Through rigorous fundamental analysis Clime seeks: a range of equities, preferred shares, debt securities, income notes, A-REITs and cash.
All holdings are subjected to our rigorous and disciplined qualitative and quantitative selection process.
The portfolio has a natural bias towards the S&P ASX 100 stocks and their associated debt securities, and generally defensive sectors including property management, infrastructure, healthcare, telecommunications and financials.
Portfolio returns are likely to be added to by franking credits. Clime seeks to identify high quality securities issued by businesses which contain many if not all of the following characteristics:
- a strong balance sheet enabling the business to service debt comfortably,
- a high cash return on equity,
- relatively low capital requirements allowing a business to generate cash while growing,
- high market share in their principal product and/or service lines, and
- short customer repurchase cycles and long product cycles.
Quantitative Filtering and Sector specific screening will identify appropriate:
- REITs (LPT)
- Utilities and Infrastructure
- Consumer staples and other defensive sectors such as healthcare and energy retailer
- Banks’ preference shares
- Bank income securities (and debt)