We will manage your money with our own
The Directors of Aspiring are significant investors in the Fund on the same basis as other
unitholders. This commitment is for the lifetime of the Fund. Having our own 'skin in the game'
is the best comfort and assurance we can give our co-investors that we will manage their
What we will invest in
Predominantly, our experience and expertise is in Australasian equities, and it is there that we
expect to invest the bulk of the fund's assets. The reason for this concentration of effort and
assets boils down to maximizing the competitive advantage conferred by that previous experience.
The PIE regime under which the Fund operates enjoys significant tax advantages by investing in the
Australasian equity markets.
Despite this strong bias towards an Australasian focused equity portfolio there will be times when
we assess the risk inherent in maintaining that bias as unacceptably high. Avoiding large losses is
a prerequisite to achieving positive absolute returns. The ability to diversify the Fund’s investments
to include cash or other low risk instruments is necessary to achieve that. For this reason we have
adopted a very broad investment mandate which will allow us to invest in other markets or currencies
and to hedge existing equity or currency exposures by the use of options or derivatives.
We expect there will be long periods where we use this flexibility sparingly, if at all, but the ability
to do so is vital to cope with event-driven crises and to pursue our objective of producing absolute
rather than relative outperformance.
The majority of the Fund's investments will be in listed stocks as liquidity and information flows are
strongest in this category. From time to time we may invest in unlisted companies but in aggregate this
is unlikely to be significant in percentage terms.
The Fund Comes First
Any investment opportunities identified by the directors will first and foremost be for the benefit
of the Fund. This means the Fund will always have priority on the acquisition and disposal of any
assets. This does not mean the directors cannot hold or purchase other assets but that in all cases
the Fund will come first.
Goals and Methods
Our main focus is achieving the highest possible returns for our unit holders. In times when these returns
are diminished by market trends, our focus will be on avoiding real negative returns.
To implement this strategy effectively requires access to company management, customers and competitors. It
also requires access to deal flow through good relationships with key market participants, a decision making
process which enables a quick response to opportunities and the experience to be able to process the available
information in a way which ensures that the correct decisions are made. Our past performance and experience
suggest that we have the skill set to do this successfully. We do not regard ourselves as specialist small cap
investors although that is a market segment where we have frequently found some of our best opportunities.
We do not have a specific growth or value focus. We have lived through periods when we believed the market was
paying an excessive premium for growth and other periods when risk aversion reached such levels those companies
with secure growth opportunities were genuinely cheap.
Focusing on long run absolute returns means we will often invest in stocks which do not have widespread coverage
from broker or institutional analysts. This means that, at any one time, the portfolio is likely to have several
positions with limited liquidity and that the portfolio's performance will have little correlation on a day to day
basis with equity indices.
We do not specifically concentrate the portfolio into a small number of holdings and it is unlikely that any
individual holding would be in excess of 10% of the portfolio. In most instances we intend to be passive investors
but we take our responsibilities as investors seriously and we will be pro-active lobbyists
when we believe a company's board or management are not acting in the best interests of shareholders.