MA1 Investment Objectives and Strategy

Monash Absolute Investment Company

The Company’s Investment Objective

To achieve a targeted positive return over a full investment cycle (which the Investment Manager and the Company consider to be a period of 5 to 7 years); and to avoid a negative return each financial year, through an Absolute Return style of investing.

Investment Strategy

Monash Investors believes that most equity securities are fairly priced most of the time, but some will be significantly mispriced and will work to identify and exploit situations where it perceives significant mispricing. Monash Investors believes there are many potential causes of mispricing that arise from recurring situations or patterns of behaviour and seeks to identify these to help inform its search for investment opportunities.

Monash Investors employs an Investment Strategy which is high conviction, benchmark unaware, security size agnostic, investment style (i.e. growth, value, discounted cash flow) agnostic and has a capital preservation focus. Monash Investors believes that having greater flexibility will increase the likelihood of achieving its investment objective.

Monash Investors is focused on identifying securities that meet one or more of the following characteristics:

Insight: securities that the Investment Manager considers to be underestimated or misunderstood in some way by the market;

Growth: securities with high growth in revenue, cash flow or earnings per share forecast by the Investment Manager;

Value: securities that represent a high expected pay-off to a target price calculated by the Investment Manager; and

Event: securities that the Investment Manager has identified a near term event or catalyst that it believes should drive a share price reaction.

Key Features of the Investment Strategy

  • Portfolio with a small cap bias compared to a market capitalisation based index, such as the S&P/ASX 300 Index;
  • exposure to short selling opportunities;
  • construction of a Portfolio with exposure to Pre-IPO securities; and
  • seeking to maintain a more consistent return profile than the market, with lower volatility and lower Beta

Paul Clitheroe talks about the Monash Absolute Investment Company and his decision to become its Chairman

Simon Shields talks about the investment strategy of Monash Investors

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Monash Absolute Investment Company Limited (ACN 610 290 143) (Company) is the issuer of a prospectus dated 23 February 2016. The prospectus contains the Company’s offer to subscribe for ordinary shares in the Company, each with an attaching option, to raise a minimum of $25 million and a maximum of $80 million (before oversubscriptions) (Offer). A copy of the Company’s prospectus can be downloaded here www.monashinvestors.com or by calling Boardroom Limited on 1300 737 760. Investors should read the prospectus in full before deciding whether to participate in the Offer. Capitalised terms have the same meaning as they do in the prospectus. Anyone who wants to acquire shares and options in the Company, and participate in the Offer, will need to complete the application form accompanying the Company’s prospectus.

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