While it is an investment truth that higher returns often come with higher risk, not every fund exposes you to the same level of volatility to achieve those returns.

Conviction with Consistency

At Alphinity, we don’t take unnecessary risk to achieve our objectives. Our highly experienced investment team has a proven track record of consistently finding quality, undervalued companies in an earnings upgrade cycle. It’s a skill that’s helped the Alphinity Concentrated Australian Share Fund deliver consistent, repeatable alpha generation over the last 8 years*.

 About the Fund

Investment objective To outperform the benchmark after costs and over rolling five year periods
Benchmark S&P/ASX 200 Accumulation Index
Stocks held in the portfolio 20-35
Minimum investment timeframe At least five years

*As at 30 September 2018. Past performance is not a reliable indicator of future performance.

Conviction with Consistency - Investing the Alphinity Way

In this thought paper, we share some of the techniques we use to construct a high conviction portfolio with a reasonable level of active share (60%) that doesn’t take on unnecessary active risk. This leads to delivering a more consistent level of alpha generation over time. The paper examines:

  • Knowing when to take risk is more important that simply increasing active risk
  • Consistency in alpha generation prevents behavioural biases
  • Techniques in stock picking to ensure a consistent level of alpha generation.

Case Studies - Process in Action

To illustrate our approach to investing, it’s useful to look at the process in action. The below case studies examine:

  1. How avoiding a company can be just as important as uncovering a new opportunity (Telstra)
  2. A company that has been performing strongly for the portfolio (Treasury Wine Estates)

Telstra (ASX: TLS)

Treasury Wine Estates (ASX: TWE)

How to Invest

To find out more about the Alphinity Concentrated Australian Share Fund, contact your local Fidante Partners Business Development Manager or call the Fidante Partners Adviser Services Team on 1800 195 853.

For step by step instructions on how to invest, visit the Apply Now page of our website: