Investment Philosophy | Specialist Fund Managers NZ

OUR INVESTMENT PHILOSOPHY & PROCESS

We believe that an actively managed fund with a concentrated selection of investments can provide investors with better returns than market benchmarks.

- OUR INVESTMENT APPROACH -

SUSTAINABLE BUSINESS MODELS

We take a long-term view, and focus on the underlying value and qualities of our investments.

We target companies with robust and sustainable business models that are trading at a fair price or a price below their actual value.

CONCENTRATED INVESTMENTS

We have a high level of conviction in our investment ideas, which is reflected by larger investments in a smaller number of securities.

Our Funds tend to be more concentrated than other funds in the market, however they always maintain an appropriate level of diversification.

ACTIVE APPROACH

We aim to deliver investment returns above the Fund benchmarks by actively managing investment selection and asset allocation within our Funds.

We focus on assets we believe will outperform and adjust exposure accordingly to prevailing market conditions.

We generally buy securities with the intention of holding them long term and aim not to transact too frequently to keep costs low.
However, when market changes present attractive opportunities, we are able to take advantage of these.

Andrew South, Investment Manager

- OUR INVESTMENT PROCESS -

We do not favour one particular style of investment. Each investment is assessed on its merits and its fit with our investment criteria.

HOW WE CHOOSE INVESTMENTS

We invest in companies we consider to have:

attractive valuations and future cash flows
low volatility of earnings
disciplined capital management
strong leadership and future focused management
governance structure and transparency
competitive advantage in the industry

Our funds are managed in accordance with our Responsible Investing Policy.

ANALYSIS IS OUR STRENGTH

We conduct our own research to understand all aspects of an investment.

We interact closely with companies to understand their business models and financials and conduct scenario analysis and valuation modelling to ensure the investment is right for our portfolios.

PEER REVIEW

All investments are peer reviewed within the investment team. Any investment ideas are challenged and debated to ensure they meet our criteria.

A separate compliance team oversees all investments to ensure that these adhere to each Fund’s investment guidelines.

- RESPONSIBLE INVESTING -

QuayStreet Funds are managed in accordance with our Responsible Investing Policy.

QuayStreet Asset Management Limited also encourages responsible investing through the Socially Responsible Investment Fund.

The Fund currently adheres to a Socially Responsible Investment Policy and screening process which seeks a balance between the financial and the socially responsible performances of an investment.

In February 2017, QuayStreet became a signatory of the Principles for Responsible Investment (PRI), regarded as the world's leading advocate of responsible investment globally.

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- CORPORATE GOVERNANCE -

All money is held in bank accounts controlled by an independent licensed Supervisor, The New Zealand Guardian Trust Company Limited (NZGT). All payments and receipts of monies are made between the client and the Supervisor. All investments are held in the name of the Supervisor via an independent custodian, Citibank N.A.

NZGT has been granted a full licence by the Financial Markets Authority under the Securities Trustees and Statutory Supervisors Act 2011 to act as Supervisor of the funds. Further information on the Supervisor’s licence is publicly available on the Financial Markets Authority website: www.fma.govt.nz
Both the Supervisor and the Custodian are independent of QuayStreet Asset Management Limited.