Investment Approach
-
1
Quantitative
- Filter for ROE > 15% over 3 consecutive years;
- Market cap > $1bn MSCI Developed Markets Countries
- ESG negative screens
Establish universe
Core ~ 900
Select “
SMID ~ 700 -
2
Prioritization
- Quality score applied
- Measures profitability, growth and financial strength
- Unbiased, disciplined, idea generation
Idea generation
~ 450
“
~ 350 -
3
Qualitative
- Management
- Franchise Strength
- Profitability
- Financial Strength
- Business Drivers
- ESG
Fundamental test:
pass or fail
Quality test
~ 250
“
~ 150 -
4
Valuation
- Identify mispriced stocks
- Disconnection between quality & value
Holdings
90 ~ 100
30 ~ 50
35 ~ 55 -
5
Portfolio Construction
- Identifying optimal blend across the entire ‘Quality’ spectrum
- No regional/ sector limits
- Modest turnover
- Target consistent outcomes
- Resilient in falling markets
- Attain strong batting average
- Target higher portfolio ESG rating vs Index
ESG Philosophy
Bell Asset Management (BAM) employs a robust and ongoing commitment towards integrating Environmental, Social and Governance (ESG) issues within our investment process. We employ a disciplined investment framework combined with Stewardship and ESG specific activities including ESG screening, ESG analysis, active engagement and proxy voting with companies in all of our portfolios.
We believe that integrating ESG factors into our investment process will deliver superior long term returns to our clients. We believe that as stewards of our client’s capital, active ownership and engagement is in the best interests of our investors.
The 2020 PRI Assessment report and Transparency report is available, please contact the Institutional client services team distribution@bellasset.com.au
Documents below are available for download and can also be found on our Disclosure page: