(L to R): Michael O’Neill & Tuan Luu

IML’s Equity Income Fund (the ‘Fund’) is now available to trade via the ASX, after launching yesterday as the Investors Mutual Equity Income Fund – Complex ETF (ASX: EQIN).

The new, actively managed ETF aims to deliver Australian retirees and income-focused investors access to steady income generated through a diverse range of sources. It invests in stocks with sustainable and often growing dividends, and employs conservative options strategies to take advantage of share market volatility to enhance income.

The launch comes at a pivotal moment for Australia’s retirement system, which now holds more than $4 trillion in superannuation assets and is projected to be the second largest in the world by 2030. With Australia’s superannuation system transitioning hundreds of billions into the pension phase over the next five years, demand is growing for income-focused strategies like IML’s Equity Income Fund and ETF.

The ETF is a new class of units in the IML Equity Income Fund, which has built a 14-year track record of delivering consistent income with lower volatility since its inception in 2011. Over this period, the Fund has achieved an average annual income of 9.4% (including franking), compared with 5.9% from the ASX 300 Accumulation Index (including franking). Its objective is to provide income at least 2% above the ASX 300 on a rolling four-year basis, while maintaining lower volatility than the broader market.*

Speaking about the newly launched ETF, IML Portfolio Manager, Michael O’Neill said: “It’s becoming harder and harder for people to get consistent income to fund their retirements with interest rates and ASX dividend yields falling (particularly for banks and resources sectors), and bank hybrids being phased out. This fund fills that gap for retirees, giving them consistent income with lower volatility that they can rely on.”

Tuan Luu, Portfolio Manager at IML said: “Our process of researching and investing in companies is disciplined in order to achieve sustainable returns with lower volatility. We apply a prudent options overlay to diversify our available sources of income, which is particularly helpful when the market is more volatile.”

IML is an affiliate of global multi-affiliate manager Natixis Investment Managers. It is a quality and value style Australian equities fund manager with a single-minded focus on achieving attractive long-term returns for clients, with lower volatility than the market. Since 1998, IML has used deep fundamental research to uncover high-quality companies trading at reasonable valuations. IML (AFSL 229988) is the issuer of the Fund and ETF.

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Simon Conn

IML, specialist Australian Equities Fund Manager, has announced that Simon Conn, Senior Portfolio Manager for its small–mid cap strategies, will retire in June after 27 years of service.

Simon Conn joined IML in 1998 as one of the founding members of IML’s investment team and has led the small and mid-cap portfolios for 25 years. He will retire at the end of June 2025, remaining as a consultant until the end of September 2025. 

IML CEO Damon Hambly said, “Simon’s dedication and expertise has been an asset to IML, the team, and our valued clients for 27 years, and it’s with gratitude that we sincerely wish him a happy retirement. Simon’s leadership of the team, and our considered approach to succession planning ensures that our portfolios will continue to be managed in the same disciplined manner that we applied since inception, focusing on quality companies trading at reasonable valuations”.   

IML portfolio manager Marc Whittaker will assume leadership of the small and mid-cap team from the end of June after jointly managing IML’s small–mid cap portfolios with Simon for eight years. Marc will be supported by Australian Smaller Companies co-portfolio manager Lucas Goode who joined IML in 2018, and the broader IML investment team. 

Senior Portfolio Manager Simon Conn said, “It’s with great confidence that I retire, leaving the small and mid-cap portfolios in the very capable hands of Marc and Lucas. My decision was made with much consideration after what has been a very fulfilling career at IML. Clients can rest assured that I believe that there’s no better time to pass on the baton. The team have demonstrated their ability to manage the funds in line with IML’s disciplined investment approach over several years.” 

Marc Whittaker, who joined IML in 2016 and currently co-manages the Future Leaders and Private Portfolio funds said, “I’m grateful to Simon for his mentorship over the years, instilling the IML ‘quality and value’ approach into everything we do for our clients. It’s been an honour to work alongside Simon, and I’m thrilled to step into this new role, leading the IML small and mid-cap team.” 

Prior to IML, Marc spent 6 years as a portfolio manager at Milford Asset Management and has been working in Australian equities since 1999.  

IML’s flagship small cap fund, the Investors Mutual Australian Smaller Companies Fund, has delivered above-benchmark returns while delivering less volatility than the small cap market since its inception in June 1998. 

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The Quoted Managed Fund is a separate class of units in the unlisted Concentrated Australian Share Fund, a Morningstar Gold-rated, high conviction fund that invests in a select group of 20-30 high-quality, undervalued companies listed on the ASX. It has been managed by Hugh Giddy since the fund’s launch in 2010.

Hugh has worked in financial markets since the 1990s, honing his craft with some well-known investors including Allan Gray, Anton Tagliaferro and Kerr Neilson. He is supported by a team of 10 portfolio managers and analysts who undertake rigorous fundamental analysis on every stock in the fund.

IML Chief Executive Damon Hambly says the listing is due to client demand.

“We continue to hear from our clients that they want choice. Choice not only in the assets they invest in, but also the way they invest. We are offering the Concentrated Fund as an active ETF to suit our financial adviser clients that like to invest this way, as well as retail investors who manage their own portfolios.

“As passive investing continues to rise in popularity we are seeing an increasing demand for funds like the Concentrated Fund that offer something significantly different to passive index investing.”

Hugh says he enjoys the constraint and rigour required in choosing a concentrated portfolio.

“Due to the small number of stocks in the fund I select from among the highest quality companies on the ASX, and those I can buy at a reasonable price. The quality of the stocks has meant the fund tends to drop less than the benchmark in tough times, only falling half as much as the benchmark on average*. Low drawdowns have contributed to the fund outperforming over the long term, despite the fund sometimes lagging more frothy markets. Because the fund performs quite differently to the benchmark, it offers diversification benefits for investors while still investing in Australian equities.”

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Damon Hambly

IML’s two flagship funds, the Australian Share Fund and Australian Smaller Companies Fund, this month celebrate a 25-year track-record of delivering better returns than their benchmarks, with better downside protection and lower volatility^[1].

The funds launched on June 30, 1998, in the same year Anton Tagliaferro founded IML, with a singleminded focus on providing attractive long-term returns for clients, with lower volatility than the sharemarket. IML has achieved this by consistently investing in high-quality businesses that are undervalued by the market.

The Australian Share Fund has returned 9.8% per annum since 1998, after fees, 1.3% above its benchmark while, on average, falling 35% less than the market on months when it falls. $10,000 invested with the fund in 1998 would now be worth $103,757 after fees, $26,783 more than its benchmark^[2].

The Australian Smaller Companies Fund has returned 12.3% per annum since 1998, 6.7% above its benchmark while, on average, falling 54% less than the market on months when it falls. $10,000 invested with the fund in 1998 would now be worth $179,779 after fees, $140,960 more than its benchmark^[3].

IML Chief Executive Damon Hambly, says that IML’s investment philosophy is just as relevant today as it was in IML’s early days: “IML’s style of investing is particularly well suited to periods of higher sharemarket volatility and economic uncertainty, like we are experiencing right now. We have a strong track record of both protecting clients’ capital during market declines and delivering returns with lower volatility. We are also proud of our history of active ownership – of standing up for shareholders, and challenging boards and senior management when we believe shareholders’ best interests are not being served.”

Back in 1998 Google was founded, the ‘Tech Boom’ was in full swing and unprofitable dot.com stocks were becoming all the rage. It was a tough time to attract investors to a value and quality fund. It wasn’t until the ‘Tech Wreck’ started in March 2000, and share markets plunged around the world, that many investors started returning to investment fundamentals. In 2002, as the fallout from the Tech Wreck continued, the ASX 300 fell 8.64%, while IML’s Australian Share Fund was up 4.25%.

Simon Conn is Senior Portfolio Manager for the Australian Smaller Companies Fund. He has been at IML since the company launched, working with Anton to put in place the investment processes and frameworks that continue to this day. Speaking about the fund’s 25th anniversary, he said: “New funds are launched all the time, so to have achieved such a great track record of returns over 25 years is a real vindication of our investment style. What is more satisfying to me than the numbers though, is the way these returns have been delivered.

There are a lot of low-quality companies in the smaller end of the market, so our disciplined focus on quality companies with a strong competitive advantage, recurring earnings and capable management which are trading at reasonable prices has helped us grow capital over time, while protecting our clients’ capital during more difficult times.

Another pleasing outcome of the fund has come from our focus on profitable companies that pay dividends, this has allowed the fund to continually generate income from its underlying investments and enabled us to pay a distribution every six months since 1998.

I’d like to thank all of our clients who have trusted us with their hard-earned savings for so many years, we hope you will continue to trust us for many years to come.”

Daniel Moore and Hugh Giddy are the portfolio managers for IML’s Australian Share Fund, both joining the firm in 2010. Commenting on the fund’s anniversary Hugh said: “It’s a responsibility that Daniel and I take very seriously, managing a fund with such a long, proud history that has played a key role in many of our clients’ investment portfolios.

I think the key to our success over so many years has been sticking to the investment philosophy that we know works – our relentless focus on both quality and value – while at the same time continuing to improve our investment processes.”

——–

Notes:
[1] Benchmark for the Australian Share Fund is the ASX 300 Accumulation Index and benchmark for the Australian Smaller Companies Fund is the ASX Small Ordinaries Index, excluding property trusts. Stats are from 1 July, 1998 to 1 July, 2023. Sources: Morningstar Direct, IML. Past performance is not a reliable indicator of future performance.
[2] Ibid.
[3] Ibid.

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Anton Tagliaferro

Anton Tagliaferro, one of Australia’s most highly respected value-style fund managers, today announced that he will retire from Investors Mutual Limited (IML) in 2023.

Anton’s retirement in March 2023 will coincide with the 25th anniversary of IML which he founded with the purpose of creating a research-driven value fund manager focused on building portfolios of Australian companies that represent both ‘quality and value’.

Originally from Malta, Anton arrived in Australia as a Chartered Accountant in the 1980’s and was soon drawn to the sharemarket joining Prudential in 1986 before moving to Perpetual in 1988. At Perpetual, Anton was responsible for managing the long-standing Industrial Share Fund and launching it to the public in October 1989.

Commenting briefly on his decision, Anton said “I believe that now is the right time to hand over to the next generation at IML.  I know I leave our clients in safe hands with every confidence in the team’s ability to generate healthy returns moving forward.”

The announcement follows a well-planned and executed succession plan by IML, one that positions it for the future while ensuring continuity of the firm’s approach to investing. In 2017, Natixis Investment Managers (Natixis IM), a top 20 global investment manager acquired a majority stake in IML. In 2021, Damon Hambly was appointed IML’s Chief Executive Officer having previously held the position of Natixis IM CEO of Australia. Hambly has served as an IML director since 2017 and as an executive director working alongside Anton since 2020.

Commenting on the announcement, Hambly said, “I would like to thank Anton for his significant contribution to IML. Under Anton’s leadership, IML investors have benefited from the consistent and true-to-label ‘quality and value’ investment style that Anton has embedded into the business. While in some ways it is the end of an era, we are pleased that Anton is handing over to an experienced team of investors who have all been working with him at IML for well over a decade.”

“I would like to thank all of our clients who have supported IML over the past 25 years. Without you I would not have had the opportunity to do what I was passionate about every day.” said Anton.

IML’s flagship fund, the Investors Mutual Australian Share Fund, has delivered above-benchmark returns with less volatility than the Australian sharemarket since its inception^[1].

———-

[1] As at 30 July 2022. Fund returns are calculated net of management fees, and assuming all distributions are re-invested. Investors should be aware that past performance is not a reliable indicator of future performance. The benchmark for the Investors Mutual Australian Share Fund is the S&P/ASX 300 Accumulation Index (ASX300). Inception date: 30 June 1998.

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Michael Bowen

Investors Mutual Limited (IML) is pleased to announce the appointment of Michael Bowen as Relationship Manager, Strategic Groups. Michael has assumed responsibility for IML strategic relationships with national advice groups and stockbrokers.

Established in 1998, quality and value manager IML is an affiliate of Natixis Investment Managers, one of the world’s largest asset managers with approximately US$1.4 trillion in AUM (as at June 30, 2021). IML offers a range of funds across large, mid and small caps, equity income and absolute return, as well as managing listed investment company QV Equities.

In addition to its own Australian equity funds, IML has partnered with fellow affiliate Loomis Sayles to launch the Loomis Sayles Global Equity Fund and more recently, the Loomis Sayles Global Equity Fund (Quoted Managed Fund, ASX:LSGE) active ETF. ”

It’s great to add someone of Michael’s calibre to our team,” said Wayne McGauley, Head of Retail at IML. ”As we continue to bring Natixis affiliate managers, such as Loomis Sayles, to expand our offering to the Australian investment advice market, Michael’s previous experience with private wealth networks, brokers, and national dealer groups, is an important inclusion.”

Michael, who joined IML this month, said “It’s an exciting time to be joining to contribute to the firm’s growth plans. I look forward to servicing IML’s key accounts with the suite of Australian equity fund offerings, as well as introducing Loomis Sayles and other affiliates to the various markets around the country.”

Michael joins IML from global wealth manager PineBridge Investments, where he was Vice President, Wholesale and Private Wealth, responsible for initiating relationships with asset consultants, brokers and private wealth networks across Australia and New Zealand.

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Anton Tagliaferro

Anton Tagliaferro, Investment Director, and the investment team at IML reflect on 20 years of ‘quality and value’ investing and lessons learnt in Australian equities.

Investors Mutual Ltd (IML) is pleased to announce that 2018 marks 20 years since it started managing money for clients in Australian equities using its quality and value approach. From the tech boom to the tech wreck, through the credit crunch of the GFC to unprecedented quantitative easing and easy money, IML has endured and overcome countless changes, trends and fads.

Setting up as an ‘out of touch’ fund manager

IML founder, Investment Director and Aussie equities investor, Anton Tagliaferro, commented on the 20-year anniversary of the business he created in May 1998, just as the dot.com boom was taking hold of global share markets.

“It was something of a baptism of fire in the beginning. Markets were running hot on the back of a boom in technology stocks, many of which were purely speculative. At the time, our approach of only owning well-established, quality companies at a reasonable price looked very much out of style – in fact many labelled IML as old-fashioned or out of touch with where the economy was going. It was a challenging time for IML, but our investment approach was well vindicated when the technology sector collapsed and within six months the markets went from a ‘tech boom’ to what the media began referring to as the ‘tech wreck’.” said Mr Tagliaferro.

A first in Australia: 20 lessons from 20 years of investing

Mr Tagliaferro said that IML has always had a clear investment philosophy which it has adhered to through the many market cycles of the last 20 years.

“In the last 20 years, we have seen many cycles and gyrations in the share market – starting with the tech boom and bust in IML’s early years to the last decade where we saw share markets falling heavily through the GFC. We’ve seen the Euro crisis with subsequent recoveries in markets as Central Banks cut interest rates to record lows and engaged in quantitative easing.

“Standing consistently by our quality and value investment philosophy of only buying companies with competitive advantage, recurring earnings and capable management at a reasonable price has made IML the company it is today.

“To coincide with IML’s 20-year anniversary, the IML investment team has put together what we believe are the 20 most important lessons gleaned from our experiences of investing in the ever-changing markets of the last 20 years.

“These 20 lessons are being released progressively – we believe they are the first of their type that have been put together in Australia, and that they will be of great interest and use to the many investors who are trying to manage their money in what is an increasingly volatile environment.’ said Mr Tagliaferro.

“The current environment is a challenging one for investors – with lots of liquidity floating around and with the valuation of many stocks, until recently, pushed to very high levels. In addition, the increasing size and influence of quant funds is prompting many very large short-term share price movements often on the back news which is largely irrelevant to many companies long-term fundamentals.

“Despite the volatility and changing market dynamics, we continue to focus on value and quality stocks in a disciplined and systematic way and continue to identify companies with a strong competitive advantage, with recurring earnings, run by capable management that can grow, at a reasonable price – which is what we have focused on since our inception.’

“At this 20-year anniversary, we would like to thank our investors for their continued trust in us, and we look forward to delivering the same level of consistent returns to all our investors in the next 20 years.” Mr Tagliaferro said.

IML’s 20-year anniversary client functions and roadshows commence this week. Investors and advisers can subscribe to the 20 lessons from 20 years series of lessons at https://www.iml.com.au/20-lessons

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Anton Tagliaferro

Australian equities specialist, Investors Mutual Limited (IML), has been awarded a Small Caps allocation / model portfolio inclusion by multi-manager, Alpha Fund Managers.

The IML Small Cap Fund aims to deliver investors with consistent and long term returns by investing in quality small cap companies aligned to their investment philosophy, that is; companies pertaining a competitive advantage, with recurring earnings, run by capable management, that can grow, whilst trading at a reasonable price.

In awarding the allocation, Julien Brodie, Portfolio Manager at Alpha, said, “We selected the IML Small Cap Fund because of the quality and insight of the investment team, defensive characteristics and importantly its ability to navigate market rotations (such as during 2016) and deliver consistent outperformance across time.”

Simon Conn, IML’s Small & Mid Cap Senior Portfolio Manager said, “We are delighted that Alpha has chosen to add our Small Cap Fund to their clients’ portfolios. IML will aim to deliver their clients with consistent capital growth over the long term with lower volatility, as has been the hallmark of all IML funds since our inception in 1998.”

Anton Tagliaferro Investment Director of IML added: “We thank Alpha for their support and faith in IML’s process following their comprehensive due diligence process and we are pleased they have chosen IML as they understand and are aligned to our investment philosophy and process”.

The allocation follows IML recently being awarded Morningstar’s Small Cap Manager of the Year, along with their strong research house ratings across all strategies.

At the end of June 2017, the Fund delivered investors 14.8% p.a., 17.2% p.a. and 18.1% p.a. over one, three and five years’ net of fees, respectively.

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IML has successfully managed money on behalf of our clients in Australian equities, including the small cap sector, for almost 20 years and has built a track record of good consistent returns over different market cycles in this area.”

IML’s portfolio manager for IML’s small and mid cap strategies, Simon Conn who has been an integral part of the investment team since its inception in 1998 said “it is critical when it comes to investing in the small and mid cap part of the market to perform one’s own detailed research and to remain disciplined in all market conditions.

Since IML’s inception almost 20 years ago, there has been lots of volatitity in the equity market with several booms and busts over this period.

We have managed to steer our way through all this by always retaining our focused and disciplined process and have done a very good job for investors over the long term.”

Simon added “We always focus on companies which have a competitive advantage, recurring and predictable earnings, that are run by capable management and which can grow over the long term. In the uneven and subdued economic environment of recent years we have focused mainly on companies that we believe can continue to generate reasonable earnings growth through a diverse range of strategies such as growing market share, through making accretive acquisitions or through cost cutting or restructuring programmes.”

Anton concluded by saying: “Our clients should always know what to expect when they invest in an IML Fund – which is a diverse portfolio of good quality listed Australian stocks whose medium to long term earnings prospects look good and whose valuation we find appealing.”

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Prior to joining IML, Marc was employed as a Portfolio Manager at Milford Asset Management for 6 years with responsibility for their Australian equity portfolios. Before working at Milford, Mark worked for 7 years at Lazard Asset Management as a Senior Industrials Analyst.

Anton Tagliaferro said; “We are very pleased to have appointed someone of Marc’s calibre and experience to IML. This senior appointment is another important step in broadening and deepening the strength and experience of IML’s investment team, particularly in the small cap sector where we are experiencing good growth thanks to continued retail inflows and an increasing institutional following.

“Marc comes to IML with a strong numerate background and excellent portfolio management and research skills from his many years experience working at other respected value managers. This makes Marc well suited to a career at IML and Simon is delighted to have Marc assisting him in the small cap sector.”

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