Investing Methodology

Clime is an absolute return, value-based investor. The development and management of the Clime International Fund is carried out with Sanlam Private Investments (UK) as the manager of the fund.

Clime Asset Management Pty Limited and SPI UK have developed an investment strategy and process that seeks to deliver strong risk-adjusted returns, over the long-term.

The Clime International Fund will select high quality individual investments to build and appropriately diversified, high conviction global portfolio. Through rigorous fundamental analysis we will 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.

Investment selection will be of securities of businesses with management teams that typically act with the following behaviours:

  • they undertake rational and justifiable corporate management
  • they maintain high returns on capital whilst generating excess cash after all reinvestment needs into the business
  • they make synergistic acquisitions to ensure above average long-term growth

The Fund manager will aim to achieve the objectives of the Fund by selecting individual listed securities. These securities can include:

  • Ordinary Shares
  • Preference Shares
  • Hybrid medium term notes

The Fund manager will not be constrained by region or sector. The investable universe will be drawn from a broad universe of international securities. individual sector, security and liquidity limits ensure appropriate diversification with this high conviction portfolio.

The following additional constraints apply:

  • No single holding in any security may constitute more than 6% of the Fund at any one time;
  • The Fund may hold a maximum of 35 different securities at any time;
  • The Fund may not hold more than 5% of the total shares outstanding of any single security at any time.
The information provided on this webpage and the rest of clime.com.au is intended for general use only. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein. Please consider our Information Memorandum, Product Disclosure Statement and Financial Services Guide before investing in one of our products. Past performance is no guarantee of future returns.
  • Copyright © 2018 Clime Investment Management Limited
CALL 1300 788 568

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