Value Fund

Income Fund
Philosophy We believe people are motivated by short-term outcomes, over-emphasise recent information and are uncomfortable having unpopular views.
Investment Process The Merlon process is simple: we invest in undervalued companies where we think market participants have become too pessimistic.
ESG Integration Deep consideration of ESG within the investment process, and strong active ownership. Specialised resource to support the investment team.
Investable universe ASX listed subject to liquidity, with a focus on ASX200
Number of stocks 25-35
Risk Management (Level I) Risk managed through: i) Fundamental research; ii) portfolio risk constraints; and iii) statistical risk analysis
Risk Management (Level II) N/A Hedge overlay targeting 30% market exposure (risk) reduction
Outperformance target 3-5% p.a.
vs ASX200
1-3% p.a.
vs 70% ASX200 / 30% Bank Bills
Likely investor type* Investors seeking capital growth Investors seeking capital growth with stable, tax effective income

*For further information on the target market for these funds, please read the Target Market Determination located on the fund pages.