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Paradice Australian Mid Cap Fund - Class B

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100031-2023-08-12-02:38.pdf
FUND MANAGER Paradice Investment Management
ASX Code
APIR ETL8772AU
ASSET CLASS AUSTRALIAN EQUITIES
INVESTMENT STYLE The Fund invests in companies listed outside of the S&P/ASX 50 with a market cap lower limit of $400m.
INVESTMENT PROFILE The Fund aims to outperform its Benchmark over a three-to-five year period (after management fees and before tax).
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 25-09-2007
BENCHMARK A composite benchmark of 70% of the S&P/ASX Mid Cap 50 Total Return Index and 30% of the S&P/ASX Small Ordinaries Total Return Index
FUND SIZE A composite benchmark of 70% of the S&P/ASX Mid Cap 50 Total Return Index and 30% of the S&P/ASX Small Ordinaries Total Return Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS 30-80
FEES 1.10% p.a. of the NAV of the Fund (before performance fees)
STRUCTURE

Benefits

Benefits

Benefits of investing in the Paradice Australian Mid Cap Fund

The Investment Manager believes that there is opportunity to find value no matter where we are in the economic cycle. By building a diversified portfolio of investments that exhibit four key characteristics (undervaluation, business quality, strong financial metrics and shareholder-friendly boards) the Fund aims to generate strong, long term risk-adjusted returns.

Other significant benefits of investing in the Fund may include:

  • access to Paradice's investment expertise;
  • active risk management (through the form of risk spreading);
  • access to investment opportunities that individual investors often cannot achieve;
  • managed funds can often invest for less cost than ordinary investors can achieve individually;
  • generally, you can add to or withdraw your investment daily;
  • you have the right to receive any distributions we make from the Fund (usually semi-annually). Distributions may also carry tax credits;
  • you can also receive capital gains (or suffer losses) when you dispose of your investment such as by exiting the Fund or selling your units; and
  • a robust compliance and governance structure with a trusted responsible entity and legal rights under the Constitution of the Fund.

Risk level

High

Investor suitability

The Fund is primarily designed for investors seeking superior medium to long term capital growth from exposure to a diversified portfolio of quality companies. Investors need to be comfortable with the short term fluctuations inherent in equity investments.
RISK LEVEL High
INVESTOR SUITABILITY

The Fund is primarily designed for investors seeking superior
medium to long term capital growth from exposure to a diversified
portfolio of quality companies. Investors need to be comfortable
with the short term fluctuations inherent in equity investments.

Risks

Title
Detail

Key Features

About the Fund

The Paradice Australian Mid Cap strategy was established in September 2007 by portfolio manager/analysts Matthew Riordan and John Lake. In February 2018 James McBeath joined the team as portfolio manager/analyst. 

The Fund typically invests in 50-70 companies listed outside of the S&P/ASX 50 with a market cap lower limit of $400m, providing investors with an exposure to a diversified portfolio of emerging Australian businesses.

Investment style

The Fund employs a long term 'bottom-up' approach to investment.

Paradice believes equity markets are often inefficient due to investor emotion, short-term thinking and too much reliance on a single aspect of a company's financial health - it's profit and loss statement. Our key focus is on management, current and future cash flows and the quality of the balance sheet.

Paradice's expertise lies in evaluating a company's market position taking into account all factors from balance sheet, macroeconomic drivers through an extensive visitation program.

Mandate

How we invest your money

Investment approach

Paradice aims to buy shares which it believes are underpriced and expects to grow at rates greater than the market. Paradice's strategy is to favour well-managed, good value companies that have significant growth opportunities through their comparative advantage. This comparative advantage can be via a combination of a better product or service, a more efficient organisational model, a favourable niche or a commanding leadership position within their industry. Paradice believes a good business requires good products and services and good execution.

The key to identifying these investment opportunities lies in Paradice's extensive insight and analysis of companies and the industries to which they belong. This is achieved through an intense company visitation program and its experienced investment professionals using proven valuation techniques and models.

Asset allocation and investment restrictions

To achieve the investment objective, the Fund will invest in Australian and New Zealand mid capitalisation companies. Investment is generally restricted to companies or unit trusts/schemes listed on the ASX but outside the ASX Top 50 companies as determined by the ASX with a market capitalisation exceeding $400m and to equivalent stocks listed on the New Zealand Stock Exchange at the time of the initial investment. There is some discretion to remain invested in stocks that move into the ASX Top 50 for a period of time and to invest in stocks soon to move out of the ASX Top 50.

Asset ranges

  • Australian & New Zealand equities: 90%-100%
  • Cash: 0%-10%