlisted securities and securities that are not traded on a recognised market; bullion, land and other physical commodities.

The Fund may also invest in companies that are listed:

• on global share markets and which derive greater than 65% of their revenues from Asia;

• in Japan (permitted to maximum 30% net exposure); and,

• in Oceania and non-Asian emerging markets (permitted to maximum 15% net exposure).

The Fund will typically have net equity exposure of 50-100%.

Asset allocation

• International equities (inc. equity derivatives): 50% - 100%

• Cash equivalent investments: 0% - 50%