Valor Model Portfolio Benefits
Valor Model portfolios inside a Separately Managed Account (such as on Mason Stevens) provides an investor with low cost active management of direct equities and fixed interest investments both domestically and internationally.
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For those seeking to diversify their direct investment portfolio offshore, Valor Model Portfolios can provide proactive risk management of associated concerns such as currency hedging and stock selection.
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Who do we suit?
Investors who prefer the lower costs of direct ownership.
Investors looking for direct international investment with professionally managed dynamic currency hedging. They may be more sensitive to market volatility (eg pre retiree) and would like a portfolio which is actively managed to reduce risk of permanent capital loss.
Investors who value transparency and knowing where their money is invested.
Investors who want to access value opportunities but want the core of their portfolio invested in high quality, net cash investments with lower risk of permanent loss.
Investors who want dynamic management of asset allocation within defensive/growth allocations based on best comparative rational return decisions drive the investment and not arbitrary asset percentages to geographic locations.
Investors who know that ethical, sustainable and governance (ESG) issues start with the values of the management of the business and want businesses with quality management who are building for the future.
Investors who prefer concentrated portfolios for their
Investors who want the improved efficiency of their direct portfolio trades being fed directly into their accounting software such as Class.
Investors who want trades actioned quickly to take advantage of market movements.
Investors who want to do a blend of self management and professional management and want their trades acted on quickly and not 24 hours later.
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​Low Net Debt
Debt can help a business grow but it can also wipe it out in adverse conditions. Loans that can’t be refinanced or repaid can result in shareholder capital being eroded or permanently lost.
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Our investment focus is on companies with more cash than debt (Net Cash) or at least a high debt coverage ratio.
See our insights for more information.
Accountability
Businesses that have management incentives aligned with shareholder incentives reduce the risk of loss.
If the management have minimal personal loss for poor performance, their decisions are more likely to be riskier for shareholders.
We filter out companies with poor incentives or low employee shareholding to reduce the risk of poor management causing loss.
ESG
Many of the companies in our portfolio are proactive with environmental, social and governance issues (ESG). As at Nov 2021, our Growth portfolio has a strong Morningstar ESG weighted average rating of 19.76 out of 50, or approximately 4 out 5 globes.
Our focus on the values of the management demonstrates the positive outcomes possible.
High Quality
We view quality is more important over quantity. Our highly concentrated portfolio holds high quality companies in its core aiming to reduce risk by excluding lower quality investments.
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Our strategy is prevention of loss where possible and the smoothing of returns though share prices bouncing back faster after market corrections.
Integrations
Class
BGL
Xplan
Coin
Adviser Logic
Midwinter
Practifi
Xeppo
My Prosperity
Capital Raising
We avoid companies who primarily use capital raising to grow the business as we do not wish to see our investor's value diluted.
Generally, we prefer businesses with strong positive cash flow that buy back shares thereby naturally increasing the value of the shareholders investment.
Taxation
Taxation can be the highest cost to a portfolio and erodes individual investor returns.
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Our buy and hold core provides excellent tax advantages through the 12 months capital gains tax discount. Other investments with high internal trading can have their returns cut by up to 45% when they finally reach the investor.
Dynamic Currency Hedging
We hedge the Australian dollar based on reversion to mean strategies. This dynamic process enables our investors to hold their investment and benefit in rising and declining AUD conditions.
For advisers and investors, they do not need to switch to either hedged or unhedged and incur switching costs and taxation.
