10 things that set Talaria apart

March 2, 2020

Market corrections are often a time for investors to look more closely at their portfolio, and in particular who is managing it for them.  

A landmark research project from US based Capital Group helps identify the factors that set the best active managers apart, as reported by the Australian Financial Review.

Pleasingly at Talaria we are a match for this profile, with over 15 years of track record in creating wealth through a lower risk, income generating approach to global equity investing.

The paper’s author investigated actively managed funds in the US since 1934 to try to determine the factors which actually add value for investors, with four objectives in mind. Each factor needed to be:

  1. Predictive of future success, not just explain past results.  
  1. They needed to be stable over time.
  1. Robust – that is, they needed to work across different asset classes, time periods and market conditions.
  1. Intuitive.

The report divides their top 10 factors into two categories, Stewardship and Investment Process. Pleasingly, Talaria is highly aligned to the factors identified with investment success.  

Stewardship

Privately Owned

Higher Fund Survivorship

Low Expense Discipline

High ownership stakes

Longer Investment Orientation

The Investment Process

Holdings Turnover

Multiple-Manager System

Downside Protection

Disciplined Flexibility – a willingness to look outside the home market

Strategic Use of Cash

Read the full AFR article here.

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