Our Investment Philosophy
We are Conservative & Diversified
We are, in the main, conservative investors. We believe that the true value in any investment emerges only with time. We do not believe in speculation; an activity, which, in our view, sees the flight of capital from the impatient to the patient in the long-term. We believe in diversification across asset classes (property, shares, fixed interest, cash, international, alternatives such as gold), markets (Australian, International including China, India and the other emerging economic powerhouses in the world), and the various sectors in the economy.
We Are Long-term Investors
At the heart of our investment philosophy is the simple premise that by owning shares in well managed and profitable companies, the patient investor will over time be rewarded with consistent and sustainable returns (both dividends and capital growth) that will provide a sure and certain long-term hedge against inflation. These returns will generally take the form of highly tax-effective income during the life of the investment; and, strong capital growth, which represents a rise in the intrinsic value of the investors' capital.
We Are Tax Conscious
We are very 'tax-conscious' investors. It is our experience that not enough emphasis is placed on this aspect of portfolio construction and a considerable portion of an investor's profit is unnecessarily depleted by income and capital gains taxes.
We Advocate Leverage Where Appropriate
Where appropriate, we advocate the use of gearing or leverage to amplify the positive effects of capital growth and tax efficiency. Such a strategy will always be underpinned by high quality underlying holdings and any extra risk that the investor is asked to assume is due only to the leverage.
We Use Industrial Strength Research
We provide only researched solutions. Our sources of research are of exceptional pedigree with a proven record of success over the long term. We are therefore able to guarantee investors a disciplined methodology based on sound research, which is one of the prerequisites of building a strong and enduring investment portfolio for the long term.
Our Performance Benchmarks
We benchmark our performance against the underlying index (for example, the ASX 200 Accumulation Index for Australian Share Portfolios & the ASX Listed Property Accumulation Index for the Australian Listed Property Portfolio) over a rolling 5 year period. Where there is leverage involved, the benchmarking period goes up to a rolling 10 year period.
Our Dynamic Portfolio Management
When and where it is considered appropriate and is supported by research, we will make changes to client holdings. Our average portfolio turnover rate for the 9.5 year period to 30 March 2010 has been less than 15% per annum. This accords with our stated philosophy for making investments for the long-term.