TMS Australian Shares Fund
Investment Managers – Jeremy Hook, Investment Director & Ben Clark, Portfolio Manager.
Investment Objective - The fund’s objective is to generate medium to long term outperformance over the ASX 100 from a concentrated portfolio of Australian shares.
Investment Strategy - The fund invests in companies included or soon to be included in the ASX 100 that offer above-average investment returns through their potential earnings growth. As an Australian share fund the portfolio will be fully invested at all times with a maximum cash level of 10%. The portfolio will generally consist of around 30 stocks with the vast majority held in large, liquid companies.
Investment Approach - TMS’s investment approach is based on two key factors; purchasing companies at what are considered to be a reasonable price that will produce significantly higher earnings per share over a time frame of 3 - 5 years.
Our fundamental belief is that long term share price growth is ultimately driven by consistent earnings growth and our aim is to build a relatively concentrated portfolio of companies that meet this criteria. This relationship can disconnect over shorter term periods as outside volatility and ‘noise’ affects share price movements and the fund will use these opportunities to benefit t from any perceived mis-pricing. Ultimately however our strategy is to exhibit patience and confidence in our decisions to make it through these periods. The portfolio is designed for low to medium levels of turnover, enhancing tax effective outcomes for investors.
Investment Process - The starting point of our analysis is to screen the ASX 100 for industries and sectors that we believe can exhibit reasonable EPS growth over the coming years. During this process we draw on many sources including broking houses, independent forecasting groups, industry sources and in house analysis.
We seek to understand and invest in companies that are market leaders within their respective sectors. This generally produces a list of 50 - 60 stocks which we then analyze in turn in order to determine what we believe a fair price to pay for each would be. This process uses a variety of quantitative and qualitative measures including balance sheet strength, historic profit growth, strength of management and historic earnings multiples. The outcome of this process forms the basis of our portfolio
Minimum Investment- $25,000