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Investment Philosophy


About QV Equities

QV Equities Limited (QVE) is a Listed Investment Company established with the primary objective of providing both long term capital growth and income, through a diversified portfolio of ASX listed entities outside of the S&P/ASX 20 Index.

The portfolio is managed by Investors Mutual Limited (IML), a multi award-winning and experienced investment management company, with an excellent track record of successfully managing Australian equities since 1998.

DOWNLOAD the QV Equities Fact Sheet: Click here to Download

Investment Objective

QVE’s investment objective is to provide long-term capital growth over a five-year plus investment horizon through investment in a diversified portfolio of quality, undervalued ASX listed equities and other investment securities. The company aims to generate higher returns than the S&P/ASX 300 Accumulation Index excluding the S&P/ASX20 Accumulation Index (the top 20 stocks).

As well as long term capital growth, IML is focused on long term income growth for the QVE Portfolio, seeking investment opportunities that pay sustainable and growing dividends with active franking credits. IML will manage the QVE Portfolio from an Australian investor’s perspective, with tax being an important consideration in its daily management.

Investment Philosophy

We believe that the Ex 20 Segment provides investors with a much broader and diversified range of investment opportunities. Using Investors Mutual’s extensive research and portfolio management capabilities, QV Equities will focus on high quality stocks outside the top 20 segment of the Australian share market. All portfolio positions are intended to capitalise on IML’s disciplined quality and value based investment approach and intensive research and review process and will seek to invest capital wherever The Manager considers the greatest opportunities exist.

Why focus on the Ex-20 Segment?

Over the last 30 years, increasing numbers of Australians have become owners of shares listed on the Australian sharemarket either directly, or through their Self Managed Superannuation Funds (SMSF). Through a number of mergers and acquisitions the top 20 stocks of the Australian market now represent 62% of the ASX300 Index. As a result, the top 20 stocks now dominate the market and many investors have ended up unwittingly holding a larger proportion of these stocks in their portfolios often ignoring good quality companies outside the top 20.

QVE Factsheet

If an investor where to replicate the ASX top 20’s composition (demonstrated above), their portfolio would be very concentrated by sector, with the Financials sector and Materials sector (BHP, RIO and Newcrest) combined representing almost 70% of holdings. An investment portfolio that is based on stocks outside the Top 20 has a much broader and evenly spread set of sectors. For instance, the largest sector in this universe is less than 19% of the index and the largest stock in the index comprises of only 3% of the index.

QV Equities believes that there are many attractive investment opportunities outside the top 20 which many client portfolios have little or no exposure to, offering valuable diversification benefits. Using Investors Mutual’s extensive research and portfolio management capabilities, QV Equities will focus on these stocks outside the top 20 segment of the Australian share market. These entities are comparatively more diversified both in terms of market capitalisation and industry sector, with the largest individual entity representing less than 3.0% of the Ex-20 Segment and with no individual industry representing over 28% of this segment as at 30 May 2014 (demonstrated above).

While the Ex-20 Segment securities are not as widely held, it is our belief that they can still be leaders in their field with competitive advantages over their peers and strong recurring and predictable earnings offering greater opportunities for above market returns.

Meet the Managers

Anton Tagliaferro, Investment Director and founder of Investors Mutual Limited and Simon Conn, IML Senior Portfolio Manager, are the primary managers of QV Equities portfolio. They are supported by the research and analysis of the Investors Mutual Limited’s investment team (The Manager). Further details of Anton Tagliaferro and Simon Conn, their background and areas of responsibility can be found here.

Investment Managers - QV Equities Ltd

Investment Managers:
Simon Conn &
Anton Tagliaferro