Wealth building
Build long-term wealth with strategies for investing, saving and managing your cash flow.
About Investment Management
A boutique investment manager
We are a boutique investment manager providing innovative investment solutions for individuals, families and superannuation funds that are seeking to protect their capital, build their wealth and provide an ongoing income stream to live on.
We specialise in the active management of equity, property, fixed income, and managed fund portfolios that can be tailored to individual circumstances.
We follow an active high-conviction investing philosophy combined with a bottom-up growth investment process. Our investment management team applies growth, quality, and valuation tests to companies while positioning the investment style towards quality businesses that display sound growth opportunities.
We focus on the long-term prospects of the businesses but put a high emphasis on the macroeconomic conditions to inform our investment decisions. Our experienced investment team have developed a proprietary approach to scouring the markets for the best investment opportunities, with the aim of providing investors with consistently superior investment returns.
Active high-conviction boutique investment management
Our investment philosophy
We first and foremost seek quality businesses with strong fundamentals that are riding a long-term secular tailwind. We take an ownership approach to investing, believing that we are part owners in each business that we buy shares in on behalf of clients. We apply rigorous macroeconomic analysis and momentum analysis to assist in deciding what to buy and when.
We define a quality business as one with a proven product or service and a business model that results in strong cash flows being generated that can be reinvested in the business at high rates of return. This type of business creates a compounding machine that can grow shareholder wealth for many years.
Once we have identified a quality business, our entry price must be at or below our estimate of fair value. We primarily estimate the future cash flows of the business and discount these back to a present value using a discount rate. This is an important part of our investment philosophy, as a good business does not automatically equal a good investment if too high a price is paid.
Our portfolios typically own between 20 and 45 investments. We believe this provides investors with sufficient diversity to reduce over-exposure to any one company, whilst also remaining sufficiently concentrated to experience the benefits of outperformance of individual companies.
Our investment process
We employ proprietary screening tools to uncover companies that exhibit the desired characteristics of businesses that we believe will outperform the market over time. These characteristics typically include:
•A strong competitive advantage, with high barriers to entry protecting their position in the market
•A proven track record of earnings growth
•A high return on invested capital
•A strong balance sheet with little to no debt
•A competent and approachable management team with a demonstrable track record, and alignment with shareholders' interests
•A share price that has been increasing in recent months
Our research team prepares extensive financial models and valuations to determine an estimate of the future earnings power of the business based on realistic assumptions. We compare our valuation to current market prices to ascertain whether the company is fairly priced, undervalued or overvalued.
Wherever possible, we aim to meet with the management of the company to gain a deeper understanding of the business. Our team are in regular contact with the senior management of many companies we research as part of our ongoing investment process. We believe management contact is central to truly understanding a business. We gravitate towards founder-led management, as this leads to longevity of service and a high level of alignment with shareholders' interests.
For the Executive Series, we search the market for fund managers who have a proven investment approach and a history of outperforming their benchmark over an extended period of time and whose investment philosophy is similar to ours.
An important part of our process is understanding the macro environment. We may identify a company that meets many or most of the above criteria, but if we think the environment in which it operates may be providing short-term headwinds, we will keep the idea on the sidelines until the environment improves.
Macroeconomic Analysis
- Informs sector positioning
- We rotate with the business cycle
Industry Structure
- Few competitors
- Experiencing tailwinds
- Market leader
Earnings Strength
- Growing earnings
- High margins
- High return on equity
- Strong cash conversion
Balance Sheet Strength
- Low debt
- Increasing equity over time
- Regular, growing dividends
- Funded by cash flows
Management Quality
- Prefer founder-led
- Consistent, logical, transparent
- Prudent capital allocation
- Long tenure
- Ownership in the company
- Candour in reporting
- Strong governance
Valuation
- Reasonable price-to-earnings ratio
- Good growth prospects
- Discounted cash flow modelling
- Trades at a fair valuation
Momentum Analysis
- Informs entry and exit timing
- Emphasis is on share-price moving averages
Our portfolios
We understand that investors are at different stages of life and have very different investment requirements. We offer a wide range of portfolios to ensure that there is a solution that meets the needs of most investors. Our portfolios are structured into three series, the Focus Series, the Prosperity Series, and the Executive Series, each with different characteristics.
Focus series
Australian Equities Portfolio
Emerging Companies Portfolio
Global Equities Portfolio
Property Securities Portfolio
Fixed Interest Fund
Prosperity series
Prosperity Series Capital Stable Portfolio
Prosperity Series Conservative Portfolio
Prosperity Series Balanced Portfolio
Prosperity Series Growth Portfolio
Prosperity Series High Growth Portfolio
Executive series
Executive Series Capital Stable Portfolio
Executive Series Conservative Portfolio
Executive Series Balanced Portfolio
Executive Series Growth Portfolio
Executive Series High Growth Portfolio
All investment options are available in both Investment and Superannuation environments. The portfolios are offered on a variety of platforms and are offered as either a separately managed account (SMA) or managed discretionary account (MDA), depending on the platform.
How to invest
For more information on how to invest, visit the Invest With Us page and speak to one of our advisers today.
Enquire today to see how we can help.