Systematic strategies based on decades of academic research.
Tax-effective structure, combined with a tax aware strategy.
Full transparency, with no paperwork.
* For example, a redemption request by another unrelated investor may force the fund manager to sell down a portion of the funds holdings, thus triggering capital gains that are then passed on to other unit holders. As a result, the investor may often be faced with a Capital Gains Tax liability, even without having realised a capital gain themselves.
2 Bellmont Core Equities Portfolio average turnover of 13% pa vs average for actively managed Australian Equities funds of 75% pa (Source: Towers Watson “After Tax Investing in Australian Shares” January 2011)
Whilst markets are generally efficient, decades of academic research have identified pockets of inefficiency, that provide opportunities for disciplined investors to earn superior returns, without taking on excessive risk. It is these pockets of inefficiency that we target.
Rather than relying on the subjective judgements of individual portfolio managers, we employ entirely systematic strategies that allow us to avoid the common behavioural biases that most investors suffer from – and which in many cases create the very inefficiencies we seek to exploit.
Unlike traditional fund managers, we believe investors have the right to see how their money is invested. By holding individual shares, rather than units in a trust, our investors enjoy complete transparency in regards to holdings, transactions, performance and fees.
Net Returns after fees and taxes are what really matter. By considering the tax implications of everything we do – from holding structure to strategy, we ensure that we maximise not only headline results, but also the net result to our investors.
The Bellmont Core Equities Portfolio is a diversified, blue-chip equities portfolio, giving investors direct exposure to the earnings growth, dividends and franking credits of 30 of Australia’s biggest companies.
The portfolio is designed to exhibit high correlation with the ASX200, yet with a distinct value bias – systematically adopting overweight positions in companies that are trading at lower than average valuation multiples, and underweight positions in those that are trading at above average multiples. The valuation metrics employed are Price to Earnings, Price to Sales, Price to Book and Dividend Yield; all of which have been heavily cited in Academic research relating to the ‘Value Effect’ since the 1970s.
The portfolio is classified as ‘Smart Beta’ and exhibits elements of both active and passive investment management – aiming to outperform the benchmark index, but with a systematic, low turnover, low cost approach. The portfolio is held as an SMA meaning investors enjoy transparency, full beneficial ownership of assets and significant tax advantages compared with a unitised structure. Read more
Watch a webinar overview of the Bellmont Core-Equities Portfolio below
By combining a diversified blue-chip Australian share portfolio with a buy-write overlay, the Bellmont Buy-Write Portfolio is able to generate equity-like returns, but with far lower volatility and downside risk.
The Bellmont Buy-Write strategy utilises Bellmont’s flagship Core Equities Portfolio at its core which is a diversified, blue chip equities portfolio with a distinct value bias, providing investors with intelligent exposure to the earnings growth, dividends and franking credits of 30 of Australia’s biggest companies. The portfolio utilises index options that swaps the possibility of ‘blue sky’ returns in any period, for the certainty of regular premium income – serving to reduce overall volatility and significantly decrease downside risk.
Whilst delivering modest returns during a rising market the Buy-Write portfolio is geared towards offering significant protection in a falling market. Its objective is to outperform the benchmark index over a full market cycle and smooth investor returns.
The portfolio is classified as ‘Smart Beta’ and exhibits elements of both active and passive investment management – aiming to outperform the benchmark index, but with a systematic, low turnover, low cost approach. The portfolio is held as an SMA meaning investors enjoy transparency, full beneficial ownership of assets and significant tax advantages compared with a unitised structure.Read more
Watch a webinar overview of the Bellmont Buy-Write Portfolio below
Core Equities Portfolio
|Professionally Managed by Bellmont|
|Share Portfolio holding 30 of Australia’s largest listed Companies|
|Smoother Investment Returns & Protection in falling markets|
|Potential to outperform in a bull market|
|Beneficial Ownership of Holdings|
|EOFY Taxation & Performance Reporting|
|24 Hour Online Access|
|Ongoing Paperwork Managed by Bellmont (eg: Corporate Actions & Dividends etc)|
|Minimum Account Size||$250,000 AUD||$250,000 AUD|
|Telephone Access to the Portfolio Managers|
Bellmont Managed Accounts allow the investor to seamlessly switch between investing in the Core Equities and Buy-Write portfolios without incurring the burden of establishing a new portfolio and enjoying virtually zero transaction costs.
Whilst both portfolios are designed to outperform over a full market cycle they tend to perform differently during individual periods.
Given that both portfolios have the same underlying shares (with the difference being the options overlay) investors can seamlessly switch between portfolios to protect themselves from an anticipated falling market by moving to the Buy-Write, or expose themselves to more upside by moving into the Core Equities portfolio. Switching is virtually cost free and since the portfolio of shares does not change, there are small – if any – tax consequences*.
* There may be a very small sale (0%-5%) of shares when moving to the Buy-Write as it holds a small cash buffer.