Detailed Research  

A key feature distinguishing Selector’s research is the consistent application of our proprietary “Road Map” checklist. The Road Map is a drill down into the 4 quantitative factors measured in the initial stock screening process. It focuses on business and management qualities that Selector believes are the foundation of all good businesses. These factors are both quantitative and qualitative in nature.

Selector adopts a bottom up approach to stock selection because no two companies are alike and not all companies possess each element of the Road Map.

The Road Map is used as a checklist to assess changes within a business. It allows Selector to monitor each company’s individual “milestones”, which are monitored on an ongoing basis.

Achieving milestones on a consistent and timely basis is an important test of a business and management team. By measuring a company against milestones the portfolio manager seeks to separate business fundamentals from share price performance.

One of the most important parts of our stock selection process is meeting with management. Selector aims to meet with senior management when undertaking detailed research. This includes one on one meeting in our offices, site visits, annual general meetings and also industry sponsored meetings.

Selector’s investment strategy and stock selection process enables our portfolio managers to identify companies with either strong sustainable growth in real earnings per share or otherwise the capacity to return high levels of excess cash back to shareholders. Selector knows that the market’s recognition of value may take time to emerge. The Fund is therefore ideally suited to investors with a longer term investment horizon.