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At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit, and structured products. 

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Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

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Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

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formerly Realindex Investments

Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

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Australian Equities Growth

Our distinct blend of growth and quality has delivered outperformance through market cycles

Successfully uncovering Australian companies that are growing revenue and earnings strongly over time enables us to outperform during rising markets. Our added focus on quality companies that generate superior returns on capital and are improving their management of ESG risks also gives our portfolios additional ballast during falling markets.

Why invest with us?

Across all our Australian equities strategies, we adopt a consistent investment process that blends growth and quality stocks together through a well-established portfolio construction approach that incorporates a rigorously applied discounted cash flow valuation discipline.

These factors enable us to generate consistent outperformance across the cycle for our investors.

  • That process is driven by our investment philosophy and supported through in-depth industry analysis and rigorous stock research.

  • Growing companies that generate consistent returns and can reinvest above their cost of capital to provide the greatest shareholder value.

  • Change to company returns on invested capital has high explanatory power for stock outperformance.

  • Analysing industry drivers is critical to understanding what drives stock performance and informs our DCF valuation methodology.

What we offer

Our open-minded and investigative approach identifies companies that we believe can consistently grow sales, cash flows and earnings over time. We have the experience and dedication to analyse under-researched stocks outside the ASX 100, without taking short cuts.

Explore how we invest in Australian shares

Case study

Why we blend growth and quality

Through our investment process, we blend the characteristics of companies with strong sales/cash flow/profit growth and earnings quality. Along with our preference for quality management running companies with lower environmental, social and governance risks, our  Australian equities portfolios tend to generate outperformance through the cycle for our investors.

Our exposure to growing companies in strong industries, such as Australia’s technology sector, tend to result in attractive growth attributes that see our portfolios typically grow faster when the broader market is rising. Looking across the months that the market has risen in any three-year period since its inception in January 1994, our Australian Shares Fund has risen faster than the market in over 55% of those three-year periods (rolling monthly).

Combined with the defensive characteristics of our quality focus discussed in the prior section, the Australian Share Fund has:

•   risen 1.7%pa faster (net of fees) than the market during all the up months of the S&P/ASX 300 since January 1994: and

•   fallen more slowly than the market by a similar 1.7%pa (net of fees) during all the down months over the same period.

Our blend of growth and quality consistently generates value across market cycles

Source: Upside and downside market returns since the inception of the Wholesale Australian Share Fund in January 1994 calculated by First Sentier Investors using consistent methodology adopted by eVestment. Value added is relative to the S&P/ASX 300, which is the benchmark for the Wholesale Australian Share Fund strategy. The S&P/ASX 300 Index was launched on 3 April 2000. Index performance data before 3 April 2000 is a synthetic benchmark sourced from a variety of providers maintained in the First Sentier Investors performance database. It is provided purely for information and should not either be considered as fully replicating ASX 300 constituents, or relied on for the purpose of investment analysis outside of the context of this material.

Our risk management and strong valuation discipline also ensure that we retain a balanced exposure to growth and quality attributes over time. Our investors then continue to benefit over the longer term from this balanced approach that adds value evenly across up and down markets.

The advantage of blending growth and quality

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Source: Upside and downside market returns since the inception of the Wholesale Australian Share Fund in January 1994 calculated by First Sentier Investors using consistent methodology adopted by eVestment. Value added is relative to the S&P/ASX 300, which is the benchmark for the Wholesale Australian Share Fund strategy. The S&P/ASX 300 Index was launched on 3 April 2000. Index performance data before 3 April 2000 is a synthetic benchmark sourced from a variety of providers maintained in the First Sentier Investors performance database. It is provided purely for information and should not either be considered as fully replicating ASX 300 constituents, or relied on for the purpose of investment analysis outside of the context of this material.

Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.

Questions about investing in Australian Equities Growth

What are stock market sectors?

The 2,000+ companies listed on the Australian Securities Exchange can be divided into categories defined by the Global Industry Classification Standard (GICS). There are 11 sectors in the first level of the GICS hierarchy, these are; Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Utilities and Real Estate. Each company is assigned to the GICS sector that best defines its business. 

What is an investment style?

Like the GICS sectors, companies can be categorised into different 'style' buckets using a variety of metrics, such as earnings growth, price-to-earnings multiple and dividend yield.

Investors may include a style bias in their security selection process, choosing companies with particular qualities they believe will prove more attractive over time. Major investment styles include growth, value, quality, momentum and income.

What is a growth investment style?

In short, growth investors focus on capital appreciation and attempt to identify companies that will grow their earnings over time and at a faster rate than their peers or the overall economy.

Growth companies typically have a differentiated product or service that can disrupt their respective industry. These companies generally exhibit high returns on capital that is above their cost of capital. This fosters a preference to reinvest firm earnings into additional growth opportunities, rather than pay dividends to shareholders, which in turn drives share price appreciation. 

How do you identify growth companies?

We employ a fundamental, bottom-up analytical framework to assess the investment universe. To identify growth companies, we seek to determine which companies are currently earning a higher return on invested capital (ROIC) than the industry median or, if they are under-earning, have the potential to increase their ROIC.

We believe that industry dynamics are one of the major determinants of company profitability and ROIC. Through in-depth stock research and hands-on engagement, we seek to identify a company’s competitive position within their industry with respect to cost leadership, product differentiation, and qualitative analysis of company specific factors, such as management and strategy.

This industry analysis enables us to understand how a company is able to generate returns on investment capital above their industry median and if it is sustainable.

Responsible investment

We believe that ESG issues have the potential to materially impact company earnings and valuations. As fundamental investors, we seek to identify material financial and non-financial ESG issues and incorporate these into our stock analysis and research. When relevant, the team incorporates ESG issues into financial models and analyst stock ratings.

The team believes that ownership and engaging with company management and boards for change is more effective than exclusions. Team members regularly meet with companies to discuss their approach to ESG issues, including climate change, companies’ relationships with traditional owners, modern slavery, and governance, depending on the relevance of the issue to the company.

Learn more about the Australian Equity Growth team's approach to responsible investment

Meet the investment team

Dushko Bajic

Head of Australian Equities, Growth

David Wilson

Deputy Head of Australian Equities, Growth

Christian Guerra

Head of Research