Jacob Mitchell’s successful track record bolsters confidence of ratings agency
As it officially opens to investors, Antipodes Partners Limited’s first listed investment company (LIC) – Antipodes Global Investment Company Limited (ASX: APL) – has received a “Recommended” rating from Zenith.[i]
According to the report, Zenith holds Antipodes Partners Chief Investment Officer and Lead Portfolio Manager, Jacob Mitchell, in “high regard, considering him to be an experienced and high quality investor”.
Antipodes Partners’ strategy focuses on growing wealth over the long-term by generating absolute returns in excess of the benchmark at below market levels of risk. Jacob has been able to demonstrate the success of this approach over the long-term, a process that delivers throughout market cycles.
APL is based on Antipodes Partners’ successful managed fund, the Antipodes Global Fund. In its inaugural year#, this fund delivered 7.4% net return, significantly outperforming the MSCI All Country World Net Index (-0.6%). It also ranked second out of 54 global equity funds covered by The Morningstar® Australian Institutional Sector Survey (June 2016).*i
Antipodes Partners has grown its funds under management from circa $200 million to $769 million since inception.^
APL provides retail investors in Australia and New Zealand with access to a long-short global securities investment portfolio with active currency management. Zenith “retains confidence in Mitchell’s ability to manage APL given his experience running a similar strategy at Platinum”.
Whilst at Platinum, Jacob served as Portfolio Manager for the Platinum Unhedged Fund (January 2007 to May 2014, achieving 5.7% per annum outperformance after fees) and the Platinum Japan Fund (January 2008 to November 2014, achieving 9.9% per annum outperformance after fees), the highest alpha generated by any Platinum Trust Fund over this period.
Antipodes Partners is supported by leading multi-affiliate investment management firm, Pinnacle Investment Management Limited (Pinnacle) which owns a minority stake in the business. Pinnacle currently supports seven specialist investment managers that collectively manage over $21 billion.
Zenith sees the current arrangement with Pinnacle as a “positive, as it allows the investment team to focus on their research efforts”.
Despite APL representing the first LIC to come out of a Pinnacle boutique, Zenith “gains confidence” in the Board given the LIC board experience of Chairman Jonathan Trollip and Independent Director Chris Cuffe.
Mr Mitchell said, “via exposure to global opportunities, APL offers SMSF investors an opportunity to diversify away from Australian stocks and property”.
The initial public offering (IPO or Offer) is seeking to raise up to $220 million, with the ability to accept an additional $110 million in oversubscriptions. The IPO has an issue price of $1.10 per share. Investors will also receive one option for every one share issued under the Offer.
APL’s offer period is open until 30 September 2016. Trading on the ASX is expected to commence on 14 October 2016.
National Australia Bank (NAB) is the Lead Arranger of the Offer. Joint Lead Managers include NAB, Morgans, Morgan Stanley, Ord Minnett and Taylor Collison. The Co-Managers are Bell Potter, JBWere and Wilsons.
*The Morningstar Australian Institutional Sector Survey (June 2016), ranked the Antipodes Global Fund portfolio based on gross investment performance over the last financial year.[ii]
#Inception date is 1 July 2015, when the current investment strategy was adopted. The fund was established in June 1999.
^1 July 2015 – 29 July 2016.
[i] Zenith Disclaimer: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned <August 2016>) referred to in this document is limited to “General Advice” (as defined by the 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. 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.
Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines
[ii]Morningstar Disclaimer © 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).