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L1 Capital International Fund

High conviction international equities fund investing with industry leaders across all market caps
High conviction strategy based on differentiated quality and value investment philosophy
Invests with industry leaders across all market caps
Exceeding investment objective since inception*

A fundamental, bottom-up, independent research process centred around quality and value

Fund manager

David Steinthal

Chief Investment Officer | L1 Capital InternationalView bio

Investment philosophy

L1 Capital International believes that quality and value are key drivers of long-term total shareholder returns.

The Fund will generally invest in businesses that demonstrate:

  • Durable business models
  • Well structured, growing industries
  • Aligned management with a strong capital allocation track record
  • Growing free cashf­low
  • An ability to sustain high returns on invested capital
  • An ability to reinvest capital at attractive incremental returns and/or return excess capital efficiently to shareholders
  • A conservative balance sheet and funding structure
  • Proactive, favourable ESG policies and practices

Strategy overview

Strategy launch date
1 March 2019
Investment strategy
The L1 Capital International Fund is a high conviction international equities strategy in ~25 high quality companies with favourable cashflow-based valuations in well-structured industries using fundamental, bottom-up analysis with detailed risk assessment. The Team applies a high threshold for only investing in high quality businesses at attractive valuations, which means they do not invest in all sectors or all companies. The portfolio’s industry exposure is flexible without the constraints of artificial concepts such as ‘Growth’ or ‘Value’, as well as investing in a wide range of companies by size.
Investment approach
Investing in high quality companies with favourable cashflow-based valuations in well-structured industries using fundamental, bottom-up analysis with detailed risk assessment.
Investment objective
• Deliver attractive risk-adjusted returns over a medium to long term investment horizon whilst lowering the risk of a permanent loss of capital.
• To outperform the benchmark over rolling 5 year periods (net of all fees and expenses before tax).
Benchmark
MSCI World Net Total Return Index in A$
Holdings
20 – 40 stocks
Position sizes
Minimum 2%
Typical 3 – 7%
Maximum 10% (at initial investment)
Geography
Developed markets North America, Europe, Asia, Aust/NZ
Cash weighting
0% to 25%, typically <5%
Hedging
Unhedged
Zenith Rating^
Recommended
Lonsec Rating†
Recommended
Fees
Management fee 1.2% p.a.
Performance fee 15.38% over Benchmark*
High watermark Yes

*There must be positive absolute performance (adjusted for distributions) in the performance period. Otherwise, positive relative performance carries forward to next Period.
Investment Manager
L1 Capital International Pty Limited (ACN 628 068 717), an authorised representative (no. 1273764) of L1 Capital Pty Ltd (ACN 125 378 145, AFSL 314 302).

Fund performance

Net performance as at **DATE**. Past performance should not be taken as an indicator of future performance. Unit Trust Inception is 1 March 2019 (returns measured from Index close). ETMF Inception is 22 November 2023. Numbers rounded to one decimal place and may not add due to rounding.
*MSCI World Net Total Return Index in A$.

Fund reports

Download
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023

Fund insights

ESG approach

L1 Capital International integrates ESG considerations into its investment diligence and decision-making alongside qualitative and financial considerations. Businesses in which we invest must have sustainable policies and practices which address and improve ESG issues over the medium to long term. Our approach can be summarised in three ESG principles.

L1 Capital International:

  • is a long-term, responsible investor, investing in listed companies which meet our strict quality requirements based on our rigorous, proprietary research-driven investment process.
  • espouses a strong culture of compliance, risk management and ethics.
  • seeks to ensure the Board and Management of portfolio companies actively promote a similar culture.

We consider the governance of a company and any material social and environmental impacts when forming our view of each company’s potential for long-term success. We focus on identifying any areas of potential concern and, where appropriate, discussing these with company management and monitoring their progress over time. We have developed our own qualitative ESG ratings which capture our assessment of each businesses across six key areas:

  • Environment
  • Management
  • Governance
  • Safety
  • Taxation
  • Public Policies and Community Support

Please see our ESG & Responsible Investment Policy to learn more about how we integrate ESG considerations into our investment thinking.

How to Invest

The L1 Capital International Fund has a ‘dual registry’ structure that allows investors to buy and sell shares in the Fund both off-market via the registry and on-market via the ASX.

L1 Capital International Fund (Managed Fund) – Ordinary Class
Off-market | Investors can apply and redeem in this unit class by applying online or completing an application form or via platform.
L1 Capital International Fund (Managed Fund) – (ASX:L1IF)
On-market | Investors can buy and sell units in this unit class on the ASX via their stockbroker, share trading account or other securities trading platform.

Please contact us for further assistance.

* Net performance as at **DATE**. Past performance should not be taken as an indicator of future performance.

Information contained on this page
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the L1 Capital International Fund (Managed Fund) ARSN 631 094 141 (ASX:L1IF). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This page has been prepared by L1 Capital International Pty Limited (ACN 628 068 717), (an authorised representative (no. 1273764) of L1 Capital Pty Ltd (ACN 125 378 145, AFSL 314 302)) and its officers and employees (collectively “L1 International”), to provide you with general information only. In preparing it, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither L1 International, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. All performance numbers are quoted after fees. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.

The L1 Capital International Fund (Managed Fund)’s Target Market Determination is available here. A Target Market Determination is a document which was required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.

Copyright
Copyright in this page is owned by L1 International. You may use this information in this publication for your own personal use, but you must not (without L1 International’s consent) alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.

^ Zenith Investment Partners disclaimer
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (Zenith) rating assigned to L1 Capital International Fund (Managed Fund) (November 2023) referred to in this document is limited to General Advice (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith methodology, ratings definitions and regulatory compliance are available on our Product Assessments and here.

† Lonsec Research disclaimer
The rating issued for L1 Capital International Fund (Managed Fund) (May 2024) is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. Copyright 2023 Lonsec. All rights reserved.

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