Patersons Asset Management

Patersons Asset Management is a dedicated asset manager providing investment solutions to Australian resident investors as well as offshore investors seeking access to specialist investment opportunities in Australia, particularly in resources and agricultural commodities.

At Patersons Asset Management we seek to provide investors with unique and exciting investment products where we can clearly add value through superior research and investment analysis.

Investors have the opportunity to invest via pooled investment funds or separately managed accounts under an investment management agreement.

Although steeped in the history of Patersons Securities Limited, which has been investing client funds in Australia since 1903, at Patersons Asset Management we operate independently with our own management team, investment team and investment process.

Patersons Asset Management has access to the full range of services offered by Patersons Securities including equities research, corporate finance, and back office and administration support.

The Patersons Securities Limited group currently has combined funds under management or administration in excess of $800 million dollars (as at 31st March 2009).

Research and Portfolio Construction

Our research and portfolio construction process is a 3 stage process involving:

Screening – we apply an initial quantitative screen considering both historic data and forward-looking analysis to the universe of stocks to narrow the universe down to create a Focus List of companies that we believe have the highest likelihood of significantly increasing shareholder value.

Research – we then undertake further detailed assessment to consider the investment strength and market value of stocks in the Focus List, resulting in a score being applied.  All stocks are then ranked according to their score, which is used to identify the relative attractiveness of one stock over another.

Portfolio Construction – finally we determine the number of stocks to be included in the portfolio as well as the appropriate weighting of each stock.  In developing and managing each portfolio, optimisation techniques are used to maximise the risk-adjusted returns of the portfolios.

The Patersons 80:20 Equity Fund

Our flagship Australian equity fund is the Patersons 80:20 Equity Fund, which is a core balanced portfolio that invests a minimum of 80% of its assets in ASX 200 stocks with up to 20% of its assets in smaller companies and growth opportunities outside the index, giving investors the opportunity to participate in event-driven investment opportunities that are usually only available to professional investors (such as IPOs and capital raisings).

This strategy has generally been followed in client managed accounts for the past 10 years with great success and is now available in a pooled investment fund.

ABN 68 009 226 386    AFSL No. 267 899