Back to Model Portfolios

View Platypus Model Portfolios

At Australian Unity Investments we focus on improving the financial wellbeing of our Investors and creating investments that are genuinely different to the rest of the market. Platypus Asset Management was established in 1998 and became joint venture partners with Australian Unity in February 2006.

The Model Portfolio is designed for Investors who:

• Are looking to enhance the performance of their existing Australian equities portfolio;
• Seek an opportunity for capital growth from the sharemarket over the medium to long-term;
• Feel comfortable with the potential volatility of the sharemarket; and
• Have at least a five year investment outlook.

The investment strategy of the AUI Platypus Australian Equities SMA portfolio is to invest in quality ASX listed companies that are assessed as likely to provide Investors with attractive long-term returns (capital growth plus above average yield and franking).

There is a 4 step investment process:

Identify opportunities and investment themes

The starting point of Platypus’ investment process is to complete a screening of investable stocks to identify those that indicate strong earnings potential. The health or otherwise of the economy, individual industries and sectors is also assessed, and any identified themes are then applied to the following detailed quantitative analysis.

Analyse earnings potential

This produces a list of about 100 – 150 stocks. Platypus conducts detailed quantitative analysis on the industry outlook, the company’s position within its industry, historic profit growth, earnings forecasts and balance sheet strength critical to this process is the use of independent sources such as brokers and specialist economics forecasting groups, combined with in-house research and expertise. Platypus assesses each stock’s capability of delivering strong returns typically around 20% pa over the following three year period before the stock is included or removed from the portfolio.

Assess durability and risk

In assessing the durability of a company’s earnings, the company’s growth profile, and the likelihood of any earning surprises, Platypus uses quantitative and qualitative screening techniques and uses a variety of information sources and may conduct company visits where appropriate. Platypus assesses the ability of the company’s management to deliver its forecast earnings, the source of funding for the expected growth in the share price, and any potential catalysts or external factors that may contribute to over or under performance.
The output of this process typically leaves around 30-40 investable stocks.

Portfolio construction

From here Platypus selects stocks to be included or removed from the portfolio. The relative weightings of each stock within the portfolio is set with due consideration given to (but not limited to) the stock’s market capitalisation, liquidity, expected return profile and risk controls. Consistency with Platypus’ investment process and with its views on industry or sector trends, is also a key factor when selecting stocks.

Back to Model Portfolios