GLOBAL FUND

A robust Global Fund offering broad appeal requires a
minimum investment of $10,000


INDIVIDUALLY MANAGED ACCOUNT

The Individually Managed Account offers investment
management capabilities of PMCM.


SEPARATELY MANAGED ACCOUNT

The SMA provides investors access to a customised
share portfolio managed by PMCM.

WHAT WE BELIEVE IN –
AND WHY IT WORKS

John Maynard Keynes: “As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one knows something about... It is a mistake to think that one limits risk by spreading too much between enterprises about which one knows little and has no reason for special confidence...”

Keynes was right.

Why invest in something one knows little about? We want impressive returns for our clients; we attempt to remain firmly within our circle of competence.  Our investment philosophy can be summed up thus: We are looking for businesses with durable competitive advantage, run by people who will maintain and/or improve on that advantage over time.

As such, we focus on businesses, industries and companies we can understand, placing a heavy weight on high probabilities. It’s pretty simple: We believe that superior long-term returns can be generated by investing in a small number of great companies, run by great management, purchased at a great price.

Share selection
First and foremost, we view an investment in a company’s shares as an investment in the company’s business.

We’re not wasting time trying to second-guess which way the market may move in the short term and we are not an ‘active’ trader. Our investment selection process is ‘bottom-up’, research intensive and continually mindful of your investment with us. Our experienced team of analysts follows a clearly defined and distinct investment strategy.

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Time horizon
Patience is everything. At Peters MacGregor Capital Management we will only buy a share if we're prepared to hold it for at least ten years. Holding shares for the long term allows compounding of returns and minimises frictional costs such as capital gains taxes; ultimately putting you in front.

Diversification
We dislike a scattergun approach and only invest in a small number of businesses (no more than 25). This targeted approach enables us to thoroughly understand – to immerse ourselves – in the businesses we invest in.

Risk
Just like you, we are naturally somewhat risk-averse.

We identify two types of risk: business risk and price risk.

Selecting businesses with competitive advantage, sound economics, competent management and bright futures can substantially reduce business risk.

Price risk enters the equation if too much is paid for a business, even where it is an excellent business. That's why we insist on a reasonable 'margin of safety'.

Margin of safety
Each prospective business is valued by Peters MacGregor Capital Management on a discounted free cash flow basis, and we only invest if the share price is at least 20% below this assessed value range. This forms the basis of our 'margin of safety' and is critical in protecting your capital and achieving high returns.

In our view, price is what you pay and value is what you receive. Over time, we've seen that a company's share price will trend toward its true value. So our investments have two powerful factors working simultaneously: the value of the business is growing, while the share price is 'playing catchup' to this value.

Portfolio construction
A 'bottom-up' stock picking approach means we identify outstanding businesses which are trading at material discounts to assessed valuations. Our Global Equity Portfolios comprise a small number of individual stock selections. Investment weightings are primarily determined by the Investment Manager's assessment of quality of business and the prevailing margin of safety.

It's likely that a material part of the portfolio will comprise securities quoted on overseas markets, which are denominated in foreign currency. Peters MacGregor Capital Management does not borrow, and may on occasion, hedge against movements in the Australian dollar and other currency exchange rates, but the default position is to remain unhedged.