GLOSSARY

This section of the website is intended to help retail investors understand industry terms.

Active ownership: utilising your rights as a shareholder to influence and improve a portfolio company’s sustainability and governance practices.

Emerging markets: markets transitioning from a developing to a developed economy, often characterised by rapid economic growth.

Frontier markets: Early-stage developing markets that are generally smaller, riskier, and less liquid than emerging markets.

Equities: shares issued by a company, representing ownership in that company. Often referred to as stocks or shares.

Long-only: the investment strategy only invests in companies that it intends to hold for a period of 3-5 years, exclusively buying and not shorting.

Concentrated portfolio: the number of holdings in the portfolio remains relatively small compared to the benchmark and peers, with higher exposure to each holding and less diversification across holdings.

High-conviction: a strong belief in the long-term growth potential of a stock based on a robust business model. Belief is founded upon rigorous research, not speculation.

ESG+C: Environmental, Social, Governance and Culture. A framework for assessing a company’s sustainability, governance and corporate culture standards.

Bottom-up research: Research begins at the stock level, assessing a company's microeconomic factors, including business models, growth potential and governance standards. Once these have been assessed, broader macroeconomic factors are considered, including country- specific GDP growth.

Benchmark-agnostic: a strategy where little or no attention is paid to the fund’s benchmark, which is not used as a guide for investment decisions.

Market Capitalisation: the total value of a company’s shares traded on a stock exchange, calculated by multiplying the share price by the number of shares outstanding.

Deep moats: a unique selling point or competitive advantage that protects a company’s long-term profitability and market share from competitors.

Absolute returns: the total gain or loss from an investment, without comparison to a benchmark.

Benchmark: an index used to measure and compare a fund's performance.

Re-rating: a change in a stock’s valuation where investors are willing to pay a higher price for the same number of shares.

Macro-overlay: using macroeconomic factors to inform an investment decision.