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We offer Multi-Asset solutions for clients looking for portfolio diversification. This includes both tailored diversified portfolios to meet our clients’ specific needs as well as pooled investment vehicles.
We achieve diversified exposure for clients by investing in a selection of growth and defensive asset classes. We understand the importance of asset allocation in driving returns and we aim to add value from both asset allocation and security selection.
Within our Multi-Asset offering, our experienced team of investment professionals manage Australian, Asia ex-Japan and global listed infrastructure equities, REITs, fixed income securities and cash. For our international equities exposure, we select asset managers who are regional specialists with complementary investment styles and philosophies to our own.
Our Multi-Asset capability leverages the experience of our investment teams and is supported by our Asset Allocation committee. This highly experienced committee includes asset class specialists as well as an external macroeconomics expert.
Our investment philosophy
We are value investors
We believe that the price and value of a company are often not the same and deviate over time. ‘Price is what you pay, value is what you get’ best summarises this difference. Greed and fear in markets can drive a wedge between these concepts at the stock level and we seek to take advantage of this behavioural phenomenon by being patient and disciplined. We will only invest in a stock where we assess the discount to intrinsic value is sufficiently attractive.
We are bottom-up stock pickers
At the heart of our value-based investment philosophy is our approach to stock selection, driven by in-depth analysis from our expert team of investment professionals. We use our bottom-up research process to maximise the opportunities to deliver income and long-term capital growth to our investors.
We are often contrarian
In order to beat the market, one must do something different from conventional wisdom. With share prices representing the market consensus, we will often take a contrarian position and invest in companies that we believe are undervalued and will generate the strongest returns for our clients.
In regularly looking at the unloved or unpopular segments of the market, we find there is often a narrative attached as to why these stocks are out of favour. Only by researching these companies on a bottom-up basis (in conjunction with what prevailing valuations imply) can one determine whether the narrative is correct or indeed an opportunity exists.
We invest for the long-term
A key ‘ingredient’ underlying value investing is time. We believe that price and value can diverge by a wide margin over the short-term, whilst over the long-term, they are far more likely to converge. What drives this process? Some like to point to catalysts however in our experience it is more likely than not the passing of time as the ‘darling’ stocks fail to live up to expectations while the ‘value’ parts of the market deliver better results than their share prices were implying.
The holding period for stocks in the portfolio is expected to average around four years.
Our investment approach
Our Multi-Asset capability utilises a traditional multi-asset investment approach. We construct our Strategic Asset Allocation (SAA) benchmark using a traditional mean-variance optimisation process, maintaining a long-term approach to SAA.
Asset class specialists and our external Macroeconomics consultant attend Asset Allocation meetings, chaired by our Chief Investment Officer, to review and assess the relative value of each asset class based on a four-year outlook. The outcome of these meetings is our Tactical Asset Allocation (TAA).
We perform the stock selection in all asset classes except international equities. International equities is allocated on a regional basis. We leverage the investment expertise of our Asia ex-Japan team and then select regional equity specialists with complementary investment styles and philosophies to our own.
The portfolio is constructed within a disciplined risk management framework. The outcome is a portfolio that is diversified across asset classes with the aim to deliver income and long-term capital growth for our clients.
A team of experienced and dedicated investment professionals.