Our Approach

Investment
Objective

We aim to generate positive risk-adjusted returns over the investment horizon by investing in structural growth sectors globally, predominantly through global equities. We do not intend to replicate the returns of the MSCI World Index, and the composition of this index doesn’t influence our investment decision. We make our stock decisions based on where we see the opportunity set, and we will allocate currencies as a separate overlay.

Investment
Process

AIM’s research and investment process is focused on identifying structural growth sectors and companies exposed to those sectors, by combining extensive macro and micro research. As part of this process, AIM meets regularly with management teams, travels globally and attends conferences. The research process involves rigorous fundamental analysis covering countries, sectors, companies, supply chains, consumer behaviour, management expertise and the competitive environment. The research process is thorough and is not only focused on opportunities, but also downside risks to our investment thesis.

 

More specifically, we aim to identify the best businesses in the world in structural growth sectors with multiple characteristics, which may include:

 

  • Economic Moat: Businesses that have a product or service with a competitive advantage and in many cases a network effect.
  • Management & Board Expertise: Target world class leaders with capability and track record
  • Structural Tailwinds: Systemic conditions which are likely to be consistent through a range of economic conditions.
  • Financial Discipline & Balance Sheet Strength: Identify businesses with healthy financials, including low levels of debt, strong free cashflow and attractive valuations.

Portfolio
Management

The Portfolio is constructed observing the following guidelines:

 

  • Exposure: The Fund will typically invest 75-100% of its assets at any one time. Whilst the Fund has the potential to increase exposure, this is not expected to be a common occurrence.
  • Cash & Equity Derivatives: Used to maximise portfolio returns, or protection in periods of uncertainty.
  • Sizing of Positions: Positions are regularly reviewed and weightings are adjusted dynamically depending on the relative performance and the opportunity set.
  • Risk Management: The Investment Manager follows several risk management metrics, including concentration risk, correlation, leverage, stop loss indicators and liquidity.
  • Currency Management: The fund is denominated in Australian Dollars. Given the assets of the Fund will be invested globally, primarily in equities, there will be foreign currency exposure. Any changes to exchange rates may affect the Fund when its assets are valued in Australian Dollars. We will seek to manage currency exposure through the combination of cash, foreign exchange trades and currency derivatives.