Finsbury Portfolio Objectives
The main objective of the Finsbury Portfolio is to buy ordinary shares in well-managed and profitable companies listed on the Australian Stock Exchange (ASX). This portfolio is based upon the investment principles of emphasising intrinsic value in selecting undervalued stocks with a focus on medium to long term investment. This requires the selection of corporations that are expected to deliver above average earnings per share growth on a sustainable basis that can support a solid and growing dividend stream. The Finsbury Portfolio is an equity-based fund comprising only of equities or equity derivatives and cash or cash equivalents. Risk exposures are managed by emphasising investment quality and a balanced and diversified portfolio composition. The Finsbury Portfolio employs a disciplined management approach to limit exposure to any individual corporation in terms of both percentage of the fund and its investment capital. Special emphasis is placed on:
- strong, experienced and disciplined management and a capable board
- sound business mode
- strong free cash flow generation
- sustainable dividend yields
- growth and/or income criteria
- market liquidity