The Capital 19 Global Growth Portfolio employs a bottom-up, value style to invest and manage the equity portion of the portfolio. The portfolio aims to be 95% invested in American equities and sets aside 5% to cover any hedging requirements that may arise. The portfolio seeks to identify and invest in American listed companies with a market capitalisation greater than $1 Billion USD which satisfy a stringent set of investment rules. For inclusion in the Capital 19 Global Growth Portfolio, a company must be of premium quality, display bright prospects for earnings and growth in intrinsic value, and be available to purchase at a reasonable price.
Pursuant to this objective, the Global Growth Portfolio aims to deliver superior positive returns where suitable investment opportunities are abundant and to preserve capital through derivatives and cash where suitable investment opportunities are scarce.
Capital 19 may also contemplate protecting the market value of the portfolio by, for example, buying put options over the S&P 500 index.
While the portfolio seeks to retain holdings for the long term, individual holdings may be sold, for example, when their share prices experience excessive or unjustified exuberance, where the company no longer meets its investment criteria or a deterioration in a company’s prospects is expected or where better opportunities become available.
It’s also important to note that the client maintains the final decision for all transactions. This portfolio is designed to be general advice in nature and should not be considered a managed discretionary style account. All holdings are held in individual client accounts.
The Capital 19 Global Growth Portfolio has an absolute return objective over a rolling 5 year period.
The Portfolio will typically comprise of 20-40 high conviction stocks listed on American exchanges. When possible, Call Options will be used to generate income and provide a hedge against Volatile markets.
Recommended Investment Timeframe
Minimum Initial Investment
2.00% per annum
20% of the total return of the portfolio. The portfolio operates a high water mark where no performance fee is payable until any previous rolling 12 month period of underperformance has been made up.
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The contents of this document are copyright. Other than under the Copyright Act 1968, no part of it may be reproduced, distributed to a third party without Capital 19’s prior written permission. Capital 19 asserts all of its intellectual property rights in relation to this document and reserves its rights to prosecute for breaches of those rights. Michael Smith is the investment manager for the Capital 19 Global Equity Income Portfolio. Comments and Opinions expressed are that of the Investment Manager. The figures quoted are not audited and are based on the Investment Managers calculations. Whilst every care has been taken to ensure accuracy, Capital 19 takes no responsibility for error or omissions.
Capital 19 provides general financial advice only. As a result, this document and any information or advice has been prepared by Capital 19 without taking account of your objectives, financial situation and needs. Because of this, you should, before acting on any advice from Capital 19, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. Capital 19 strongly recommends you seek independent accounting, financial, taxation and legal advice, tailored to your specific situation and needs prior to making any investment decision. The investment manager certifies that all the views expressed in this document accurately reflect their views about the companies and securities referred to in this document and that their remuneration is not directly or indirectly related to the views. Capital 19, its directors, representatives, employees or related parties may have an interest in any of the companies and securities in this document and may earn revenue from the sale or purchase of any financial product referred to in this document or any advice. AFSL 441841