The aim of the portfolio is to outperform the S&P/ASX 200 (TR) Index over rolling 5-year periods. The portfolio will also aim to deliver above market dividend income and lower volatility than the S&P/ASX 200 (TR) Index.
The investment strategy underlying this portfolio is founded on the belief that:
- stocks with above-average dividend yields tend to outperform in the long term, provided that a filter for earnings quality is applied
- low volatility stocks tend to outperform in the long term, especially if a valuation measure is added to the stock selection process.
The investment process starts with taking the constituents of the investment universe, the S&P/ASX200, and applying quantitative filters to screen out companies which have high volatility or low dividend yield or low earnings quality. The objective is not to maximise returns, but rather to eliminate high risk stocks.
The portfolio is designed for investors who:
- are seeking exposure to a concentrated core portfolio of Australian equities with returns comprising of both capital appreciation and income;
- accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and accept that capital preservation is not guaranteed; and
- are prepared to invest for the minimum investment timeframe of five years.
For more information, please contact firstname.lastname@example.org
Arminius Capital ALCE Strategy December 2020 Performance Report
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