The Fund

Our Balanced Equities Fund will typically hold 20-35 ASX listed companies, with approximately 85% of these from the ASX Top 200, and 15% outside the ASX Top 200.

The Strategy

We identify structural investment themes and then use a bottom- up, fundamental research approach to find the most undervalued companies exposed to these themes.

Through relentless research and active portfolio management we seek to ensure the fund’s investors are always exposed to the highest quality opportunities in the market.

Performance Table

PerformanceMayQuarter1 Year3 Yrs p.a.5 Yrs p.a.12 Yrs p.a.Inception
Balanced Equities1.6%5.4%14.2%6.4%9.1%11.6%295%
All Ordinaries Accum0.9%1.2%13.9%6.8%8.2%10.0%201%
Outperformance0.7%4.1%0.3%-0.4%0.9%0.5%93.8%

Performance Chart

Monthly Reports

Our Investment Process

The fund is the culmination of a research-intensive process aimed at identifying sustainable businesses with strong management, a positive thematic, strong growth prospects, and a compelling investment case.

Our research-intensive process is aimed at identifying great investment ideas. We have a ‘boots on the ground’ approach focusing on company meetings, visiting assets and industry contacts. Our conviction is valuation dependent, and we focus on buying at a discount to net present value of discounted cash flows.

Our philosophy is to focus on business quality, growth prospects and management ability. We look to genuinely understand these fundamentals to gain all-important conviction.

The portfolios are diversified and constructed to optimise risk-reward. Stock weightings are based on conviction, risk-reward and valuation. We avoid over-exposure to a particular stock, sector, thematic or risk.

What kind of businesses do we like?

Our philosophy is to focus on business quality, growth prospects and management ability. We look for:

  • A clear and resilient competitive advantage
  • Strong organic growth potential
  • A supportive thematic
  • Capable and aligned management
  • Compelling valuation

How do we select which stocks to buy?

Stock picking is governed by our extensive research and analysis of the fundamentals.

We identify stocks for investments based on:

  • Our long-term experience with companies and management teams.

  • A proprietary fundamentals-focused quant screen that is run right across the ASX.

  • Learnings emanating from company meetings, industry contacts and from clients.

  • A network of sell-side and buy-side equity analysts.

How do we construct the Endeavor Balanced Equities Fund?

We construct the Balanced Equities Fund based on:

  • Our internal discount cash flow valuation estimate.
  • Valuations such as earnings and cash-flow based valuation tools, including comparative PE multiples, relative PE multiples, EBIT multiples, free cash flow multiples, PEG ratios.
  • Our conviction levels concerning the stock fundamentals, growth opportunity and management’s ability to execute.
  • The risk-return proposition, including a consideration of the probability and extent of downside risks and upside potential.

All investment decisions are reviewed and approved by the Investment Committee.