Global Small &
Mid Cap Fund

Fund Overview

We invest in a portfolio of global small and mid cap international companies.

Taking a bottom-up approach to investing we undertake deep fundamental research of both the quantitative and qualitative aspects of investee companies.

Our strategy is benchmark unaware because we believe this unconstrained approach allows maximum flexibility to pursue attractive risk-adjusted investments.

Our intention is to hold high-quality businesses that generate attractive returns on capital employed through a full market cycle, with low levels of debt, managed by highly competent and aligned executive teams.

We aim to achieve annualised returns, in excess of the MSCI World SMID Index (after all fees and expenses) measured over a market cycle, which we consider to be seven years.

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Number of Stocks

30–40

Market Capitalisation

US$500m – $25bn

Style

Long-only quality

Objective

Benchmark +3% (estimated 8–12% p.a through the cycle)

Benchmark

MSCI World SMID AUD (Net)

Responsible Entity

The Trust Company Limited part of the Perpetual Group

Administrator

Mainstream Fund Services

Auditor

Ernst & Young

Performance

Past performance is not indicative of future performance

Research Ratings
& Awards

Responsible Investment

Fairlight’s investment strategy is executed with an ethical mindset.

We use hard exclusion screens to eliminate harmful industries, such as tobacco, armaments, gambling, alcohol and mining.

Each of the companies we research is also scored across a range of environmental, social and governance (ESG) metrics. These generate a cost of capital charge that is an input into a company’s valuation. Companies with relatively poor ESG practices incur a larger discount rate than those that are best practice.

We practice active ownership by engaging with companies on ESG issues (including disclosure) and voting our proxy rights.

Latest Insights

Stock Profiles

A less risky definition of growth

Fairlight’s definition of growth differs from that of the broader market as we have a far higher hurdle for profitability compared to sales growth. IT research provider Gartner is an example of a portfolio holding that possesses all the quality characteristics that we look for in a growth company.

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Stock Profiles

Zozo to the Moon

Zozo is a Japanese online apparel marketplace, catering to fashion conscious consumers under 40 years of age. The company was founded in 1998 by punk rock drummer Yusakau Maezawa originally as a mail-order service for imported records and CDs that were difficult to find in Japan

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Stock Profiles

A practical approach to corporate culture

In a world where intangible assets such as research and development, employee training and branding increasingly form the backbone of companies’ competitive advantages, it makes sense that a good corporate culture can partly explain strong and consistent business performance, especially by companies who mostly rely on their people for their success

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Learn more about the Fund

Fund Factsheet

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Investor Handbook

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Responsible Investment Policy

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Product Disclosure Statement

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