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Portfolio · Equities

Australian Quality Equities Portfolio

Established 2023 · Long-Term Hold

Holdings

A concentrated book of listed Australian businesses, selected on durable earnings and balance sheet strength. Established 2023.

Limits

Single positions are capped at 3 per cent of the book. There are no margin facilities and no borrowings against the portfolio.

Selection

A holding must be describable in one paragraph and produce visible cash flow. The balance sheet must fund the business without recourse to capital markets.

A purchase requires the price to sit below the office's estimate of intrinsic value.

Review

Each position carries a written thesis, reviewed at least annually. The test is whether the facts the thesis depended on are still true.

Risks

The Australian index is weighted towards banks and materials. The book does not mirror index weights, so it will not move with them.

Elsewhere in the Portfolio

Other work in the portfolio

Two further positions that illustrate how the office allocates capital across asset classes.

Position Facts

The position at a glance

3%
Single position cap
Nil
Margin or borrowings
12+
Months of liquidity held
Annual
Thesis review
Questions on This Position

Questions about this position

Questions asked about this position.

Fewer than an index fund. Every holding must clear the same cash flow and valuation tests; capital stays in cash rather than funding a name that cannot be described in a paragraph.

The number of holdings is determined by how many businesses clear the screen, not by a diversification target.

Size reflects the durability of cash flows and the gap between price and estimated value, capped at 3% of the book.

The cap applies regardless of the size of the opportunity.

No. There is no tactical overlay, no hedging and no trading around core holdings. Turnover happens when a thesis fails, when price moves far beyond our estimate of value, or when a better-understood opportunity requires the capital.

Transaction costs and tax are measured over the intended holding period.

Positions are reviewed annually against the thesis recorded at purchase.

Discuss a Position

Ask about the equity book

Researchers, advisers and analysts sometimes want to understand how the screen is applied. A written note describing what you are working on is how these conversations start.

  • Substantive enquiries are answered within two business days.
  • Commercial information is treated as confidential.

See how the rest of the portfolio is built

This position is one of six that illustrate the way the office allocates capital.