Message from Sophia Rahmani, CEO & MD, Maple-Brown Abbott - COVID-19 (Coronavirus)
Message from Sophia Rahmani, CEO & MD, Maple-Brown Abbott - COVID-19 (Coronavirus)

Our investment philosophy

Our investment capability is the foundation on which Maple-Brown Abbott was initially established in 1984. Our investment philosophy is based on the following key principles:

We are value investors.

We believe stock valuations are driven by the financial performance of the underlying business. By always taking a long-term view, we can use periods of short-term pessimism to our advantage and buy good businesses at attractive prices.

We are bottom-up stock pickers.

We use our in-depth internal research process to identify those good Australian companies that we believe offer the best long-term risk/return opportunity in the market.

We invest for the long-term.

We look to hold a stock for at least four years, as we believe this allows the company’s true intrinsic value to be realised based on its underlying earnings, cash flows and dividends.

We are often contrarian.

With share prices representing the market consensus, we will often move early and against the crowd to invest in undervalued companies that we believe will generate strong investment performance.

Our investment approach

Our investment philosophy is value-orientated and applied both at the asset allocation level and at the stock selection level.

Our investment process is designed to facilitate the key elements of our investment philosophy. The primary driver of portfolio performance over time will be the contribution made from stock selection. Our investment process is focused on maximising the opportunity set provided from our bottom up research process. This is emphasised through the fact that all portfolio managers are also analysts who are responsible for various stocks or sectors.

Our clear, disciplined investment process has proven to provide good returns over the longer term. We fully integrate a strong quantitative discipline with experienced and qualitative judgement making for focused research and effective decision making.

We construct our Strategic Asset Allocation (SAA) benchmark using a traditional mean-variance optimisation process, maintaining a long-term approach to SAA.