International share funds
International Share Funds have exposure to a diversified portfolio of international shares or can be invested directly into a range of international shares across a number of global stock exchanges in developed, emerging, and/or frontier market. These funds can offer varying levels of risk and return but are generally riskier than cash and fixed interest securities.
| Investment Options | Risk Level | Investment Objective | Investment Strategy |
|---|---|---|---|
| International Share Funds | |||
| Munro Global Growth Small and Mid Cap Fund | 7- Very high | The investment return objective of the Fund is to maximise long term capital appreciation, by investing primarily in a concentrated long-only portfolio of global growth oriented small and medium capitalisation companies. The Fund aims to achieve a return (after fees) exceeding the MSCI ACWI SMID Cap Index (Net) in $A over a rolling 5 to 7 year period. | The Fund is designed for investors seeking a long term exposure to a concentrated portfolio of high quality global growth oriented small and medium capitalisation equities with the potential for capital gains. The Fund will invest in 20 to 40 listed equities that are constituents of the MSCI ACWI SMID Cap Index (or have similar market capitalisation characteristics to companies on the Index), across a range of industries and countries, and is permitted to invest up to 10% of net asset value in initial public offering securities. Munro will focus on identifying and investing in global companies that have the potential to grow at a faster rate and a more sustainable basis than the overall market. The base currency of the Fund is the Australian dollar (AUD). No management of the foreign currency exposure relative to the Australian dollar is undertaken for the Fund. |
| Arrowstreet Global Equity Fund | 6-High | The Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI All Country World ex Australia Index, in $A unhedged with net dividends reinvested (Benchmark). | The Fund provides exposure to a diversified portfolio of global equities which may include securities listed in emerging and frontier markets as well as securities of small and micro capitalisation companies. The Fund is actively managed using a quantitative approach and stock selection modelling that evaluates securities on an integrated basis to exploit tactical opportunities across different factors, with the aim of controlling risk relative to the Benchmark and maximising the likelihood of outperforming it. The Fund’s exposure to foreign currencies is not hedged back to Australian dollars. |
| PM Capital Global Companies Fund | 6-High | To provide long-term capital growth and outperform the greater of the MSCI World Net Total Return Index (AUD) or RBA cash rate over rolling seven year periods. The Fund is not intended to replicate the index | PM Capital’s process is based on finding those relatively simple ideas that have been overlooked by the market, including strong companies that are trading at levels different to its view of their intrinsic value. The Fund has a wide investment universe and will seek to invest capital wherever PM Capital considers the greatest risk reward opportunities exist. The investment process is bottom up and research intensive. It is the same process that identifies both risk and opportunity.
The investment mechanisms that the Fund uses include leverage, derivatives and short selling. The Fund may also be exposed to, and actively trade, global currencies. With respect to the Fund’s approach to seeking to hedge its currency exposure, the level of hedging back to the Australian dollar will depend on PM Capital’s expectation of future currency exchange rate movements and is actively managed with the objective of delivering positive Australian dollar returns. |
| Plato Global Alpha Fund | 6- High | The Fund aims to outperform the MSCI World Net Returns Unhedged in AUD benchmark over a rolling 5-year basis | Plato’s philosophy is that high-quality companies, selling at a discount to intrinsic value with a catalyst and positive sentiment, tend to outperform the market. In contrast, low quality companies, selling at a premium to intrinsic value with a negative catalyst/sentiment, tend to underperform the market. To further help identify potential underperformers and short opportunities, Plato employs a proprietary “Red Flags” system. These span corporate governance, remuneration, forensic accounting, financial distress, and social and environmental impacts (see below under heading ‘Labour Standards, Environmental, Social or Ethical Considerations’). Plato recognises its duty to behave responsibly in its business activities and towards those whom its actions affect. As an investment manager, Plato believes that a high standard of business conduct, as well as a responsible approach to ESG issues makes good business sense and enhances shareholder value. The Fund’s typical net market exposure (long minus short positions) is between 90% and 100% of NAV of the Class. The Fund’s typical long exposure to equities is between 140% and 150% of NAV of the Class. The Fund’s typical short exposure to equities is between 40% and 50% of NAV of the Class. The maximum long equity exposure to equities is 180% and short equity exposure is 80% of NAV of the Class. The Fund’s maximum gross exposure to equities (sum of long and short positions) is 260% of NAV of the Class. The Fund is permitted to invest in OTC derivatives up to 5% of NAV, which excludes OTC derivatives used to manage currency risk. Plato limits the size of individual short positions to less than 2% of the NAV of the Fund. |
| Betashares Global Shares ETF Fund | 6 – High | The investment objective of the Fund is to provide an investment return that aims to track the performance of the Solactive GBS Developed Markets ex Australia Large & Mid Cap Index (an index comprising approximately 1,300 developed markets companies), before considering fees and expenses. The index is designed to provide exposure to the world’s largest developed markets companies, based on free float-adjusted market capitalisation (ex Australia). | In seeking to achieve the investment objective of the Fund will employ a passive management approach designed to track the performance of the Index, before taking into account fees and expenses. The Fund will seek to track the relevant Index by adopting a ‘sampling’ strategy. Under this approach, a Fund will not hold all of the securities comprising the relevant Index and may hold securities in weightings which differ from the Index. A sampling strategy is often used for funds tracking an index that is too broad to efficiently purchase all of the index’s securities. |
| Betashares Global Shares Currency Hedged ETF Fund | 6 – High | The investment objective of the Fund is to provide an investment return that aims to track the performance of the Solactive GBS Developed Markets Currency Hedged ETF ex Australia Large & Mid Cap Index (an index comprising approximately 1,300 developed markets companies), before considering fees and expenses. The index is designed to provide exposure to the world’s largest developed markets companies, based on free float-adjusted market capitalisation (ex Australia). | In seeking to achieve the investment objective the Fund will obtain investment exposure to the securities listed in the index indirectly, by investing substantially all of its assets in units of the Betashares Global Shares ETF, an exchange traded fund admitted to trading on the ASX. As the fund is hedged to Australian dollars, for index-tracking purposes, the fund intends to hedge the currency exposure using forward foreign exchange contracts (or similar instruments), with the objective of substantially offsetting the Fund’s exposure to movements in the relevant foreign currency. While this approach seeks to minimise the impact of currency fluctuations on Fund returns, it does not necessarily eliminate exposure to all currency fluctuations. |
