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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.

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 (RE Services) 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

Investment Philosophy

Long-term Investing in the Technology Sector

In this article we explore accounting quirks within the technology sector and why buying growth at any price can be a risky decision. When assessing technology companies, or growth companies in general, it’s advisable to ensure the management team is on your side, especially when the share price is under pressure.

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Stock Profiles

IT Resellers: An Update from Europe

A recent research trip provided the opportunity to probe the investment theses for most of the Fund’s holdings domiciled in Europe and the UK. An example of such effort involved meeting with the management of IT value-added resellers Softcat and Bechtle, speaking with their competitors and also with industry participants.

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Investment Philosophy

2022 YTD Performance Update

2022 performance has so far been disappointing for the Fund on both an absolute and market relative basis. In this piece we will highlight the headwinds currently facing the portfolio, explain portfolio changes and provide an update on the recent reporting season and the current outlook for the portfolio.

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Learn more about the Fund

Investor Handbook

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Responsible Investment Policy

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