Portfolio Risk Limits
 

The portfolio management process is deliberately highly risk averse. Hard risk limits have been established to ensure this is adhered to consistently.  

Selector’s uses a targeted process to screen for key business attributes: return on capital / earnings quality / low gearing / capital management.

Selector’s portfolio maintains a high level of portfolio liquidity and seeks to limit the maximum sector concentration of the portfolio.

Selector further reduces portfolio risk by avoiding the inclusion of risky start up and turn around situations and businesses.

 

Hard risk limits include:

- ASX top 100 weigthing > 50%

- ASX top 100: 10% position at cost of portfolio; maximum 15% through performance;

- Ex ASX top 100: 5% positions at cost of portfolio; maximum 10% through performance;

- Sector limit 30%;

- Min % in stocks > $100M market capitalisation 80%;

- Min liquidity monthly > 75% (est 25% historic daily turnover.