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What is the Global Shares Fund?

The Elevation Capital Global Shares Fund is a Portfolio Investment Entity (PIE) that seeks to provide investors with long-term capital growth and income by directly investing in equities on a global basis, while at the same time adhering to a “Margin of Safety” investment philosophy. The strategy of the Fund is primarily to invest in shares (equity securities – including Preferred’s and Convertibles*) of entities trading at a discount in relation to their Net Asset Value/Intrinsic Value**, with low debt levels***, which have a history of paying dividends and/or returning capital to shareholders and have some sort of economic moat - e.g. brands, franchises, other.

The Fund is managed by Elevation Capital Management Limited (Elevation Capital) a registered financial service provider in New Zealand under the Financial Service Providers (Registration and Disputes Resolution) Act 2008 (FSP# 9601). Elevation Capital is licensed under the Financial Markets Conduct Act 2013 as a manager of registered schemes.


* A Preferred stock/share is a class of ownership in a corporation/company that has a higher claim on its assets and earnings than common stock/equity. Preferred shares generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights. Preferred stock combines features of debt, in that it typically pays fixed dividends, and equity, in that it has the potential to appreciate in price. Convertibles are securities, usually bonds or preferred shares, that can be converted into common stock / shares or equity. Convertibles are most often associated with convertible bonds, which allow bond-holders to convert their creditor position to that of an equity holder at an agreed-upon price. Other convertible securities can include notes and preferred shares.

** Net Asset Value / Intrinsic Value – is also referred to as “Private Market Value”. Collectively we define them as the value an informed buyer would pay to purchase assets with similar characteristics. We measure Net Asset Value/Intrinsic Value or Private Market Value by scrutinising on and off balance sheet assets, liabilities, and free cash flow. We also examine valuations and transactions in the public domain to formulate our view of possible future value.

*** Low Debt Levels – can be assessed relative to tangible and/or intangible assets, free cash flow, the industry in which an entity operates, or relative to peers within an industry. 

 Why invest in the Global Shares Fund?

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GLOBAL
Elevation Capital invests in companies around the world.

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PROPRIETARY RESEARCH
We conduct our own independent research.

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CONTRARIAN
The investments in the Fund are often against prevailing sentiments. In short, we seek to “find opportunities others don’t”

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MARGIN OF SAFETY
Buying shares in companies for less than their estimated intrinsic value we believe reduces risk.

 
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COMMON INTEREST
We are in this together – everyone that works at Elevation Capital is invested in our Fund/s. Additionally, there is no performance fee of any form.

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BENCHMARK AGNOSTIC
Our portfolio in no way resembles an index. We are focused on absolute returns not relative returns. Accordingly, the Fund has very high “Active Share.” *

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TRANSPARENT
We have made everything from the underlying investments to the fee structures as transparent as possible.

CASH BALANCE
The fund operates with a net cash balance. Cash provides optionality, ballast against volatility and reduces the risks of permanent loss.

The Fund employs a value-based, opportunistic, and special-situations focused investment approach that is difficult to replicate in the wider Australia / New Zealand funds management industry;

The Fund’s adherence to a “Margin of Safety” investment philosophy and larger than industry average cash balances are not always well understood but again are unique in the wider industry;

The Fund’s opportunity set is different and is not constrained by market capitalisation or geography. Accordingly, the Fund has a very high active share* which indicates very little overlap with reference benchmark indices;

The Fund’s investors are typically using the Fund to fulfill their global / international or alternative investment allocation needs and to supplement low-cost Exchange Traded Fund (ETF) portfolios.

*”Active Share” = the proportion of security holdings that is different from the composition found in the iShares MSCI ACWI ETF Fund.

 

 What are the businesses the Global Shares Fund owns a stake in at present?

 

 ESG

Environmental Social & Governance Policy

 
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What is now a growing trend in the investment world is something that Elevation Capital has always had regard to since inception.

Please find detailed below links to our ESG Policy Statement and how we report the ESG scores of our underlying investments on a monthly basis to our investors.

Global Shares Fund Awards & Nominations

Industry recognition for our results:

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Elevation Capital's “sharp stock picking talents really came to the fore in 2016. Founder and Portfolio Manager Christopher Swasbrook's approach of judiciously selecting companies that have built ‘brand moats' around their businesses and trade at discounts to intrinsic value enabled the firm to deliver a banner year, all the more impressive given the relatively high cash hoard.”
“Also noteworthy are the firm's commitment to transparency and to future fee reductions as assets grow. These characteristics all make Elevation Capital a worthy option for Kiwis looking to diversify their investments overseas.” -
Christopher Douglas, Morningstar's Head of Research

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The Elevation Capital Global Shares Fund was previously called the Elevation Capital Value Fund. The Fund name was changed on 31 July 2019.

Global Shares Fund Monthly, Quarterly, Annual Reports
& Key Fund Offer Documents

How do I invest in (or redeem from) the Global Shares Fund?