Fund

L1 Capital International Fund

We are a long-only investment manager. We do not use leverage and we do not short. Since we only invest when we have high conviction, we manage a concentrated portfolio (comprising typically 20 to 40 companies). We look for investment opportunities all around the world and are unconstrained by region or sector. We simply focus on identifying businesses which we assess to be high quality on a bottom-up basis, are well managed, conservatively financed, and will increase shareholder value over time. We construct a portfolio to maximize risk-adjusted returns and reduce the risk of permanent capital loss. While we expect some clients to measure our performance against a benchmark, we invest with an absolute return mindset.

We do not attempt to ‘time’ the market. Cash levels are an output of how much conviction we have in investment opportunities given our assessment of risk and expected returns. We have the f­lexibility to hold up to 25% of the portfolio in cash.

Type of investments Listed securities globally, developed market focus
Long only, no shorting, no leverage
Number of investments 20 to 40, typical position size 3% to 6%
Cash weighting 0% to 25%
Time horizon 5+ years
Hedging Unhedged
Benchmark MSCI World Net Total Return Index in AUD
Investment objective

Deliver attractive risk-adjusted returns over a medium to long term investment horizon whilst lowering the risk of a permanent loss of capital

To outperform the benchmark over rolling 5 year periods (net of all fees and expenses before tax)

Fee structure

Management fee:  1.2% p.a. of the net asset value of the Fund (including GST and RITC).

Performance fee: 15% over benchmark, subject to any underperformance being recouped.

There must be positive absolute performance (adjusted for distributions) in the Performance Period (otherwise positive relative performance is carried forward to the next Performance Period)

Minimum investment $25,000
Liquidity Daily

Forms

To invest in the L1 Capital International Fund please download and read the PDS and complete the application form. Please read the Reference Guide which forms part of the PDS. You can also contact us for further assistance.

Research

OrganisationRating / Recommendation
Zenith1Recommended
Independent Investment Research2Investment Grade

1The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned August 2020) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners. com.au/RegulatoryGuidelines

2The information, reports, financial models, forecasts, strategies, audio broadcasts and other media (referred to as “Content” throughout this Legal Notice), provided on this web site has been prepared and issued by Altavista Research Pty Ltd trading as Independent Investment Research “IIR”, Independent Investment Research Holdings Pty Ltd (ACN 155 226 074), as authorised to publish research under an Australian Financial Securities Licence (AFSL No 420170) which allows Independent Investment Research to offer financial service advice to retail and wholesale clients. Users of this web site should not act on any Content without first seeking professional advice. Whilst the Content contained on this web site has been prepared with all reasonable care from sources which we believe are reliable, no responsibility or liability is accepted by Independent Investment Research, for any errors or omissions or misstatements however caused. Any opinions, forecasts or recommendations reflect our judgement and assumptions at the date of publication or broadcast and may change without notice. Content on this web site is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. We are not aware that any user intends to rely on the Content provided or of the manner in which a user intends to use it. In preparing our Content it is not possible to take into consideration the investment objectives, financial situation or particular needs of any individual user. Access by any user to this website does not create a client relationship between Independent Investment Research and the user. Users seeking to invest must obtain individual financial advice to determine whether recommendations are appropriate to their investment objectives, personal financial situation or particular needs, before acting on any recommendations. Any Content is not for public circulation or reproduction, whether in whole or in part and is not to be disclosed to any person other than the intended user, without the prior written consent of Independent Investment Research.