Each year, the Equity Trustees Charitable Foundation (ECF) distributes more than $6m of charitable giving to for-purpose organisations.
Our investment philosophy is to preserve and grow the real value of capital over the long term while providing clients with the income they need.
As a leading philanthropic funder of the for-purpose sector, together with our core responsibilities as a trustee, we have constant consideration of the best interests of the community, now and into the future.
WHAT ARE WE TRYING TO ACHIEVE?
To create a high level of income that grows over time to fund distributions to your chosen charities. For the Equity Trustees Charitable Foundation portfolio, this means an investment objective to achieve a total return (capital growth plus income) of 4.5% above CPI over a rolling ten-year period.
HOW DO WE DO THIS?
We are here to secure a better financial future for our charitable trusts and their beneficiaries.
The Equity Trustees Asset Management team acknowledge that the market is not always efficient and a disciplined approach over a long period of time can add significant value. Our approach at Equity Trustees across all portfolios is to invest in quality companies at reasonable prices.
Quality can be measured through a combination of the following:
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Robust and sustainable cashflow generation
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A superior return on equity than the market
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A strong balance sheet
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Strong management and Board governance
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Excellent industry structure and market positioning
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Growth in earnings.
We aim to access companies at reasonable prices as measured by a range of valuation methodologies such as earnings multiples, dividend yield and discounted cash flow valuations.
We have summarised this approach as ‘Quality at a Reasonable Price’ (QuARP):