PM Capital Global Companies Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100606-2022-09-22-02:40.pdf
ASX Code
INVESTMENT STYLE The Fund aims to create long term wealth through a concentrated portfolio of global companies.

The Fund’s investment objective is to provide long term capital growth and outperform the greater of the MSCI World Net Total Return Index (AUD) or RBA cash rate over rolling seven year periods.

BENCHMARK MSCI World Net Total Return Index (AUD)
FUND SIZE MSCI World Net Total Return Index (AUD)
FEES 1.09% p.a.



Benefits of investing in the PM Capital Global Companies Fund

  • Capital growth: Provided by a demonstrated, focused, patient and considered process.
  • Access to global securities: Increase your exposure to global equities, either within your portfolio or SMSF.
  • A long term approach: The recommended investment time is seven years plus, reflecting
  • our long term approach.
  • Diversity: The potential for returns that may be significantly different to those provided by the index and more traditional global equity funds.

Risk level

Very High

Investor suitability

The Fund may be appropriate for investors seeking capital appreciation over a seven plus year investment horizon.

RISK LEVEL High to Very High

The Fund may be suitable for investors who seek to:
• access a leading boutique investment manager with a track record of strong investment returns in global equities (including Australian) investments; 
• diversify their existing portfolio through exposure to a concentrated portfolio where each position has been subject to intensive research and an internal peer group review;
• invest in a high conviction portfolio seeking to deploy long term capital in securities considered to be undervalued; 
• earn potential returns from an investment strategy that focuses on an assessment of a company’s long-term value, regardless of its benchmark weighting; and
• take advantage of new investment opportunities through exposure to quality businesses across a range of industrie



Key Features

About the Fund

The Global Companies Fund aims to create long term wealth through a concentrated portfolio of 25-45 global companies that we believe are trading at prices different to their intrinsic values. 

Investment objective

The Fund's investment objective is to provide long term capital growth and outperform the greater of the MSCI World Net Total Return Index (AUD) or 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 equities and other global (including Australia) investment securities.

Investment philosophy

We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world. Using a focused, patient and considered approach to finding simple investment ideas produces the best environment for creating that long term wealth.

Our experience has shown us that while the market is largely efficient, it can, and regularly does, misprice a small proportion of companies. This mispricing can arise as a result of any number of reasons, but is most often associated with disruptive or cyclical change, new information which is misunderstood by the market as having a permanent impact when it is in fact transitory, or just because they are operating in a sector out of favour with investors.

Our unique process is based on scanning the world for those companies (hence the radar in our logo), discovering the associated valuation anomalies and extracting value from them. We buy good businesses at a good price; businesses that we believe are being valued differently to their long term intrinsic value, but will return to their correct value over time.


How we invest your money

The Fund is a concentrated portfolio, with its listed equity component typically comprising 25 to 45 securities, when fully invested, across global equity markets.

The allowable assets include (but are not limited to)listed and unlisted global securities and other instruments, interest bearing debt securities, managed investment schemes, derivatives (both exchange traded and over the counter (OTC) - for example swaps, options, futures, forwards, credit derivatives/credit default swaps, etc), deposit products and cash.

Investment guidelines

  • Individual security positions will be reduced if they exceed 10% of the Fund's Net Asset Value;
  • Individual direct short positions (excluding index shorts) may be initially sold up to a limit of 2% of Net Asset Value, and will be reduced if the position exceeds 3%. The Fund may have a maximum total of 30% in direct shorts (being shorts that are not paired against a long position);
  • The Fund may hold up to 30% of its Net Asset Value in interest bearing debt securities (with a maturity greater than 12 months) and corporate loans, and if appropriate, may hold up to 100% in cash or cash equivalent investments. The loans may generally be tradeable over the counter;
  • Derivatives (exchange traded and/or OTC) may be used for hedging, to reduce or increase the effective invested position, or to create new positions;
  • The maximum gross leverage of the Fund (being longs + shorts + debt securities) is 170%, and the maximum net leverage of the Fund (being longs - shorts + debt securities) = 130%;
  • The maximum net equity exposure (including to equity indices) is 110%; defined as long equity minus short equity, and is calculated on a net effective, option adjusted basis;
  • The Fund may purchase up to 10% of its Net Asset Value in Australian unlisted managed investment schemes (MIS) and/ or global equivalents. These other MIS may be issued by PM Capital or a third-party issuer;
  • There are no restrictions regarding geographical or currency exposure. The Fund may be fully exposed (long or short) to any one or more of the currencies of the various global domiciles in which the Fund may invest.

Asset allocation ranges

  • International listed equities and/or Australian listed equities (including equity indices): 0-170% (gross) 0-110% (net)
  • International government bonds / Australian government bonds: 0-30%
  • International corporate bonds Australian corporate bonds (including tradeable loan securities): 0-30%
  • Exchange-traded derivatives: 0-100%
  • Over-the-counter (OTC) derivatives: 0-100%
  • Other - International/Australia (including unlisted unit trusts (MIS) and other instruments): 0-10%
  • Cash, term deposits, and cash equivalent investments: 0-100%