The QuayStreet New Zealand Equity Fund has been issued a “4 IP” rating by Research IP, with a score of 3.78/5.
The QuayStreet New Zealand Equity Fund (“the Fund”) invests predominantly in companies that are in the S&P/NZX 50 Index. However, there may be an allocation to smaller companies listed on the NZX Main Board or to unlisted companies who have the intention of listing on a recognised exchange.
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Research IP says
“The QuayStreet investment team is a tight knit one with the core of the investment team being together for over 10 years. South has extensive experience in the Australasian equity space. He previously worked at Brook Asset Management, which wound up in April 2014 by the owner, Macquarie Bank. Both Cross and Stevanovic worked with South at Brook Asset Management.“
“The Fund is led by bottom-up, fundamental analysis from the Manager, with a good understanding of key drivers of the NZ market at a sector and macro level. QuayStreet maintain a well-defined investment process. The decision-making framework starts with quantitative screening applied to identify what stocks they should focus their attention on, or to alert the team to stocks they might not be paying attention to within the universe. The quantitative metrics may include return on assets, return on equity, dividend yield and interest rate sensitivity amongst others.“
“Further research is undertaken by assessing the qualitative characteristics of a company. The framework is based around Porter’s five forces. This framework was first published in the Harvard Business Review in 1979, named after its originator Michael E. Porter. The framework provides a good basis where the Manager can apply a repeatable process that is in line with their bottom-up, fundamental approach. However, the process still requires nuance given not every industry functions the same way, and some companies will crossover into different sectors dependent on their products/services. The analysis is still subjective and requires discipline by the Manager in its application. Research IP believes the Manager applies the Porter framework effectively.”
Research IP, 28 July 2021
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Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.
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