Strategy

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
Platform Availability Asgard, Australian Money Market, BT Panorama, CFS FirstWrap, Hub24, Macquarie Wrap, Mason Stevens, MLC, Netwealth, North, Powerwrap, Praemium

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
Lonsec2Recommended

1 The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (Zenith) rating assigned to L1 Capital International Fund (Nov 22) 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, including target markets of financial products, where applicable, 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 methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

2 The rating issued for L1 Capital International Fund (Mar 23) is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. Copyright 2023 Lonsec. All rights reserved.