We employ a rigorous research process to identify investments that meet our strict criteria. While many investments may be regarded as being suitable for inclusion in your portfolio, it is important not to purchase them at inflated prices. We employ a disciplined valuation approach to ensure investments are acquired at attractive prices when compared to other opportunities on a risk adjusted basis.
We also believe markets are not fully efficient and there will be times when an investment’s market price will not reflect what we believe to be the true underlying value. Such situations provide excellent opportunities to build quality long-term portfolio positions.
Our value investment approach is applied at both the asset allocation and security level.
We believe the underlying value of an investment is best determined by quantifying and valuing the sustainability, quality and growth potential of its future earnings stream. The earnings stream is important because it enables both the payment of income to investors and reinvestment into the business for future growth.
We are attracted to investments with quality characteristics including:
The macro-economic environment is also an important focus in our investment decision making process. We also consider:
Our in-house Investment Committee comprises a panel of experienced professionals responsible for analysing and recommending investments for our Approved Securities and Products List.
Investment opportunities are sourced from our investment analyst, advisers, fund managers, stockbrokers, and public companies. We undertake comprehensive research utilising internal expertise, external consultants, analysts, and research houses to ensure the appropriateness of the advice we provide you.
The Investment Committee also produces asset allocation guidelines based on economic and investment data. All decisions made regarding securities and asset class exposures must be approved by a majority vote from the Investment Committee.
We have developed relationships with key industry experts to provide guidance on a broad range of business, investment and macroeconomic issues. These people provide our Investment Committee with commentary on what they see are the key issues facing businesses and the economy.
Investment Portfolio Management