IFM Strategic Australian Equities Fund

Strategic Australian Equities is an active Australian equities strategy that comprises a concentrated, long-term “buy and hold” benchmark unaware portfolio of high-quality businesses that we expect to perform well over the long term. The IFM Strategic Australian Equities Fund was launched in July 2008, while the investment process has an excellent track record dating back to 2005.

Investment approach

What is RoE Impulse?

A proprietary measure developed by IFM to enable identification of companies that continually demonstrate a superior ability to reinvest new capital effectively.

Our research shows that companies with superior RoE Impulse scores in the long term outperform other companies.

IFM’s Strategic Australian Equities investment approach is focused on identifying high quality companies with an excellent track record of reinvesting capital. We identify such companies as those who have a superior RoE Impulse (see box, right).

Our confidence and the corresponding weighting in the portfolio also includes a qualitative assessment of a number of factors, including; : the strength of their corporate governance, sustainability of competitive advantage, and balance sheet strength.

The strategy’s investment style results in a concentrated high conviction portfolio that is index agnostic and has a long-term focus. This also results in low portfolio turnover and minimises associated transaction costs.

Key features of the strategy are as follows:

  • Patient and strategic approach to investment with long-term investment horizon
  • Highly differentiated investment approach and portfolio
  • Disciplined and consistent investment process
  • Embedded sustainable and responsible investment considerations
  • Efficient tax outcomes for investors.

Investment process

The investment process combines RoE Impulse with qualitative techniques to construct a concentrated, long-term portfolio of companies that have demonstrated a superior ability to reinvest new capital efficiently.

Identify investible companies

Using proprietary analysis we identify ASX listed companies with a superior RoE Impulse, an approach that recognises that it takes time for any new capital invested to generate returns.

Apply qualitative overlay

Internal fundamental bottom-up stock research is an important part of the Strategic Australian Equities investment process. We apply qualitative due diligence to ensure that we thoroughly understand the businesses in which we invest and that we are confident the business is being run in a sustainable manner for the long term.

Portfolio Construction

Portfolio weights are determined by a disciplined scoring process reflects our confidence in each company .

Experienced investment team

Clyde Haldane leads IFM’s Strategic Australian Equities strategy, supported by an experienced and stable team. The key investment professionals that manage the Strategic Australian Equities strategy are:

Position Responsibilities Investment experience
Clyde Haldane Executive Director Responsible for developing and managing IFM’s active listed Australia equities strategy 25 years
Davina Machin Investment Director Company research, analysis and portfolio management of IFM’s active equities strategy 17 years
Travis Hooper Investment Associate Analysis and management of IFM’s Listed Equities mandates 11 years

Responsible investment considerations

IFM takes its obligations towards responsible investment and ESG seriously. This is demonstrated through our recognition of ESG issues across our investment process, our voting record and our Proxy Engagement Committee (PEC).

We recognise that responsible investment considerations are a vital component of running a sustainable business and therefore these are an explicit component within our Strategic Australian Equities investment process.

Clyde Haldane, IFM’s Executive Director Listed Equities (Active) heads our Proxy and Engagement Committee, which actively vote all proxies and directly engages with investee companies on a range of responsible investment issues.

Learn more about IFM’s responsible investment in Listed Equities »