Investment Strategy

Key Strategies

• The Funds' are managed using a deep value investment philosophy based on fundamental analysis of individual companies.

• The Funds' primarily invest in companies listed on the Australian and international stock exchanges.

• Investment is focused on small and medium sized manufacturing, service and distribution businesses.

• The Funds' portfolios are highly concentrated and generally comprise between 50 to 100 stocks.

• The total cost of an investment in any one company will not exceed 15% of the book value of the Fund's portfolio.

• Up to 100% of a Funds' foreign currency exposure may be hedged primarily through short-term forward contracts.

• All funds are managed on a long-only basis and we do not use leverage.

Investment Objective

 The objective for each Hunter Hall Fund is to:

• Substantially outperform its relevant benchmark index over the medium to long term by investing in companies listed on the Australian and international stock exchanges, without incurring significant risk to capital;and

• to follow its relevant Ethical Investment Policy.

Analytical Approach

In simple terms, research is directed at discovering 'good' shares in 'good' companies which own 'good' businesses. That is, the objective is to discover undervalued shares in companies which are focused on growing per share value and own high return businesses.

Hunter Hall's research process is based on the analysis of primary sources such as financial statements and interviews with industry participants.  Secondary sources, such as stockbroker reviews or the media, are generally viewed as being of less value.

Investment candidates are subject to a detailed analysis of all available financial information, and integrated forecasts are made for the medium term future. If the candidate looks promising, qualitative information such as publicly available documents, market research surveys and interviews with customers, competitors, suppliers and company management is considered. By putting together a 'matrix' of information sources, the Portfolio Managers gain an informed view of the value of the stock and the factors determining this value.