Sandon Capital Investments
About this Fund
|FUND MANAGER||Sandon Capital|
|ASSET CLASS||LISTED INVESTMENT COMPANY|
|INVESTMENT STYLE||SNC will invest in listed securities that exhibit value characteristics and whose prices may benefit from 'activist' engagement.|
|INVESTMENT PROFILE||SNC seeks to generate positive returns over the medium to long term.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||1 month Bank Bill Swap Reference Rate|
|FUND SIZE||1 month Bank Bill Swap Reference Rate|
|NO. OF HOLDINGS||20-25|
Benefits of investing in SNC
SNC aims to deliver the following benefits:
About the Fund
Sandon Capital Investments Limited (SNC) will seek to invest in Securities the Sandon Capital Pty Ltd (the Manager) considers to be under-valued and where the Manager considers there to be opportunity to encourage changes to unlock what the Manager has identified as intrinsic value.
SNC and the Manager view activism as a critical, and an often missing, tool of value investing.
Activism, as conceived by the Manager, is the process of investing in entities whose Securities the Manager considers to be under-valued and where the Manager considers there to be opportunity to encourage changes to unlock what the Manager has identified as intrinsic value.
The Company may take advantage of "activist opportunities that arise from the actions of others (if the Manager considers these actions may lead to beneficial outcomes). The Manager may also invest, from time to time, in market-based investment opportunities, such as placements, merger arbitrage and other investments it considers appropriate.
Strategies the Manager may advocate include changes to capital structures or dividends policies, changes in corporate strategy, changes to board and management personnel and changes through corporate activities, such as takeovers or divestitures. The Manager will also consider investing in entities that are already the subject of activist strategies initiated by other parties.
Activism does not involve exercising day to day control over the entities that form part of the Portfolio. Activism describes the exercise of the rights afforded to investors, including, where applicable, convening meetings of members, voting at meetings and otherwise seeking to influence change. See Section 2.3 of the Prospectus for a detailed discussion of "activism and Sections 2.4 to 2.6 of the Prospectus for how the Company may take advantage of these opportunities.
How we invest your money
The Company, through the Manager, aims to build a concentrated portfolio of investments that can be acquired below the Manager's assessment of intrinsic value. The Manager and the Company believe the key to successful activist investing is to exert influence over an entity which is proportionately greater than the Company's economic investment but without seeking to exercise day to day control. This may be done through the solicitation of support from management or other investors.
The Company will invest in opportunities that are identified by the Manager:
(a) as trading below what the Manager considers to be their intrinsic values; and
(b) that offer the potential of being positively influenced by the Manager taking an active role in proposing changes in the areas of corporate governance, capital management, strategic and operational issues, management arrangements and other related activities.
The Manager is permitted by the Management Agreement with the Company to acquire interests in a broad range of investments including (without limitation) ASX listed Securities, unlisted Securities (including interests in managed investment schemes), bills of exchange and other negotiable investments, interests in cash management trusts and other types of Securities and debt instruments (whether issued in Australia or in a foreign jurisdiction). See Section 8.1 of the Prospectus for a full list of the Permitted Investments.
Investment Strategies and Process
The following investment guidelines apply to the Manager's implementation of the Company's investment strategy: