Investment Strategy

Key Strategies

The Hunter Hall Funds invest in quality growth stocks at prices that are substantially  less than Hunter Hall’s assessment of their intrinsic value. The Hunter Hall Value Growth Trust (VGT) and Hunter Hall Global Deep Green Trust (GDG) invest globally. The Hunter Hall Global Ethical Trust (GET) invests internationally (excludes Australia and New Zealand). The Hunter Hall Australian Value Trust (AVT) invests domestically (Australia and New Zealand).

Hunter Hall implements the investment strategy of the Funds through a value growth investment methodology based on the fundamental analysis of individual stocks.

The are two major components of the value growth investment methodology:

• identify quality stocks with good long term groth potential, and
• buy stocks at prices that are substantially less than their intrinsic value.

This methodolology is based on the view that:

• every stock has an intrinsic value which is roughly equal to the net present value of its future cashflows,
• over time share prices tend to move towards intrinsic value, and
• holding stocks for the long term allows for the compounding of returns and does not realise taxable gains.

Therefore the investment process involves investing in value and growth.

Investment Objective

 The objective for each Hunter Hall Fund is to:

• Substantially outperform its relevant benchmark index over the medium to long term by investing in companies listed on the Australian and international stock exchanges, without incurring significant risk to capital;and

• to follow its relevant Ethical Investment Policy.

Analytical Approach

In simple terms, research is directed at discovering 'good' shares in 'good' companies which own 'good' businesses. That is, the objective is to discover undervalued shares in companies which are focused on growing per share value and own high return businesses.

Hunter Hall's research process is based on the analysis of primary sources such as financial statements and interviews with industry participants.  Secondary sources, such as stockbroker reviews or the media, are generally viewed as being of less value.

Investment candidates are subject to a detailed analysis of all available financial information, and integrated forecasts are made for the medium term future. If the candidate looks promising, qualitative information such as publicly available documents, market research surveys and interviews with customers, competitors, suppliers and company management is considered. By putting together a 'matrix' of information sources, the Portfolio Managers gain an informed view of the value of the stock and the factors determining this value.