Overview
The company was formed to provide investors with the opportunity to invest in a long-term portfolio of international shares and gain access to the specific investment process and the funds management experience of Peters MacGregor Capital Management Pty Ltd (PMCM). The company was incorporated on 15 December 2003 and listed on the Australian Stock Exchange on 16 April 2004.
Objectives
The key focus of the company is capital growth. The investment objective is to exceed the average return of the MSCI World Total Return Index (net local) over the long term (greater than 5 years). The return of this index has approximated 8% since inception (30 plus years ago).The performance of this Index is historical and not necessarily an indication of future performance.
The Portfolio will have a high level of concentration relative to other investment portfolios and it is not expected that actual performance of the Portfolio will track this MSCI index.
The investment manager follows a disciplined approach to investing. Please refer to the Investment Philosophy page for further details. The investment style has a long term focus on overall return. Potentially the company will have significant cash surpluses invested at prevailing interest rates as it waits for the market opportunities to arise.
The company does not borrow, and generally uses foreign currency hedging contracts to mitigate the risks of fluctuations in foreign currency movements with respect to investments domiciled in foreign countries.
Manager
The portfolio of investments of the company will be selected and managed by PMCM, a global equities fund manager. PMCM also manages investment portfolios for private wholesale investors on an Individual Managed Account basis (current minimum subscription of A$2 million) and is licensed as an Australian Financial Services Licensee (No. 225984) under the Corporations Act.
Fees
Management Fee
PMCM will receive a management fee equivalent to 1% per annum of the Value of the Portfolio.
Performance Fee
A Performance Fee is payable at 20% of the amount by which the Portfolio’s performance (after deducting the management fee) exceeds the high water mark.
No performance fee will be payable to the Manager in respect of any performance period where the Portfolio’s return has been less than the high water mark.
High Water Mark
The high water mark in any given period will be the greater of:
- The previous period’s closing balance of the Portfolio (subject to adjustment) compounded by 7% per annum; or
- The previous period’s high water mark (subject to adjustment) compounded by7% per annum.
The result is that the high water mark will increase at a minimum by 7% per annum.
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