Updates to the Investment Options Menu

Change to Strategy wording 

The Investment Manager strives to achieve the above objectives by adopting a value-oriented, bottom-up investment process focused on in-depth fundamental research to identify companies that trade below their intrinsic value for reasons that they can identify, believe are temporary and have a clearly identified path to achieving fair value. 

The Investment Manager aims to select the most attractive securities to construct a concentrated, high active portfolio that seeks to provide asymmetrical returns by participating in up markets while aiming to protect in down markets.  

The portfolio will exhibit a clear value bias and seek characteristics such as 1) price / earnings ratios below the market, 2) price / book ratios below the market, 3) enterprise value / free cash flow ratios below the market and 4) dividend yields above the market. 

The portfolio will primarily invest in companies incorporated in developed markets and may hold up to 20% of the portfolio in companies incorporated in emerging markets. The Portfolio is not permitted to hold tobacco stocks that are directly involved in tobacco production, where tobacco production accounts for 10% or more of a company’s gross revenue. The option does not hedge currency risk.  

Effective on or around 4 December 2023, Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley) will be appointed to manage this option as a delegated investment manager.  After this date, the option will be the ‘Barrow Hanley Concentrated Global Share’. 

Change to Strategy wording 

The strategy is actively managed and invests in a portfolio of Australian equities outside the largest 20 Australian listed companies by market capitalisation (as defined by the S&P/ASX 20 Total Return Index). Antares will seek a greater diversification within their Australian shares exposure beyond the top 20 ASX listed stocks by market capitalisation, and are willing to accept a higher level of risk in exchange for the opportunity to earn higher potential returns.

The option contains only Antares’ highest conviction investment ideas and is relatively unconstrained by the Benchmark’s industry or company weights. Antares follows a bottom-up investment process, with investment decisions made by undertaking in-depth proprietary research and analysis of individual companies and securities.

In general, Antares aims to invest in companies where the current share price does not fully reflect its view of the potential value of the company’s business. Through company contact and detailed financial and non-financial analysis, Antares’ research analysts gain a first-hand understanding of Australian businesses and the industries in which they operate.

Antares may invest a maximum of 10% above the benchmark weight in companies listed outside of the S&P/ASX 200 Total Return Index. This may include investments in equities expected to be listed on the Australian share market. Securities held in the portfolio may sometimes move into the S&P/ASX 20 Total Return Index and when this happens the investment manager will use its discretion to sell down that security, having regard to the best interests of investors. In this way, the portfolio may hold securities in the S&P/ASX 20 Index from time to time.

Change in Strategy wording 

The option adopts a long-only stock picking approach that invests in listed shares of 150-250 companies around the globe, which aims to; create shareholder wealth as a result of their intentional management strategy and/or business models; identity stocks that are priced at a significant discount to conservative estimates of cash-based, long-term intrinsic value and demonstrate a reasonable investment ‘margin of safety’ in the analysis of the above two attributes. 

The option aims to be fully invested in global listed shares, however, it will have exposure to cash. The combination of management strategy, capital allocation, business models, long-term valuation opportunities and an investment ‘margin of safety’ leads to a style that is both valuation and quality focused. 

The option may have exposure to derivatives or exchange traded options for exposure management purposes. The option does not hedge currency risk.

Effective on or around 30 November 2023, the option’s investment strategy will be implemented.

Changes to investment option risk profile 

Removal of ‘derivative risk’ and ‘credit risk’