Equity Common Fund QE1
Fund objective
The Equity Common Fund QE1 (‘the Fund’) aims to outperform its benchmark, the S&P/ASX 200 Index, over rolling three-year periods.In its management of the Fund, TCFM seeks to:
- generate capital growth over the longer term
- maintain a consistent, conservative investment style
- reduce risk through investing in a diversified portfolio of Australian companies from a range of industry sectors.
Risk and return profile
The price of securities listed on the Australian Stock Exchange can be extremely volatile, and may fall as well as rise. That volatility will be directly reflected in the price of units in this Fund. Investors in this Fund should have a time frame of five or more years.
Investment style
The Fund is managed using a value-based investment style. The selection process for the portfolio involves a comparison of securities against the following criteria:
- a track record of high quality recurring earnings
- the underlying strength to continue and increase those earnings
- reasonable price multiples
- sound debt to equity ratios, and
- quality of management.
Present strategy
We continue to manage the Fund in line with our long established value-based investment philosophy. This places particular emphasis on companies with high quality recurring earnings, fully franked dividend yields and conservative balance sheets. As a result, the Fund tends to hold shares from the Top 100 companies listed on the Australian Stock Exchange, most of which would be well known to investors. The holdings in these shares change over time according to our assessment of their relative value.
