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About the Manager

Westoz Funds Management Pty Ltd is a wholly owned subsidiary of Euroz Limited (ASX Code: EZL) that was established in May 2005 to undertake the management of wholesale investment funds on behalf of clients.  Assets have been managed since this time.

It currently manages portfolios of Australian listed equities on behalf of two listed investment Companies, Westoz Investment Company Limited and Ozgrowth Limited.

The investment objective for both portfolios is to generate consistent positive returns over the medium to long term and utilise these returns to pay a consistent stream of fully franked dividends to our investors.

Investment returns to date for these portfolios have been positive and significantly in excess of comparable indicies. These positive returns have enabled the payment to shareholders of $204m of gross dividend income to date.

Due to the managers geographic location, the majority of investments have a connection to Western Australia.

Concentrated portfolios of equities are held to achieve the targeted levels of return.  From time to time, relatively high levels of cash may be held where suitable equity investments are sought.

Investment Philosophy

The Westoz investment philosophy is based on the premise that financial markets and individual securities can and do deviate away from fair value.  By detailed analysis of a range of valuation parameters, active management of a portfolio of equities can be used to generate an acceptable level of absolute return over a range of time frames.

The investment strategy is based on the long-term investment of funds and is consequently not suitable where large non-investment cash flows occur on a regular basis.

Due to the relative levels of research coverage by the market, Westoz believes that companies outside of the Top 100 will experience greater deviation from fair value.  It also considers that, given its geographic location and range of contacts, a greater number of suitable investments will have exposure to the West Australian economy as it has a comparative advantage in coverage of these stocks due to its location.

A range of parameters are used to assess value, but a key input to the analysis is the expected growth potential of the company.

After completing the necessary analysis, a set of stock recommendations is presented to the Manager’s Investment Committee.

Investment Committee

The Investment Committee  reviews the recommendations and put them in the context of the overall equity environment.  It then reviews the  current portfolio in light of the information presented to it and adjust holdings in the portfolio to ensure the targeted performance is achieved.

The Investment Committee will also consider the optimal instruments to achieve its performance objectives.  Where they are allowed, short positions may be used where a compelling reason exists.  Derivatives may also be used to generate additional income in the Portfolio or to protect the Portfolio from market downturns.

The Investment Committee meets regularly (generally daily) and consist of Jay Hughes, Dermot Woods and Philip Rees.  A charter sets out its operational parameters.

Risk Management

Performance of the portfolio will be generated from investment in suitable stocks.  However, diversification of holdings will be used to limit the risk where an investment does not perform to expectations.  Risk control features of the portfolio will include:

  • No one stock will represent more than 20% of the total portfolio value at the time of acquisition;
  • No investment will represent more than 20% stake in the issued securities of a company;
  • It is anticipated that the portfolio will consist of between 10 and 25 stocks, although more or less may be held depending on the number of securities identified that are expected to meet the performance expectations;
  • Where suitable stocks can not be identified, the portfolio may be invested in cash. Whilst unlikely over the medium to long term, the portfolio may comprise a significant percentage of short term cash deposits;
  • Any short positions will not represent more than 20% of the total portfolio value; and
  • Leverage may be employed in the portfolio, but total exposure will not exceed 120% of the portfolio value.

Any breach of these risk control measures will be reported to the Company by the Compliance Officer and the Company will determine the appropriate action to remedy the breach.

 

Mr Dermot Woods

Is an Executive Director of the Manager and is responsible for sourcing, analysing and implementing investment ideas.  He is a member of the Manager’s Investment Committee.

Mr Woods has over fifteen years of investment experience in international equity markets as an equity analyst and a portfolio manager. Prior to joining Westoz Funds Management, Mr Woods was an industrial equity analyst with Euroz Securities. Prior to joining Euroz, Mr Woods was an institutional stockbroker for Merrion Capital in Dublin. Mr Woods commenced his investment career with HSBC Asset Management in London where he specialised in European equities.

Mr Woods holds a Bachelor of Commerce Degree in Accounting and Business from Edinburgh University and has completed the Chartered Financial Analyst (CFA) program and been awarded the CFA designation.

Mr Philip Rees

Mr Rees is an Executive Director of the Manager, sits on its Investment Committee and is responsible for the operation and development of the Manager’s business.

Mr Rees has worked in a range of roles focussed on Australian investment markets since 1987.  He was the Director of Investments with the Government Employees Superannuation Board in Western Australia for a 6 year period to September 2000.  During this period, he oversaw a major restructuring of that entity’s investment portfolio and directly managed funds in Australian equity and fixed interest markets.

Prior to this period, Mr Rees was involved in the management of an Australian equity portfolio with Suncorp and in the analysis of equities for a stockbroker focussed on servicing the Australian institutional market.

Mr Rees has also been involved as Chief Investment Officer of a listed pooled development fund and has managed a number of successful venture capital investments.

Mr Rees has a Bachelor of Commerce Degree and is a Chartered Financial Analyst.  He is also a Senior Fellow of  FINSIA, a Certified Practicing Accountant and a Fellow of the Chartered Institute of Secretaries.

Mr Jay Hughes

Mr Hughes commenced as a Non Executive Director of the Manager in May 2005.

Between 1986 and 2000, Mr Jay Hughes was employed by a Perth stockbroker that was part of a national and international group at the time.  From 1994 he acted in the capacity of an Executive Director and before this as an Associate Director.

From 2000 until the present date, Mr Hughes has worked for Euroz Securities Limited and Euroz Limited and also acts in the capacity of Executive Director and Responsible Officer of both companies.  During this time, Mr Hughes has been involved in the institutional sales department of the stockbroking business dealing predominantly with offshore funds.  He is also heavily involved in many facets of the management and supervision of both companies.

Mr Hughes is also Non – Executive Chairman of Westoz Investment Company Limited and Ozgrowth Limited.

Mr Hughes holds a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia.  He was recognised as an affiliate of ASX in December 2000 and was admitted in May 2004 as a Practitioner Member (Master Stockbroking) of the Stock Brokers and Financial Advisors Association.

Mr Hughes is also a member of the Manager’s Investment Committee.

Mr Jaime Underdown

Mr Underdown commenced with the  Manager in June 2018 as Chief Operating Officer  and is responsible for company operations and reporting.

Before joining Westoz, Jaime was Head of Investor Relations at Platinum Mortgage Securities where he was responsible for managing the relationship and communications with members, financial intermediaries and family offices. Jaime has previously spent 7 years in London working for several large asset managers. During this time, Jaime worked as an Operations Manager at an emerging market hedge fund that invested in Russian, Eastern European and African securities. Jaime has also worked as a Fund Performance Analyst at Legal and General Investment Management – one of the world’s largest insurance and investment management companies.

Jaime holds a Bachelor of Commerce from the University of Western Australia, a Diploma in Financial Planning and has passed Level II of the Chartered Financial Analyst certification.

 

Mr Tim Banfield

Tim commenced with the Manager as Head of Distribution in July 2018.

He began his funds management career in 2001 with OM Strategic Investments in Sydney which was acquired to become Man Investments Australia, a subsidiary of leading alternative investment manager Man Group plc listed on the London Stock Exchange. During his some 10 years at Man Investments Australia he was appointed to Head of Retail Marketing and Director of the company.

Tim was responsible for the distribution and support of the company’s investment products to a range of clients comprising major financial institutions and financial intermediaries across Australia.

Tim returned to Perth continuing in funds management with Packer & Co for some 4 years in a business development and client services role and NWQ Capital Management as Managing Director, Distribution.

Tim holds a Bachelor of Commerce from Curtin University and a Graduate Diploma in Applied Finance and Investment from FINSIA.

Westoz Investment Company Limited is a listed investment company and was our first portfolio under management, having commenced operation in May 2005.

Further information on this company is available here.

Ozgrowth Limited is a listed investment company which commenced its activities in January 2008.

Further information on this company is available here.