Forager International Shares Fund - PDS Updates 2025

Initial Communications - sent 3rd April 2025

Dear Investor,

On behalf of the responsible entity of the Forager International Shares Fund ARSN 161 843 778 (Fund), we wanted to let you know about a few proposed changes to the Fund. These changes are not changes to how we manage the Fund’s investments day-to-day, but changes to better reflect what we’ve already been doing. As well as further clarifying the Fund’s investment parameters for existing investors, this will also help future investors better understand the investment strategy.

Here’s a summary of what we are proposing to change:

- New Benchmark: We’re proposing to change the Fund’s benchmark to the MSCI World SMID Index, which is more closely aligned with our focus on small and mid-sized global companies. The Fund’s current exposure to large-cap stocks is 19% and it has averaged 11% over the 11 years since inception. From the effective date of the changes, future performance fees will be calculated with reference to the new benchmark, however the existing performance fee deficit will still need to be recouped before any performance fees are payable.

- Large Cap Exposure Cap: A formal investment constraint will be introduced, limiting large company investments to no more than 20% of the Fund. Again, this reflects how we already invest, with a strong bias towards under-researched and underappreciated smaller businesses. It also ensures consistency with the newly adopted benchmark and prevents style drift that may dilute the Fund’s core investment philosophy.

- Cash Limit Adjustment: We will reduce the maximum cash holding from 30% to 20%, reflecting our preference to be fully invested unless there’s a compelling reason not to be. This is more consistent with the Fund’s historical cash exposure and its focus at the smaller end of the market.

For existing investors like you, nothing changes in terms of how your money is being managed. These refinements are about improving transparency and alignment to the investment strategy, not shifting our approach.

We also believe the changes will make the Fund more appealing to the kind of investors who value the same things you do.

These changes will take effect upon issuance of a new Product Disclosure Statement, which we expect to be released towards the end of May. We will send you communication as this progresses, and let you know if anything changes.

Confirmation of new PDS Communications - sent 2 June 2025

Dear Investor,

On behalf of the Responsible Entity of the Forager International Shares Fund ARSN 161 843 778 (Fund), we wanted to let you know that the intended changes to the Fund communicated to you in April are now in effect. These changes are all about bringing greater clarity to how we manage the Fund and making it easier for investors to contribute regularly.

Here’s a summary of what’s been updated in the Fund's Product Disclosure Statement (PDS):

  • New Benchmark: The Fund now uses the MSCI World SMID Index as its benchmark, better reflecting our focus on global small and mid-sized companies.
  • Investment Limits Introduced:
    • Large companies: Capped at 20% of the Fund’s total assets
    • Cash holdings: Reduced to a maximum of 20%

These updates don’t change how we manage the Fund; they simply better reflect our long-standing investment approach and provide clearer guidance to investors. You can read about these updates in detail in the new Fund PDS

Monthly Savings Plan Renamed

We’ve also renamed our Monthly Savings Plan to the more flexible Recurring Payments.

  • You can now set up regular contributions of $1,000 or more via BPAY
  • Contributions can be made at intervals of your choice: monthly, quarterly, or whenever suits you
  • Importantly, your money is now unitised immediately, rather than waiting for a set date each month

This update gives you more flexibility and ensures your investment is working for you in the Fund straight away.

Contact Us

If you would like to speak with us about any of the above changes, please contact the office on 02 8302 0555 or email admin@foragerfunds.com