Investment Philosophy
It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change”
– Charles Darwin
Renaissance seeks to invest in quality companies at a reasonable price whilst maintaining focus on companies that are most adaptive to the ever changing business and technological environment.
At Renaissance, we believe and invest in companies that are able to exploit their competitive advantages in which their goods and services earn a sustainable income over the capital they have invested.
Throughout the years, Renaissance has and continues to steer away from value-trap companies and focus on real fundamental value, strong balance sheets with sustainable earning growth and selling at reasonable price. We strive to take advantage of macroeconomic events to accumulate additional stocks on risk adjusted basis.
We follow Keynes’ and many other successful value investors’ philosophy when making long-term investments in companies.
“…As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.”
– Keynes
At Renaissance, we are focused on using a concentrated approach rather than overly diversifying our direct exposures. We believe an appropriate structure portfolio of 10 to 15 investments can provide sufficient diversification. However, some diversification of asset classes and securities is important to minimise non-systematic risk in portfolios. As such, we employ actively managed funds to gain exposures to a broader range of domestic equities as well as international equities.
Asset allocation is perhaps the most recognised method amongst the financial and broader community. Asset class returns can vary significantly, having a well-diversified portfolio and not putting your eggs in one basket can reduce non-systematic risk and provide you with ‘smoother journey’.
Investment Portfolio
At Renaissance, we ensure that the recommended investments and financial strategies address your specific needs and provide solutions to assist you in meeting your objectives for every life stage. We use the following steps:
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Understanding and Analysis
To understand and analyse your issues, expectations and goals to enable us to jointly establish an achievable framework and investment profile. This is essential for you to pass the “sleep test” with your strategy and investments program.
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Propose and Recommend
We propose investment solutions and relevant investment structures (such as company, trusts and SMSFs, if required) to the overall strategy. Your accountant and lawyer will work as a team with Renaissance to ensure the recommended strategies are in your best interest. This means you can make an informed decision based on the recommendations of your professional team.
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Implementation
Renaissance will select appropriate products from a wide range of financing and investment options, draw on in-house and external research houses and bring them together into a balanced and effective solution.
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Review
Ongoing review of your portfolio development is no less important than the initial asset allocation. Access to our reports is available online detailing portfolio valuation, asset allocation, capital gains/loss positions and income etc. If there are significant changes in the financial markets or particular investment holding, or if you have new goals or needs, we will review your situation again and adapt the strategy as required.
