MFF Capital Investments
About this Fund
|FUND MANAGER||Magellan Asset Management|
|ASSET CLASS||LISTED INVESTMENT COMPANY|
|INVESTMENT STYLE||MFF invests in stock exchange listed international and Australian companies.|
|INVESTMENT PROFILE||MFF aims to maximise compound risk adjusted after-tax returns for Shareholders while minimising the risk of permanent capital loss.|
|CURRENCY MANAGEMENT||Active management|
|NO. OF HOLDINGS||20+|
About the Fund
MFF Capital Investments Limited (ASX Code: MFF) offers investors the opportunity to invest in an ASX-listed investment company which holds a minimum of 20 stock exchange listed international and Australian companies. MFF aims for a portfolio focussed upon companies with attractive business characteristics ("Quality) at discounts to their intrinsic values ("Value).
MFF has had two broad investment objectives for its investment portfolio:
How we invest your money
MFF's historic investment objectives have been underpinned by the investment philosophy outlined below. These comments which date from MFF's inception are general in nature, and are subject to changes in portfolio, polices and markets over time.
Identifying quality companies in attractive industries
The assessment of companies and the industries in which they operate focusses primarily on considerations such as the sustainability of any competitive advantages, whether the company earns high returns on invested capital, whether it is likely that the company can continue to deploy capital at high rates of return, the assessed inherent business and financial risk of the company, whether the company has scale advantages, the impact of technology on the company, whether the company will be a beneficiary from globalisation and whether the company's management is assessed to be honest and capable and focussed on long-term shareholder value. While MFF may invest in companies operating in any industry or industry segment, the focus will be on the following industries or industry segments: banks and general financials; food and beverage producers; retailers; personal and household goods; support services; ports, toll roads and vital infrastructure; and monopoly and duopoly systems.
Assessing value against price
MFF will seek to focus upon outstanding listed international and Australian companies at prices which are considered to be below the intrinsic value of those companies. Investing internationally and in Australia.
MFF will seek to invest internationally as well as in Australia. MFF believes that it is desirable to invest internationally as Australian equities comprise only approximately 2% of total world market capitalisation and the Australian market, therefore, necessarily offers investors limited opportunities for diversification. The focus will be on investment opportunities in countries with a well-established rule of law and regulatory oversight.
Preserving capital and minimising risk of loss
MFF believes that it is sensible to seek to minimise the risk of permanent capital loss and the establishment of prudent investment parameters is intended to assist in mitigating this risk. MFF considers that risk is reduced by investing in outstanding companies at prices below their assessed intrinsic value. Market conditions from time to time make this extremely challenging. It also usually also conflicts with return maximisation.
MFF will seek to have a rational selling discipline and assess whether to sell investments in the investment portfolio where it believes that:
MFF is subject to additional investment limitations which may change from time to time, as determined by the Directors. These limitations include: