Investment process

Investment process

DNR Capital uses a fundamental bottom-up research process with a top-down overlay. Each stage of the process is outlined below.

 

Liquidity filter

• for a stock to be eligible for investment is must satisfy our liquidly assessment.

Idea generation

• quantitative and quality screening
• company and industry contacts
• daily meetings to discuss findings and allocate tasks

Security research

• phase 1 – ‘Quality Web’ assessment
  – strength of management
  – balance sheet
  – earnings
  – industry structure
  – ESG review
• phase 2 – fundamental bottom up valuation and investment thesis

Portfolio construction

Recommended stocks considered given:

• top-down considerations
• portfolio characteristic impacts
• stock and sector correlation analysis
• after-tax consideration

Ongoing portfolio management and risk review

• Risk analytics
• Investment Committee meeting
• conclusions constantly retested
• sell decisions based on:
  – reach target valuation
  – deterioration of quality characteristics / investment thesis

This process is adapted for the Australian Equities Income Portfolio and the Australian Equities Socially Responsible Portfolio to take into consideration the respective income and socially responsible investing criteria specific to these portfolios.

For further information please contact us on info@dnrcapital.com.au