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Australian Equities - Growth Portfolio

The Mainstreet Australian Share Income Model Portfolio is an actively managed concentrated portfolio with an absolute return and a tax-effective income focus. Its principal objective is capital preservation and to achieve an above average market income through a tax-effective income stream via franked dividends and tax-effective deferred distributions.

Portfolio Objective

While this portfolio has an absolute return focus and there is no orientation to a benchmark, for portfolio construction purposes, the objective of this model portfolio is to outperform the S&P/ASX200 Accumulation Index.
Designed for investors with a long-term investment objective who:

  • seek capital growth rather than income.
  • are prepared to accept an overall dividend yield lower than the market average, and;
  • are prepared to accept higher volatility in return for higher growth

Stocks held within the Mainstreet Australian Share Growth Portfolio are ones that have been identified as having an above- average growth profile. It is anticipated the turnover of this model strategy will be low to moderate.

Investment strategy

The stock selection process has a strong quantitative discipline and focuses on buying quality companies at reasonable prices. We define quality companies as having the following five attributes:

  • Strong management
  • Superior industry positioning
  • A sound balance sheet
  • Earnings strength (particularly improving return)
  • A high ‘Safety Margin’ – trading at a discount to its ‘Intrinsic Value’

We are focused on investing in companies that can deliver sustainable above market average capital growth. Where we are satisfied that a company possesses quality characteristics, then it is eligible for inclusion in the portfolio. However, it must also represent value and sit comfortably within our portfolio construction requirements.
The portfolio construction process is also influenced by a top- down economic appraisal and considers the risk characteristics of the portfolio, such as stock and sector correlations.

 

Investor Profile

Mainstreet’s Australian Growth Portfolio (SAIP) is designed for investors with a higher risk appetite, seeking capital growth and who are prepared to accept a lower level of income. Capital preservation is a core focus. This portfolio offers exposure to quality Australian listed companies with higher growth potential and while it has an absolute focus it aims to outperform the S&P/ASX 200 accumulation index.

Overview

  • Model Inception:
  • 01/01/2017
  • Philosophy:
  • Capital
  • preservation with an absolute return focus
  • Investment objective:
  • To deliver
  • higher levels of growth over the investment horizon while outperforming the benchmark
  • Benchmark:
  • S&P/ASX 200 Accumulation
  • Number of Holdings:
  • 10 - 15
  • Investment Horizon:
  • 3 - 5 Years
  • Authorised Investments:
  • ASX listed securities

Cumulative Returns (since inception)