Benefits of investing in the Lennox Australian Small Companies Fund

• An actively managed portfolio of small companies: Lennox invests using both qualitative screening and in-depth fundamental research to identify investment opportunities.

• Experienced investment team: The investment team has a long and successful history investing in Australian small and micro-cap companies.

• A refined and tested investment process: Lennox has a robust investment process which is combined with key insights gained through deep-dive research on the ground'.

• Risk aware: Lennox embeds risk management at the centre of its investment philosophy and portfolio construction.

Risk level

High

About the Fund

Lennox's flagship fund, the Lennox Australian Small Companies Fund was launched in May 2017. It is an actively managed, style-agnostic portfolio that invests in a broad range of smaller companies. The fund's objective is to identify companies with compelling medium term valuations that satisfy our ESG (Environmental, Social and Corporate Governance)  criteria and we believe will not disappoint the market.

Our investment approach is based on fundamental analysis and in-depth research. We focus on identifying businesses that have strong management teams, sustainable earnings profiles and favourable growth prospects due to competitive advantages and/or industry dynamics.

Investment approach

Lennox takes an active, fundamental approach to sustainable investing. We use our investment philosophy and process to exploit inefficiencies in the market that lead to pricing discrepancies and investment opportunities for our clients. We believe our active, fundamental approach allows us to gain key insights into the companies we invest in whilst avoiding those we believe will disappoint the market.

Our philosophy is based on the following three core beliefs:

1. The qualitative attributes of a company influence our ability to forecast real earnings
2. A small number of key drivers will determine a business's success
3. Short-term earnings expectations must be met.

Through the application of these beliefs, we aim to benefit from change by being exposed to the economic winners of social, structural and company change. In addition, our no surprise' mindset permits us to invest only in transparent businesses with strong management and forecastable earnings.

About Lennox Capital Partners

Lennox Capital Partners (Lennox) is an active, boutique equities investment manager based in Sydney and majority owned by its Principals and Portfolio Managers.

Lennox invests with a fundamental, bottom-up and sustainability focus. Lennox’s philosophy and process capitalises on the inefficiencies in the equity market, aiming to identify at an early stage companies who are the beneficiaries of change – the leaders of tomorrow.

How we invest your money

The Fund provides exposure to a select, actively managed portfolio of small cap equities. This is achieved by investing in securities listed, or expected to be listed, on the Australian Securities Exchange (ASX) or the New Zealand Securities Exchange (NZX). The Fund may also provide exposure to equity issued by Australian or New Zealand entities on other approved exchanges. The Fund may also invest in derivatives (including options, futures and warrants), cash and unlisted companies that are expected to list within 12 months.

The portfolio is a collection of the investment team's best bottom up' ideas. The Fund will hold a concentrated number of securities that Lennox believes have medium term valuation upside as well as minimal near-term earnings risk. The portfolio is managed with strong adherence to Lennox's risk framework and investment objectives. The investment team ensure the portfolio is appropriately diversified. Exposure to any one security and thematic are limited and liquidity within the portfolio is actively monitored.

The Fund does not intend to actively hedge international currency exposures.

Strategic asset allocation ranges

• Securities: 80-100%

• Cash: 0-20%