Our objectives
Recall that the Fund invests in a portfolio of 20-40 high-quality global small and mid-cap companies that we believe are attractively valued. Our goal is to generate double-digit annual returns over rolling five-year periods while minimising the risk of permanent capital loss. We expect that over time, the underlying earnings growth of our portfolio companies will drive those returns. However, in the short-term performance will be influenced by sentiment and earnings surprises, both positive and negative. How do we achieve this goal? Over the past year, we’ve published six chapters of our investor handbook. When completed, we hope this will help our existing and prospective investors understand our investment philosophy and approach in more detail.
FY25 performance review
The Fund delivered a return of 10.3% gross and 9.4% net of fees and other charges in FY25. The fundamental performance of our portfolio companies was generally strong. The weighted average earnings of the portfolio increased by over 10%, and the Fund received over 1% in dividends. The portfolio average price-earnings multiple was relatively flat.