Long-term track record
With strong downside characteristics, delivered by investing in quality businesses with mispriced earnings power
Business owner's mindset
Focusing on stewardship of capital over the long term
Aimed at providing clients with a truly differentiated and complementary portfolio
We approach investing with patience and discipline. The investment philosophy rests on our core conviction that long-term preservation and accumulation of wealth can best be achieved through a combination of attractive valuations and thorough assessment of the quality of the companies in which we invest. We believe:
- Short-term bias in the market leads to potential mispricing.
- Investing with a business owner's mindset is key to success.
- Balancing valuation and quality reduces downside risk.
- Risk is not stock price volatility – volatility equals opportunity.
Focused long-term investment
- Low turnover strategy – a significant proportion of holdings has been held for more than 10 years.
Disciplined, team-based approach
We believe that a team-based approach is superior to the star portfolio manager approach because consensus-based team decisions align with our culture of team-based success and should lower portfolio risk.
Focus on sustainability
- Managing environmental, social, and governance (ESG) risks is an important aspect of safeguarding our clients' investments. We believe that ESG considerations must be part of each and every decision surrounding an investment.
Potential for strong performance in down markets
- Robust portfolio construction seeks to deliver a balance of quality and attractive valuation, which has the potential to perform well in falling markets.
- Focused on avoiding parts of the market that are deemed too risky or richly valued.
- Strategy tends to have high exposure to companies with stable earnings and favourable debt coverage.
Our disciplined, research-driven, and bottom-up, investment process focuses on the fundamental solidity of businesses and assessment of the embedded risks. The strength of the process comes from intensive in-depth fundamental analysis centred on understanding the nature and sustainability of how businesses create value.
Proprietary approach to understanding risk
We see ourselves as business owners who are concerned with the volatility of operating earnings attributable to the invested capital. Fundamental research leading to a clear understanding of the cost of capital for each individual company is core to our investment process.
- Valuation (absolute and relative)
- Quality (stability and return on invested capital (ROIC))
- Growth (multiperiod and relative to history)
- Product and conduct based
Portfolio 30 to 50 companies
- Portfolio managers supported by portfolio risk management & ESG management
The value of the portfolio may fall as well as rise, and you may not receive back the amount invested.
As a class, equities carry higher risks than bonds or money market instruments.
Because the strategy expects to hold a concentrated portfolio of a limited number of securities, the strategy’s risk may be increased because each investment has a greater effect on the strategy’s overall performance. We maintain a diversified portfolio representing a number of different industries, which helps to minimise the impact that any one industry could have on the portfolio.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Strategy from executing advantageous investment decisions in a timely manner and could negatively impact the Strategy’s ability to achieve its investment objective and the value of the Strategy’s investments.
Macquarie Investment Management Europe S.A. (MIMESA) is the investment manager of the Macquarie Global Value Equity Strategy. In Australia, the strategy is distributed by Macquarie Investment Management Global Limited (ABN 90 086 159 060 Australian Financial Services Licence 237843) (MIMGL) and MIMESA. In connection with the marketing and distribution of the strategy to wholesale investors in Australia by MIMESA, MIMESA acts as a corporate authorised representative (Number: 001293347) of Macquarie Specialist Investment Management Limited (ABN 84 086 438 995 AFSL 229916). This document is provided for general information purposes and does not constitute a recommendation to acquire, an invitation to apply for, an offer to apply for or buy, an offer to arrange the issue or sale of, or an offer for issue or sale of, any securities in Australia. This document has been prepared, and is only intended, for ‘wholesale clients’ as defined in section 761G of the Corporations Act and applicable regulations only and not to any other persons. This document does not constitute or involve a recommendation to acquire, an offer or invitation for issue or sale, an offer or invitation to arrange the issue or sale, or an issue or sale, of interests to a ‘retail client’ (as defined in section 761G of the Corporations Act and applicable regulations) in Australia.