Constraint Restricts Reward From Opportunity
Monash Investors has more freedom to choose and act.
That’s just smarter.
Unlike most benchmark aware and index tracking funds, Monash Investors has fewer portfolio constraints. Having a more flexible mindset, helps to increase the likelihood of achieving our performance objectives, when compared to those fund managers who are bound by rules that make no sense from an investment perspective.
As such, Monash Investors manages equities more flexibly in a number of ways.
| Monash Investors Approach | Description | Rationale |
|---|---|---|
| Benchmark unaware | Not concerned with a stock's weighting in an index when looking to buy a stock | Buy only compelling stocks that offer considerable upside Click here to read our blog on this topic |
| High return hurdle requirement | Primarily looking for compelling stocks that offer substantial pay offs to our entry price | Having a high hurdle rate results in a more concentrated portfolio of only the most compelling opportunities. If investment opportunities cannot be found that meet the investment manager's requirement, we preserve capital in cash to avoid losses |
| Style agnostic | Use all the key investment styles include value, growth and discounted cash flow | Can capture more value over the investment cycle rather than just waiting for one style to be in favour over another when value is outperforming growth or vice versa |
| Stock size agnostic | Indifferent to a stock's market capitalization when making an investment | Can go to where the best value is without being constrained by a stocks size. Sometimes these opportunities will be in small-capitalised stocks, whilst at other times they may be in mid to cap large stocks |
| Long and Short | Can make money by buying stocks that we believe will go up in value, and can make money by selling stocks that we believe will go down in value | Having two sources of return generation, assists in achieving our objectives and helps to lower overall portfolio risk |
| Absolute return and capital preservation focus | Take a multi strategy approach to achieving our absolute return targets | Belief is that more wealth can be created by achieving high rates of ‘absolute returns’ and by not losing our investors capital, over a full market cycle |
All investments carry risk. Whilst it is not possible to identify every risk relevant to your investment, we have provided details of the risks that may affect your investment is in the Fund’s product disclosure statement (PDS).
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