Elston Australian Large Companies Fund

This is an actively managed portfolio of predominantly ASX listed businesses. The strategy's investment universe is all businesses within the S&P/ASX 100 index (at the time of investment), with a minimum 80% of the fund invested in companies in the S&P/ASX 50 index. The portfolio holds between 20 and 35 holdings and can hold up to 10 per cent in cash; however, the portfolio is expected to be fully invested most of the time. 

The Fund is constructed for investors who are looking for exposure to listed Australian equities, and are typically comfortable taking on a higher level of capital risk with the aim of achieving higher levels of growth in the long term. It is designed for investors who:

• are looking for long term capital growth above inflation
• are looking for a non-index weighted portfolio construction, and
• have a minimum investment timeframe of 5 years 

The return objective is to outperform the S&P/ASX 100 Accumulation Index by 2.0% p.a. (after fees) on a rolling 5 year basis.

Significant Benefits

• A large cap specialist with a minimum 80% of the fund invested in companies in the S&P/ASX 50 index 
• Experienced team with long-term track record of outperforming;
• A strongly aligned Investment Manager offering a competitive fee structure;
• A concentrated, style neutral, non-index weighted portfolio with less sector concentration than the benchmark;
• A team-based portfolio management approach which increases diversity of thought and reduces key person risk. 

Investment process

The Elston investment process encompasses five stages:

1. Idea Generation: Quantitative ranking of the investment universe in a consistent and repeatable manner to generate research ideas and focus the research effort;
2. Investment research: Qualitative assessment of each company focused on understanding the structural dynamics, complexity of operations, competitive environment, earnings stability and predictability, balance sheet capacity and management quality;
3. Valuation: Valuation and 3 year expected return calculations using Elston derived financial models;
4. Portfolio construction: Determine target weights in accordance with strict policy guidelines to ensure diversification is achieved across both securities and sectors;
5. Portfolio management: Ongoing rebalancing to avoid individual position and sector exposures in excess of risk tolerances.
   

The Fund is considered a core 'style neutral' product that is suitable for blending with other Australian equities strategies, including absolute return and small cap products. 

Asset allocation

The Fund invests across Australian shares and cash.

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WARNINGS AND DISCLOSURES: This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.