The flagship product is the Mainstreet high conviction portfolios of top quality domestic stocks and our global portfolioThese portfolio offers investors an opportunity to invest in a highly-concentrated equity portfolio consisting of ‘best investment ideas’. Mainstreet perceives outstanding companies to be those that are able to sustainably exploit competitive advantages in order to continually earn returns on capital that are materially in excess of their cost of capital. Mainstreet focuses on risk-adjusted returns, rather than benchmark-relative returns. As a result, the investment process is designed to generate an unconstrained, highly-concentrated portfolio of high-quality companies. The investment process integrates three key disciplines:
- Intensive bottom-up stock analysis and industry research.
- Broad and detailed macroeconomic insight.
- Rigorous portfolio construction and risk discipline.
SCREENING PROCESS PYRAMID
Active Asset allocation
Asset allocation is often acknowledged as the key driver of investment returns. We consider two key asset allocation issues:
- Sector allocation employs a medium-term horizon. Utilised from time to time by investors with a high conviction and where there is significant mis-pricing in one or more industry sectors. Expectation is for a return to “fair” or “normal” values over, say, three to five years.
- Country allocation has a short time horizon, usually one to three years. The aim is to manage risk and improve returns by allocating between the major countries because of anomalies in market pricing.
Our corporate governance structure is critical to financial and operational well being. Not only to set up an operationally efficient business model, but also to provide a structure through which Company objectives are set, and monitored. To ensure that Mainstreet delivers on its promise to all stakeholders the Company follows a Business Management System (“BMS”) that complies with industry standards. The BMS provides a framework for the continual review and improvement of Mainstreet processes with continuous improvement and corporate governance being a key objective. Policies in relation to all key areas of the Company’s operation, set out specific objectives and aspirations and how they are to be achieved. Formalised processes, tool kits and pro-forma documentation ensure that quality is delivered.