Benefits of investing in the Antipodes Global Fund - Long (Class I)

The significant benefits of investing in the Fund include:

Access to investment opportunities

Investing in the Fund means that your money is pooled with that of other investors. This provides the Fund with the investment buying power not often available to you as an individual investor with smaller amounts to invest. This means you can gain access to a diverse range of companies from around the world that would not normally be accessible to individual retail investors.

Professional management

Antipodes' well-resourced and experienced team manages the Fund using a disciplined investment approach aimed at delivering attractive long-term returns.

Alignment of interests

Antipodes is majority owned by its investment team with a performance culture underpinned by sensible incentives, a concentrated strategy offering and the outsourcing of non-investment functions to maximise long-term alignment with investors in the Fund.

Robust investment process

Application of Antipodes' comprehensive and integrated investment approach and process.

Risk level

High

Investor suitability

The Fund is willing to take high risk in search of greater returns, and investors are comfortable with volatility and with the high risk of negative returns, with the potential to produce higher returns over the long term. Investors aim to invest over a longer period.

Description of Fund

The Fund typically invests in a select number of attractively valued companies listed on global share markets (usually a minimum of 30 long holdings).

Investment philosophy

Antipodes believes that equity investment returns are primarily a function of:

• Economic performance of the business you own and the durability of this performance, that is, business resilience; and
  
• Price paid or starting valuation.
  

Antipodes defines investment risk as the risk of permanent loss of capital and/or unforeseen volatility and, in this sense, it believes risk is best controlled by:

• Ensuring the price paid for a stock includes a margin of safety, that is, represents a discount to intrinsic value; and
  
• Developing a deep understanding of each stock within the context of the broader portfolio.
  

Business resilience is determined by the degree and sustainability of competitive advantage and value drivers since excess returns will result in new competition, technological disruption, greater regulation and management missteps. Accordingly, in the long-term all businesses succumb to changes in the operating environment as depicted below in the Antipodes Capital Lifecycle Model.

Importantly, the market as an extrapolation engine can be selectively irrational in response to the continuum of operating environment change, creating a pragmatic value opportunity to allocate capital on favourable terms:

• Cyclical
  
• Structural
  
• Socio/macroeconomic
  

How we invest your money

The Fund has a maximum single stock limit of 7.0% of the Fund's NAV.

The top 10 positions will typically account for 25% to 35% of the portfolio and the top 30 positions 60% to 80%.

The Fund is also permitted to also hold fixed income and debt securities, bullion, and other physical commodities.

Asset allocation

• International equities (inc. equity derivatives): 75% - 100%

• Cash equivalent investments: 0% - 25%

The Fund is also permitted to utilise exchange traded derivatives for risk management purposes subject to the specific restrictions that such derivatives cannot be used to gear portfolio exposure and that the underlying effective face value is limited to 10% of the NAV of the Fund unless used to manage currency risk.

Currency exposure will generally reflect the currency of the underlying securities. However, where the Investment Manager believes there is a strong likelihood of a decline in an underlying currency, currency derivatives, both over-the-counter and exchange traded, may be used to hedge currency exposure subject to the specific restriction that such derivatives cannot be used to gear portfolio exposure.

The Fund does not have limits with respect to geographical locations.