Investment Holdings

BCS Investment Holdings

BCS Investment Holdings focuses on investing in Companies with unique high quality assets, brands and/or business footprints that can withstand the business cycles.

Our Objectives

We aim to provide shareholders with attractive investment returns through access to a steady stream of fully franked dividends and medium to long term capital growth.

Our Goals

Our goals are to pay dividends which, over time, grow faster, and provide attractive total returns over the medium to long term.

BCS INVESTMENT HOLDINGS Investment Philosophy has the following core principles:

• Buy and Hold investment style over the long term
Our investment style is to buy shares in listed companies and hold them for the medium to long term. This approach minimises dealing costs and has historically provided investors with sound, long term returns.

• Sound returns with lower variability
By combining the benefits of investment in quality companies with those of diversification, the investment process seeks to produce attractive returns with lower volatility.

• Growing stream of franked dividends
As a long term investor, our primary method of communicating value to our shareholders is through a growing stream of fully franked dividends. We aim to provide shareholders with real income growth through growing dividends.

• Investment in quality stock
We focus on companies in attractively structured industries with unique high quality assets, brands and/or business footprints that can withstand the business cycles. We also look for Management and Board strength and for sound and disciplined financial metrics covering returns on investment, profit margins, cash flow and gearing. Our view is that such businesses will generate superior returns over the long term.

• Portfolio diversification
We seeks to reduce investment risk by diversifying its investments across a range of companies and industries, thereby ensuring that the portfolio is not overly exposed to one company or one particular sector of the market. While the Company has not set specific minimum or maximum levels of the portfolio that can be invested in a single company or sector, the weightings of individual securities and market sectors are regularly reviewed by the Investment Committee.

• Monitoring existing stocks in the portfolio
BCS Investment Holdings is fundamentally a long term investor in companies and these investments are monitored closely to ensure ongoing alignment with our Investment Philosophy.
Share markets can be very volatile and periods of significant share price weakness may not reflect the true underlying value of a business. Such times can often provide opportunities to add to our holdings in companies we continue to believe have excellent long term prospects.
From time to time, some companies in the portfolio will no longer meet our investment criteria. This situation usually arises because of a change in the long term fundamentals rather than cyclical fluctuations or a specific event. In these cases we will act to sell such stocks from the portfolio.

The process for monitoring our investments involves a number of activities:

  • Face to face meetings with key management in house. These meetings provide the opportunity to get a better understanding about the company’s business, culture, industry, long-term prospects as well as cross referencing other industry participants.
  • Management presentations with clients
  • Industry contacts
  • Feedback from broker research analysts
  • Internally generated research and analysis