Quality and value investing for long-term returns
QV Equities (QVE) is a listed investment company, established in August 2014. It seeks to provide investors with a consistent, sustainable, income stream while also aiming for capital growth over time. QVE invests in companies listed on the Australian Stock Exchange (ASX), outside the S&P/ASX 20 Index.
The QVE portfolio is managed by IML, a multi-award winning, experienced investment company with a track record of successfully managing Australian equities since 1998.
Why focus on the ASX ex-20 segment?
The top 20 stocks on the ASX tend to be the most widely held and researched companies in Australia. IML believes the ex-20 segment offers greater opportunities for above market returns because the listed companies outside the top 20:
- are typically less researched by brokers
- can generate above average long-term earnings growth
- can pay sustainable, regular dividends that can grow over time
In addition to the above, investing in the ex 20 sector offers diversification benefits for investors who are invested in the top 20.
What should you expect when you invest with QVE?
Consistent income, growing over time1 – QVE aims to pay a fully franked dividend, which gives Australian investors additional income through tax offsets or refunds. QVE shareholders received a gross yield of 7.9%2 for financial year 2023, including franking credits.
Portfolio diversification – as QVE invests outside the ASX Top 20, it provides diversification benefits for investors who already invest in the largest Australian companies.
Past performance is not a reliable indicator of future performance.
1 Refers to income. More about QVE’s dividends.
2 Calculated on the closing share price on 30 June, 2023
IML is a quality and value style Australian equities fund manager with a single-minded focus on achieving attractive long-term returns for clients, with lower volatility than the market.
IML uses deep fundamental research to uncover high-quality companies trading at reasonable valuations and has followed this same investment philosophy ever since it was founded, by Anton Tagliaferro in 1998.
IML is a ‘true-to-label’ value manager, with a strong focus on quality. It has identified four clear characteristics that make quality companies stand out:
- A strong competitive advantage
- Recurring earnings
- Capable management
- The ability to grow earnings, and dividends, over time
In addition to this, it only invests in companies that it believes are reasonably priced.
Meet the Managers
The QVE portfolio is managed by Simon Conn and Marc Whittaker.
Simon is a Senior Portfolio Manager at IML, and one of the founding members of IML’s Investment Team. He has co-managed the QVE portfolio since inception in 2014.
Marc joined IML in 2016 and is a small and mid-cap specialist portfolio manager and equity analyst.
Simon and Marc are supported by the fundamental research and analysis of the 11-strong IML investment team of portfolio managers and analysts.
Board of directors
Peter has served as a director of QV Equities since 17 April 2014 and was appointed Chairman on the 14 June 2016. Peter has over 30 years’ experience in the funds management, financial planning and superannuation industry and was the inaugural Managing Director of State Super Financial Services Limited in 1990 until his retirement in 2011. At this time State Super Financial Services Limited had over 45,000 clients throughout Australia and funds under advice in excess of $9.3 billion. During his time with State Super Financial Services Limited, Peter was responsible for the overall management of the company’s activities, including compliance with all legislative requirements and ensuring that the product range remained appropriate to client needs.
Prior to joining State Super Financial Services Limited, Peter was Group Manager Investment Services at Perpetual Funds Management Limited (Perpetual) where he engineered Perpetual’s launch of its house funds into the retail area in 1987, including Perpetual’s highly successful Industrial Share Fund. Peter is a Fellow of The Institute of Chartered Accountants of Australia and holds a Bachelor of Economics from the University of Sydney.
Joining the QVE Board in August 2019, Eamonn has more than 24 years of extensive executive experience in the funds management and financial advisory industries. Over the years, he has gained valuable experience as a Board member, as well as a member of various executive, investment and compliance committees.
He was most recently Chief Operating Officer of Mosaic Portfolio Advisers, the Responsible Entity for a range of managed funds, and then a subsidiary of Shadforth Financial Group (SFG).
Eamonn began his career at PricewaterhouseCoopers (PwC) in Ireland and Jersey, Channel Islands before joining the Australian firm where he worked until 1991. He spent 10 years at Advance Funds Management, a multi-channel distribution business and a subsidiary of St George Bank. At Advance, Eamonn headed Marketing and Product Management and was responsible for a wide range of investment and superannuation products.
He also held the position of Group Executive, Customer Solutions, for ASX-listed Snowball Group, which owned and operated a number of financial advisory dealer groups. He was responsible for all aspects of the offerings to clients including platforms, investment and other products.
Eamonn is qualified as a Chartered Accountant and holds a Graduate Diploma in Applied Finance from FINSIA. Eamonn is also Chairman of the Audit and Risk Committee.
Linda was appointed to the QVE Board in March 2023. Linda has more than 20 years of executive experience in funds management and financial services. Over the years, she has gained valuable experience as a director, as well as a member of investment, financial and non-financial governance committees.
Linda was the Chief Financial Officer (CFO) of Colonial First State (CFS) for 6 years until 2021, one of Australia’s largest retail superannuation and investment platforms and a subsidiary group within Commonwealth Bank of Australia (CBA). She was also a director and committee member of a number of subsidiary companies in CBA. Prior to CFS, Linda spent 6 years as CFO and Company Secretary for Shadforth Financial Group (SFG). While at SFG, Linda was involved from start-up to ASX listing and the eventual sale of the business to Insignia Financial Group.
Linda is a qualified Chartered Accountant, holds an MBA from the Australian Graduate School of Management and a Bachelor of Commerce as well as a Graduate Diploma in Information Systems. She is also a Graduate Member of the Australian Institute of Company Directors (GAICD). Linda is also Chair of the Nomination and Corporate Governance Committee.
Anton was appointed to the QVE Board on 30 April 2014. Anton Tagliaferro served as IML’s Investment Director from when he founded the company in March 1997, until his retirement from IML in March 2023.
Anton has over 30 years’ experience in the financial services industry. In 1981 Anton commenced his professional career with Deloitte Haskins and Sells (Deloitte) in London, where he undertook his professional exams and subsequently gained the status of Chartered Accountant. While at Deloitte, Anton was responsible for working on the audit of many of Deloitte’s prestigious clients such as P&O Cruises Australia (P&O) and Cable & Wireless plc. During the period March 1988 to April 1992, Anton was Group Investment Manager and Equities Manager of Perpetual Trustees Australia Ltd (Perpetual). At Perpetual, Anton was responsible for running Perpetual’s Industrial Share Fund as well as for the management of Perpetual’s investment team. During his time at Perpetual, the Industrial Share Fund continually outperformed in the Australian equities market and was highly rated in Money Management’s annual Australian Equity Manager surveys for four years in a row. In May 1993 Anton moved to County Natwest Investment Management Ltd (County) where he was Director of Industrial Equities and was a senior member of the team responsible for managing County’s $5 billion in Australian equity portfolios. In 1994, Anton moved to BNP Investment Management Pty Ltd (BNP) in the role of Senior Equities Manager where he was responsible for managing all of BNP’s Australian equity portfolios. While Anton was at BNP its equity portfolios were consistently ranked in the top quartile for wholesale equities.
Anton holds a Bachelor of Arts (Honours) in Accountancy from the Metropolitan University in London. Anton is also a member of the Institute of Chartered Accountants and of the Financial Services Institute of Australasia.
Simon was appointed to the QVE Board on 14 June 2016. Simon Conn has served as part IML’s investment team since June 1998 and has been a Senior Portfolio Manager in the small and mid-cap sector since 2002.
Simon is also the lead manager for IML’s Future Leaders, Australian Smaller Companies and Small Caps Funds. Prior to IML, Simon was employed as an investment analyst at QBE Insurance Group in 1995 where he was responsible for assisting in the management of its investment funds across a range of asset classes including equities.
Simon holds a Bachelor of Economics and a Bachelor of Laws from the University of Sydney. Simon is a qualified solicitor and a Fellow of the Financial Services Institute of Australasia.
Keep up to date with the latest news and portfolio insights from QV Equities.