Frequently Asked Questions

Endeavor is a boutique fund manager investing in Australian equities.

Endeavor was established in August 2010 and manages investment portfolios on behalf of individual high net worth investors and wholesale institutional clients. Our high-performance team combine over 100 years’ experience and a proven track record in funds management.

Please complete our application form or contact us to talk directly and we will guide you through the process.

Before your invest, it is essential that the investment is appropriate not only to your wealth management needs but that it is appropriate to your own expectations of risk and return.

While we strive to make the process as simple as possible it is essential that we have certain information for compliance and regulatory purposes.

At Endeavor we believe in aligning our incentives with our client’s requirements and have structured our fees to provide appropriate incentive. The fee structure is:

Management Fee11.35% per annum plus GST
Performance Fee215% x Outperformance x Base Amount
Transactions Costs30.20% plus GST per trade or less
Minimum FeeNIL

 

1Management fees – These are calculated Quarterly in arrears based on the daily Total Portfolio Value and is deducted directly from your portfolio. The management fee includes all costs associated with the custodian Sandhurst Trustees.

2Performance fees – Outperformance = the lessor of portfolio rate of return minus benchmark rate of return since last Reset Date or portfolio rate of return since last Reset Date minus zero.

Base Amount = the portfolio value at last Reset Date (plus any additional contributions and minus any withdrawals).

Reset Date = the last business day of the Quarter for which performance fee was last paid or the opening account date if no performance fee has been paid.

Benchmark rate of return = the ASX All Ordinaries Total Return (XAOAI.ASX).

Portfolio rate of return = time weighted rate of return (TWRR) after fees per Global Investment Performance Standards (GIPS).

This equation is tested at the end of each quarter, and if the value of the portfolio at that date is less than:

  • The value of the portfolio on the commencement date (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).
  • The value of the portfolio on any previous Reset Date (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).
  • The value of the portfolio on the last business day of any prior quarter (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).

Then no performance fee is payable, even where the calculated performance fee would otherwise be greater than 0.

3 Transactions costs – These are paid for every purchase and sale in your portfolio, this is charged at cost and forwarded directly to the broker who facilitates the transactions. It is not a fee paid to Endeavor.

No. The high-water mark prevents clients paying any performance fee on a lower portfolio value.

Unlike a unit trust, if you invest through a Managed Discretionary Account (MDA) you have beneficial ownership of the actual assets within each portfolio, so you can see what shares you own and track changes in your portfolio.

Endeavor has a custody agreement with Sandhurst Trustees Limited (Sandhurst) for MDAs. Under this agreement, Sandhurst will hold the legal title to any shares acquired or held through Endeavor’s managed service. While Sandhurst holds legal title, the beneficial interest in the shares remains with you. Further information on Sandhurst below.

We have three key investment principles. 

  • 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.

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

We are not interested in building huge funds under management. We want to remain nimble and adaptable so that when required we can act swiftly in the best interests of all our clients. We know the challenge that comes with managing large portfolios.

As the track record of our staff is very important to us, you will not see Endeavor grow at the expense of performance.

Endeavor is committed to remain a true boutique asset manager.

Endeavor offers both unit trusts and Managed Discretionary Accounts (MDAs)

With an MDA investors retain individual ownership of the underlying investments managed by Endeavor.

Endeavor portfolios follow a similar investment approach of focussing on a limited number of stocks, but each portfolio has separate target characteristics and different risk/reward profiles.

It is essential you understand the characteristics and risks of the fund strategy you are invested in.

If you are invested in an MDA product, Sandhurst is the custodian of the assets that you acquire through the MDAs.

Sandhurst is licensed by ASIC (AFSL 237906) to, amongst other things, act as a custodian. Sandhurst Trustees is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited (AFSL 237879).

Under financial services laws and ASIC’s policies, an entity which holds the legal title to clients’ assets must meet certain minimum financial requirements. This includes a minimum level of net tangible assets of $5 million.

To ensure these minimum financial requirements are met, Endeavor entered into a custody agreement with Sandhurst. Under this custody agreement Sandhurst will hold the legal title to any assets acquired or held through the MDAs. While Sandhurst holds legal title, the beneficial interest in the shares remains with you. In accordance with customary practice, Sandhurst will hold the assets under the agreement in a pooled account, but the assets will be identified as your own using our electronic book-entry system.

This arrangement means that Endeavor holds records for all individual clients and is able to produce client reports on request at any time but does not hold the legal title to the shares. Under the custody agreement, Sandhurst holds the legal title to your shares as a ‘bare trustee’. This means that Sandhurst does not have the right to deal with your shares other than as directed by us.

Accordingly, Sandhurst’s role is simply to hold the legal title to the assets of clients of the MDAs and to give effect to the instructions provided by your Endeavor investment manager.

Sandhurst is obliged under the custody agreement to give effect to your investment manager’s instructions and is also required to provide various reports to Endeavor at regular intervals in relation to the assets held by it in connection with the MDAS.

Finally, under the custody agreement Sandhurst is required to maintain an adequate level of insurance in relation to its activities as a custodian.

Given Sandhurst is only a bare trustee; it cannot sell your shares unless you or your authorised investment manager gives instructions to Endeavor to do so.

The custody agreement acknowledges that although Sandhurst holds the MDA assets as bare trustee for Endeavor, ultimately, we act on your behalf you hold the beneficial interest in the assets. This means that no creditor of Sandhurst can lawfully seize the assets it holds in its capacity as custodian of an MDA.

Accordingly, in the unlikely event that a liquidator was appointed to Sandhurst, that liquidator would not be entitled to sell the assets held by Sandhurst on behalf of the clients of MDAS to satisfy any debts owed to Sandhurst’s creditors.

The MDAS Agreement requires that we identify that the assets belong to you. This means that no creditor of Endeavor can lawfully seize the assets that we manage as part of the MDAS.

The regular reports provided by Sandhurst to Endeavor in relation to the assets held by it in connection with the MDAS, will allow Endeavor to provide an accurate consolidated reporting service to clients.

All correspondence and corporate actions are received by Endeavor and are looked after by our administration team. This should minimise the possibility of missed option expiry situations or missing other corporate actions

You (as a client) are still entitled, on request, to receive any correspondence you would receive if you held the shares directly.

Anonymity on share register – only Sandhurst’s name appears on companies share registers (it is possible to request underlying holders’ details under the tracing provisions of the Corporations Act on request by ASIC or the listed company)

Shares can be transferred back to the beneficial owner – unlike managed investments where the units must be sold giving rise to a CGT event.

Endeavor is owned and managed by Hayden Beamish, Richard Hamersley and the 51 Capital Group. All three have a long and successful history working together and managing investments and client assets.

Hayden and Richard are supported by a highly experienced professional team.

More than anything our clients are behind Endeavor. We believe that the most important element of our business is the needs of our clients. Our commitment to place our clients’ interests first is what drives our business forward.

You can find more information about our policy by visiting Endeavor’s Privacy Policy.

295% p.a.

The Growth Equities portfolio will typically hold 20-35 ASX listed equities.

Top 200 and cash represent at least 75% and Ex-200 25%.

258% p.a.

The Balanced Equities portfolio will typically hold 20-35 ASX listed equities.

Top 200 and cash represent at least 85% and Ex-200 15%.

324% p.a.

Typically holds 15-25 ASX listed equities with no index restrictions.

Typical starting weight up to 10%, target maximum position.

6.21% p.a.

Investing in investment-grade issuers of hybrids and bonds with a small allocation to non-investment grade bond ETFs to improve returns and diversification.