Working with you to achieve your goals

In collaboration with clients throughout Australia, we forge strong partnerships to craft and execute tailored long term investment programmes, drawing upon our extensive expertise across international markets and diverse asset classes.

We work closely with each client to establish its long-term investment goals, and we then design a programme that we believe best meets those needs. Customisation extends beyond investing. We are highly experienced in reporting and governance and other related areas.

Our Investment Philosophy

Our guiding principle is centred on the preservation of capital's real value and the provision of sustainable returns for beneficiaries over the long haul.

Hugging a benchmark and relying on a model based on a few decades of correlations is not good enough but, sadly, that is the essence of the current mainstream approach.

There are 4 distinctive elements to our approach:

  • We strongly believe in researching and finding investments that others focused on short term benchmarking simply cannot.

    We pursue fundamental investment research across asset groups where we believe changes or inefficiencies in economies and markets provide investment opportunities.

    We then find the most appropriate way to pursue these in specific investments in a portfolio.

  • Effective risk management is a mindset, embedded in our culture and investment philosophy based on frontline experience. It is not simply a volatility or correlation factor, as so often expressed.

    We look for where we might be wrong, and how a portfolio might behave in a range of different circumstances. We are always ready to adapt to change.

  • We believe that, in most circumstances, active skill-based management leads to superior returns.

    We build good working relationships and interact regularly with managers. Having worked inside and alongside countless fund management teams over many years internationally, we understand how it works behind the external veneer.

    We look for goal alignment: managers with their own capital at risk on the same terms as us, seeking capital gains and not growth in funds under management.

    We look for managers that restrict their focus to areas where they have an edge and strong processes.

    We expect our managers to behave like business owners, with deep fundamental research and understanding of a business and industry giving them credibility with the senior management teams of those companies.

  • We believe that owning equity in productive businesses is the best way for us to achieve our investment objective.

    However, we recognise the cyclical nature of markets and we also invest in assets where returns are not dependent on the broader equity market cycle.

    Alongside this, we diversify portfolios across strategy, geography and sector.

    This means that there are several independent paths to meeting our return target.

Why outsource?

For many institutions, in-house investment management is under-resourced.

  • The challenging landscape of the global economy and financial markets requires experienced professionals with a singular focus on investing

  • Investing is not a part-time job. Maintaining fiduciary responsibility has become increasingly difficult

  • We provide careful, disciplined stewardship – every day of the week


What drives our thinking?

Over the years, we have seen first-hand the good and the bad of investing styles. A few stand out.

“The most important distinction in the investment world does not separate individuals and institutions; the most important distinction divides those investors with the ability to make high quality active management decisions from those investors without active management expertise.

Few institutions and even fewer individuals exhibit the ability and commit the resources to produce risk-adjusted excess returns.”

David F. Swensen, Yale Investment Office
— Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment
“You will occasionally come across people who are exceptionally talented ... you can sense that their brain processor is just going faster. If you can collaborate with them, something great is going to happen, and your life will be very interesting.”

Eric Schmidt, Former CEO of Google
“Our biggest risk is clearly inflation. Most endowments think they are conservative and invest in bonds. The fact is that they get wiped out by inflation. We own real assets. It is a philosophical position.”

Danny Truell, CIO of Wellcome Trust, the world’s third-largest charitable foundation
— Uncovering little investment gems among the shrunken heads, Financial Times 13 April 2014
“One secret in Yale’s success has been David Swensen’s ability to engage the committee in governance—and not in investment management. Contributing factors include: selection of committee members who are experienced, hard-working, and personally agreeable; extensive documentation of the due diligence devoted to preparing each investment decision; and full agreement on the evidence and reasoning behind the policy framework within which individual investment decisions will be made.”

David F. Swensen, Yale Investment Office
— Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment
There are so many opportunities. There’s really not any more secrets anymore. It’s very hard.

Venture capital was the secret of the endowments and the foundations. It was hard to access. People could choose their investors. That whole industry has changed beyond recognition today, but it will bring new opportunities.

“I think times like this is when great talent tends to spin out as well from larger shops. It’s very easy to say, oh, well, interest rates are higher, there’s going to be no opportunities.

It’s going to be harder. I think you’ve got to be more flexible. You’ve got to be nimble. You’ve got to be open-minded.

For us, it’s about backing really smart people, and that’s not going away anytime soon.”

Sandra Robertson, CIO, Oxford University Endowment Management
— Moneymaze, January 2024
“The fifth secret may well be the most important: personal respect and affection. Visitors to Yale’s Investments Office are invariably impressed by the open architecture and informal “happy ship” climate that is almost as obvious as the disciplined intensity with which the staff work at their tasks and responsibilities. Positive professionals perform at their peak productivity and teams get better with low turnover.”

David F. Swensen, Yale Investment Office
— Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment
“What you’ve seen in a lot of the investment industry, particularly in institutions now, is people talk about risk in a different way. They talk about relative risk, not absolute risk. They talk about risk relative to a benchmark as being risk.

So for us, risk was the absolute loss of capital at that time because a foundation, you didn’t have money coming in. It wasn’t like an endowment. It wasn’t like a pension fund. So the assets we had were very precious.”

Sandra Robertson, CIO, Oxford University Endowment Management
— Moneymaze, January 2024
“One thing I have observed is the obsession of market commentators, investors and advisers with macroeconomics, interest rates, quantitative easing, asset allocation, regional geographic allocation, currencies, developed markets versus emerging markets — whereas they almost never talk about investing in good companies.”

Terry Smith, Fundsmith CIO
— Terry Smith: What I have learnt at Fundsmith, Financial Times . 20 November 2015
Most investors are “over diversified”. Despite its size, the Wellcome Trust’s approach is to focus on 95 “relationships”. These relationships account for 85 per cent of the portfolio.

Mr Truell is happy to time the markets to rejig these relationships; he sold all the trust’s mainstream commercial property before the financial crisis and raised its equity exposure from 58 to 69 per cent between 2008 and 2011. But he values the trust’s reputation as a long-term investor.

“Over 80 of our relationships are more than five years old. We don’t have a headwind from trading costs,” he says.

Danny Truell, CIO of Wellcome Trust, the world’s third-largest charitable foundation
— Uncovering little investment gems among the shrunken heads, Financial Times 13 April 2014
“The first one was the governance structure is really important. Empowering the investment team to make decisions was really crucial to the success of Wellcome. And having an investment committee who really understood investing was really, really important.

The next thing was I think this focus on absolute return and not being constrained by traditional asset allocation models and this whole concept of something’s more risky because you deviate from a benchmark. So they were really important lessons I think
really that I took with me.”

Sandra Robertson, CIO, Oxford University Endowment Management
— Moneymaze, January 2024
Smith discusses investing lessons he learnt from the annual men’s multiple-stage bicycle race, “Tour de France”.

According to Smith, investors have the knack of examining their portfolio performance in every reporting period, as often as every quarter, and sometimes exiting the stocks which underperform.

He says it’s as pointless to expect an investment strategy or a fund manager to outperform the market in all reporting periods and varying market conditions as expecting to find a rider who can win every stage of the Tour.

”As the old saying goes, there are only two types of investor: those who can’t time the markets, and those who don’t know they can’t time the markets,” he says.

According to Smith, investment is a test of the endurance of investors and the winners are the ones who find a good strategy or fund and stick with it.

Terry Smith, Fundsmith CIO
— Investing For Growth
“If you are going to use probability to model a financial market, then you had better use the right kind of probability. Real markets are wild. Their price fluctuations can be hair-raising-far greater and more damaging than the mild variations of orthodox finance.

That means that individual stocks and currencies are riskier than normally assumed. It means that stock portfolios are being put together incorrectly; far from managing risk, they may be magnifying it. It means that some trading strategies are misguided, and options mis-priced.

Anywhere the bell-curve assumption enters the financial calculations, an error can come out.”

― Benoît B. Mandelbrot, Sterling Professor of Mathematical Sciences, Yale
— The (Mis)Behavior of Markets
“Some economists, when thinking about long memory, are concerned that it undercuts the Efficient Market Hypothesis that prices fully reflect all relevant information; that the random walk is the best metaphor to describe such markets; and that you cannot beat such an unpredictable market. Well, the Efficient Market Hypothesis is no more than that, a hypothesis. Many a grand theory has died under the onslaught of real data.”

Benoît B. Mandelbrot, Sterling Professor of Mathematical Sciences, Yale
— The (Mis)Behavior of Markets