Alphinity Concentrated Australian Share Fund
About this Fund
|FUND MANAGER||Alphinity Investment Management|
|ASSET CLASS||AUSTRALIAN EQUITIES|
|INVESTMENT STYLE||The Fund holds a diversified portfolio of Australian stocks listed on the ASX.|
|INVESTMENT PROFILE||The Fund seeks to outperform the Benchmark after costs over rolling five-year periods|
|BENCHMARK||S&P/ASX 200 Accumulation Index|
|FUND SIZE||S&P/ASX 200 Accumulation Index|
|NO. OF HOLDINGS||20-35|
|FEES||0.80% p.a. of the net asset value of the Fund|
Benefits of investing in the Alphinity Concentrated Australian Share Fund
The Fund is intended to be suitable for investors who are happy to invest for at least five years, are seeking high levels of return and are comfortable with high volatility, including the possibility of periods of negative returns.
About the Fund
A more targeted version of the Australian Share Fund, holding our highest conviction 20-35 stocks.
The Alphinity Concentrated Australian Share Fund holds a diversified portfolio of Australian stocks listed on the ASX.
Our investment approach is based on a combination of strong fundamental bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of that expected by the market. The combined output of this fundamental and quantitative research is brought together by our Composite Research Model (CRM).
Alphinity uses a number of tools to ensure a very targeted high conviction fund, ensuring first that the shares clear all the hurdles to be included as positive positions in the Alphinity Australian Share Fund and secondly that they score towards the top of the CRM.
Alphinity - the investment manager
Alphinity is an equities investment manager established in 2010. It is majority owned by its four founding principals, who have worked together since the early 2000s.
Alphinity aims to deliver consistent outperformance for its clients by investing in quality, undervalued companies which its research concludes are in, or about to enter, a period of earnings upgrades. Its process for identifying such companies includes a distinctive combination of fundamental analysis and quantitative inputs.
How we invest your money
Alphinity is an active, core Australian equities manager that believes a company's earnings ultimately will drive its share price over time. Alphinity believe the market is typically inefficient at accurately pricing future consequences of new information that will affect company earnings, therefore clearly identifiable characteristics exist for companies whose earnings ability is likely to be under (or over) estimated by the market, allowing an investor to exploit this inefficiency to create outperformance.
Alphinity's investment approach is based on a combination of strong fundamental bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of those expected by the market. The combined output of this fundamental and quantitative research is brought together in Alphinity's proprietary Composite Research Model (CRM).
The CRM is used throughout the investment process and enables the investment team to objectively compare companies across, as well as within, sectors in addition to identifying research priorities, providing both buy' and sell' signals and helping to construct portfolios that aim to offer a high level of return for a given level of risk.
Alphinity uses a number of tools to design a high conviction concentrated fund. Shares are selected through the investment process outlined above and that score towards the top of the CRM.
Investment universe and portfolio construction
The investment universe is comprised of Australian stocks listed on the ASX. The final portfolio will be made up of between 20 and 35 stocks depending on their CRM score and the fundamental analysis by the investment team. Portfolio construction guidelines limit the Fund's exposure to any one company or sector.
The Fund can invest in listed equity securities, chess depository interests or hybrid equity securities such as convertible notes, redeemable preference shares, partly paid shares and unlisted securities provided these are expected to list within 6 months of purchase. It can also enter into underwriting agreements relating to shares able to be held by the Fund provided there are sufficient liquid assets in the Fund to cover such obligations. Alphinity does not intend to gear the Fund through the use of derivatives or short sell. The Fund aims to be fully invested.
Strategic allocation ranges