QV Equities Ltd has engaged Investors Mutual Limited ACN 078 030 752 (IML) – a specialist Australian boutique investment manager as the Manager of QV Equities Limited.
An Australian Equities specialist established in 1998, IML has developed a reputation of delivering consistent returns for its clients through the application of a fundamental and value-based approach to investing. IML has a long-term track record of managing Australian equities for private clients, institutional investors and clients of financial advisers and currently has over $5.5 billion in funds under management as at December 2014.
IML’s Investment Philosophy
IML focuses on Quality and Value.
IML believes that the inherent value of any company is best determined by clearly identifying the sustainability, quality and potential growth of each company’s future earnings streams. Their investment philosophy is focused primarily on the longer-term underlying valuations of companies.
IML looks to invest in entities with four clear quality characteristics:
A competitive advantage over their peers,
recurring, predictable earnings,
run by a capable management team,and
the ability to grow over time.
Additionally, from a valuation perspective, IML believes that it is important that such entities be trading at a price below what it believes represents the long-term underlying value of the entity.
IML’s Investment Style
Investors Mutual has a bottom-up approach to identifying, researching and valuing companies to determine the ‘inherent value’ of stocks. The investment style is built upon a systematic and disciplined research process that aims to deliver superior risk-adjusted returns by favouring quality stocks whose share prices are significantly different from their assessed ‘inherent value’.
In their experience, fundamentally sound companies are those that:
- • are well managed;
- • generate high levels of free cash flow; and
- • are in industries with a favourable structure
IML’s philosophy and style favours examining stocks that are either not fully appreciated by the market or are out of favour with the market, which are trading at a discount to their assessment of the “inherent value”. IML’s analysis is then focused upon determining whether the influences depressing the company’s stock price are merely temporary or structural and long term in nature.
At a very fundamental level, IML believes their investment philosophy and style embodies a common sense approach to investing.
For information regarding IML’s investment philosophy and style, or for information regarding its suite of managed funds please visit their website: iml.com.au