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Our Objectives and Approach: Strong Returns, Quality, Long Term

Our Objectives and Approach: Strong Returns, Quality, Long Term

Our Objectives and Approach: Strong Returns, Quality, Long Term

Mirrabooka’s investment objectives are to provide medium to long-term investment gains through holding core investments in select small and mid-sized companies. As part of these returns, we aim to provide an attractive, fully franked dividends to shareholders.

We specialise in investing in Australian and New Zealand small and medium-sized companies which fall outside the top 50 listed companies by market size on the ASX.

Our medium to long-term approach to managing our portfolio means we’re generally a long-term investor, but we want to buy stocks when we see fair value, and we're wary of overpaying. Our holdings will often grow with increased conviction or when there's a buying opportunity following on from a price dip in the market.

We will sell stocks when the investment case adversely changes and we monitor all our holdings for excessive valuations to manage the risk. We also maintain a spread of holdings which enhances the consistency of the returns.

When looking at companies, we focus on three key elements.

1. Quality companies

The first thing we look for is the quality of the business. We're looking for companies that have an attractive, sustainable return on capital. They might be achieving it either now or there's a strong likelihood that they will achieve that in the future. We want to invest in companies where we see growth over the medium to long term.

2. Strong financial position

Financial strength has always been an important consideration for us and we're wary of companies that are carrying excessive debt. A strong balance sheet provides resilience, and it also provides great reinvestment opportunities for a company. We want the returns the companies generate to be supported by strong cash flows.

3. Quality management and governance

Quality management is crucial when investing in small and mid-sized companies. We want management to act like a substantial shareholder and they often are. We refer to these as owner-driver companies. We're looking for management who are experienced, effective, and passionate about what they do.

As a long-term investor, we want to invest in companies that have strong governance and risk management processes. This includes consideration of environmental and social risks. We regularly review companies to ensure ongoing alignment with our investment frameworks.

Mirrabooka has been growing the wealth of investors since it was established in 1999, offering investors a diversified portfolio which reduces risk, low cost and no performance fees, and long-term investment performance.

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