The Fund invests in an actively managed portfolio of mainly small cap equities listed, or expected to be listed, on the Australian share market.

The Fund aims to earn a return (after fees) which exceeds the Benchmark over rolling five year periods.

Benefits of investing in the Fairview Equity Partners Emerging Companies Fund

Access to small company opportunities

The Fund typically invests in 50-65 equities listed on the Australian share market. While Fairview focuses on small cap equities, it may invest up to 20% of the Fund in mid cap equities.

The Fund offers investors access to investment opportunities, markets and diversity that individual investors usually can't achieve on their own.

Fairview's investment expertise

Fairview's investment team has successfully managed small cap equity funds for many years.

Through its core, active investment approach to stock selection (outlined in section 5 of the PDS), Fairview aims to generate long-term growth from the Fund's portfolio of mainly small cap equities.

Mispricing opportunities may lead to better return outcomes

Small cap equities are more likely to be mispriced by the market, as they are generally less researched by analysts and brokers.

Fairview's investment approach seeks to identify mispricing opportunities to achieve better return outcomes than the S&P/ASX Small Ordinaries Accumulation Index (Benchmark), after fees, over rolling 5 year periods.

Risk Level
Very high

The Fund is actively managed and its returns may be volatile when compared with the Benchmark return and other asset classes such as fixed income. Therefore, the Fund may suit investors who are willing to aim for higher potential returns in exchange for accepting higher risk.

Investor suitability

The Fund may be suited to you if you:

• believe in the greater long-term wealth creation potential of equities;

• want to invest in an actively managed portfolio of Australian small cap companies listed on the Australian share market that is managed by a specialist investment manager;

• want to diversify your Australian equity portfolio to include access to a range of small and emerging companies that show strong long-term growth potential; and

• can tolerate fluctuations of income and the risk of capital loss.

When you invest in the Fairview Equity Partners Emerging Companies Fund, you're not buying an index or a sector, you're harnessing Fairview's commitment to diligently researching and identifying mis-priced companies within the small caps sector.

Fairview portfolio managers are founding members and majority shareholders in Fairview. Each manager has invested a considerable amount of their own personal wealth into the Fund aligning their interests with investors. Fairview seek to maximise unitholder returns.

Why Fairview?

• Returns - our core active investment approach and tight risk controls allow us to consistently deliver solid returns throughout the various stages of each investment cycle.
  
• Capacity - we have firm capacity constraints in place to ensure returns aren't compromised due to excessive levels of funds under management.
  
• Experience - we have worked together for several years and collectively have in excess of 75 years of investment experience, specialising in funds management and investment research.
  
• Diversification - we comprehensively cover the small caps universe to build a diversified high quality portfolio of our most compelling investments opportunities.
  
• Alignment - we have invested a considerable portion of our own personal wealth into the Fund. To this end, we are totally aligned with investors in our efforts to maximize unitholder returns.
  

Investment Philosophy and Style

Fairview's investment philosophy is based on the belief that opportunities for identifying mispriced securities are greatest within the smaller companies segment of the market, primarily because many of these companies tend to be under researched and accordingly have the potential to offer investors significant upside. Fairview is a core active investment manager that employs a disciplined, multi‑faceted strategy for stock selection. This collaborative approach is research driven, combining high levels of company contact, detailed analysis, a robust peer review process and appropriate risk controls.

Investment approach

Fairview's investment philosophy is based on the belief that opportunities for identifying mispriced equities are greatest within the small cap segment of the market. This is primarily because many small cap companies tend to be under-researched and therefore have the potential to offer investors significant upside.

Fairview implements this philosophy through a disciplined, multi-faceted strategy of stock selection.

This collaborative approach is research-driven, combining high levels of company contact, detailed analysis, a robust peer review process and appropriate risk controls.

Fairview's investment process is as follows:

1. Initial stock screens and filters - Initial investment universe comprises more than 1,500 equities. Detailed quantitative and qualitative filters are applied to narrow the investible universe, including an assessment of a company's management, business quality, cashflow and balance sheet strength.
2. Research and modelling - An investment process that revolves around an intensive program of company visits, industry assessment and detailed financial modelling.
3. Investment conviction -  Potential investments are then subjected to a further layer of review through which Fairview tests the strength of a company's investment case.
4. Peer review - The peer review process seeks to fully utilise the extensive experience of the investment team. Ongoing peer review ensures that the investment case for existing portfolio positions remains valid and any behavioural biases of investment team members are kept in balance.
5. Portfolio construction and risk control - Risk controls are in place to ensure the Fund is adequately diversified, with sector and style biases controlled. The Fund is diversified by selecting the highest conviction stocks from groupings of companies based on investment styles, industry sectors and risk/return profiles. Maximum active position size is 5% of the Fund and the typical number of equities is approximately 50-65. This ensures adequate diversity and a broad number of equities contributing to performance. The Fund may also invest in equities that Fairview expects to be included in the Benchmark.

How we invest your money

Indicative asset allocation ranges (Asset: Range)

• Australian equities: 90%-100%

• Cash and cash equivalents: 0-10%