Global Equities Fund

Investment philosophy

The Victor Smorgon Partners Equities Team applies a disciplined investment approach that combines thematic insight, fundamental research, valuation analysis and qualitative assessment.

The approach is based on the view that long-term investment outcomes are influenced by both valuation and business quality. Valuation remains important in assessing prospective returns and downside risk, while qualitative factors such as management capability, industry structure, competitive positioning and capital allocation are central to assessing the durability of earnings and cash flow.

The investment framework is not defined by traditional “value” or “growth” labels. A valuation-only approach can overlook structural weaknesses in a business, while a growth-focused approach can understate the importance of price paid, cash flow support and capital discipline. The process therefore seeks to identify companies with exposure to durable long-term themes, supported by sound business fundamentals and assessed against a disciplined valuation framework.

The approach also reflects an absolute return orientation, with a focus on capital preservation and long-term compounding. Investment decisions are assessed on their standalone merits and relative attractiveness against other available opportunities, with an emphasis on risk-adjusted returns over time.

Markets can at times be influenced by short-term sentiment, recency bias and other behavioural factors. A research-led, valuation-aware and long-term approach is intended to assist in identifying opportunities where market pricing diverges from underlying business fundamentals.

Investment process

The Victor Smorgon Partners Equities Team employs a fundamental, bottom-up investment process informed by a top-down thematic overlay.

Research begins with the identification of long-term structural themes shaping industries and markets globally. Within those themes, analysis focuses on identifying companies that are well positioned to benefit through their market position, operating model, strategic relevance or competitive advantage.

Each opportunity is assessed using detailed fundamental research. This includes analysis of free cash flow generation, earnings durability, balance sheet strength, return characteristics and valuation. Qualitative factors are also assessed, including management execution, capital allocation, operating capability, supply chain dynamics, competitive structure and industry trends.

This process is intended to support a detailed understanding of how value is created within a business and across its industry. It also provides a framework for comparing opportunities across sectors, geographies and stages of the cycle.

Investment selection is based on a combination of thematic relevance, business quality, valuation support and risk/reward asymmetry. The process is designed to identify opportunities where the market price does not fully reflect the medium- to long-term earnings and cash flow potential of the business.

Portfolio construction and risk management

Portfolio construction is based on conviction, diversification, liquidity and risk awareness.

Position sizing reflects a range of factors, including thematic exposure, quality of the underlying business, valuation support, liquidity characteristics and expected contribution to overall portfolio risk. Portfolio exposures are assessed on both an individual position basis and in the context of broader correlations across themes, sectors and macroeconomic sensitivities.

The portfolio is constructed to maintain diversification across a range of underlying drivers rather than relying on a single market outcome or investment style. This includes balancing structural growth exposures, cyclical opportunities and more defensive holdings where appropriate.

Risk management is integrated throughout the investment process. Each position is assessed with reference to downside risk, liquidity, correlation, balance sheet strength and the range of potential outcomes. Capital is reallocated where the underlying thesis changes, valuation becomes less compelling, or more attractive opportunities emerge elsewhere.

This framework is intended to support consistent decision-making, disciplined capital allocation and resilience across different market environments. 

Why invest?

Thematic investment framework
Focus on long-term structural trends identified through the Victor Smorgon Group’s research.

Fundamental company analysis
Emphasis on companies with strong balance sheets, durable competitive advantages and resilient cash flow generation.

Disciplined portfolio construction
A concentrated portfolio with active risk management and liquidity oversight.

Investor profile

Designed for investors who:

• Seek long-term capital growth

• Have a minimum 5-year horizon

• Can tolerate equity market volatility

• Intend to hold as a minor allocation within a diversified portfolio