About the Fortis WA Equities Fund
Fortis Capital Management Pty Ltd ("Fortis") offers units in the
Fortis WA Equities Fund (The Fund).
This boutique value-focussed fund is designed for a small
specialised group of investors, with a focus on Australian
equities.
The trust will seek to leverage the opportunities which exist in
Australia and specifically Western Australia mainly through a
portfolio of All Ordinaries Index shares.
Fortis, the investment manager and trustee of the Fund, will
manage the portfolio. Fortis is privately owned and
controlled by the Chief Investment Officer.
What is the investment philosophy of the fund?
The Benjamin Graham / Warren Buffet approach of "value-investing"
best characterises the investment style of the Fund. The Fund will
focus on research and company fundamentals. The manager's
investment philosophy is founded upon on-going fundamental research
on Australian listed companies (with a WA focus). A number of
quantitative filters on company fundamentals will be employed to
identify intrinsic value and invest where a "Margin of
Safety" exists.
How is the fund managed?
The fund will be actively managed using both top-down industry
and geographical segmentation and bottom-up fundamental
analysis. The overall style can be categorised as
Value-Investing with risk-weighted exposure to 'growth at a
reasonable price'. The manager will filter the All Ordinaries
stocks, by macro-economic factors relating to industry and
geography, and by company-specific factors (i.e. return on equity,
core franchise, earnings growth, management and balance sheet).
Price considerations will then be taken into account, including
valuation, industry comparisons and modelling. All inputs are
internally generated. Portfolio construction has broad guidelines
to provide flexibility and focus the Fund Manager on enhancing
investor returns rather than meeting strict rules.
The portfolio will incorporate 10 to 25 stocks. Turnover is
expected to be low, with total portfolio turnover not expected to
exceed 35% per annum.
"The basic ideas of investing are to look at stocks as
businesses, use the market's fluctuations to your advantage, and
seek a margin of safety. That's what Ben Graham taught
us. A hundred years from now they will still be the cornerstones of
investing"
Warren Buffet