IOOF Multi Series Balanced Trust
Strategy Profile
Credit Suisse HOLT Australia Top 20 Custom Strategy
Credit Suisse HOLT Australia
Top 20 Custom Strategy
Investment style
At a glance
Date of appointment: 22 December 2011
Style: Neutral (Quantitative)
Funds allocated to manager: $25 million as at 30 June 2012
This strategy is managed by IOOF Investment Management
Limited and is intended to track the Credit Suisse HOLT Australia
Top 20 Custom Strategy which is created by Credit Suisse Securities
Europe Limited.
Company overview
Credit Suisse was founded in 1856 and is one of Switzerland's
oldest banks. It has private banking, investment banking and
asset management businesses with 48,700 employees in 550
offices over 50 countries (as at 30 June 2012). It has assets under
management of CHF 408 billion (as at 31 December 2011).
HOLT is an equity advisory service provided by Credit Suisse,
specialising in corporate performance and valuation. HOLT’s
analysis offers unique insights, emphasising a company’s cash
generating ability and overall potential for valuation creation when
it comes to stock selection. The HOLT framework has been used
for bottom up stock selection for inclusion in the portfolio, helping
to create superior risk-adjusted return potential over the long term.
Credit Suisse HOLT believes its ability to take a neutral view in
generating investment ideas using a very strong bottom-up
valuation discipline in selecting investments for inclusion in the
portfolio, creates superior risk-adjusted return potential over the
long term.
IOOF Multi Series Balanced Trust
Credit Suisse Holt Australia– Strategy Profile
Stock selection
Valuation
Credit Suisse HOLT undertakes a quantitative evaluation of each of
the top 200 Australian stocks ranked by market cap. The evaluation
looks at the three factors, with each factor weighted as follows:
• Percent Change to Best; the percentage difference between
the HOLT forecast value and the past week’s closing share price.
Factor
Operations
Momentum
Valuation
• Forecast Dividend Yield.
Weight
30 per cent
50 per cent
20 per cent
• Economic P/E
• Value Cost Ratio; Enterprise Value over Net Assets.
Portfolio construction
The three factors used by Credit Suisse HOLT can be summarized
as follows:
Stock universe:
Operations
• Only companies that have published earnings estimates are
recorded in the database.
Cash Flow Return on Investment for the last reported year. This
ratio measures gross cash flow to gross investments translated
into an internal rate of return recognising the finite economic life
of depreciating assets and the residual value of non-depreciating
assets. The better the return on investment, the higher the score.
• Top 200 companies by market capitalisation.
• Includes all active companies at the relevant point in time.
• Bankrupt and merged companies drop out of the sample
in the month they stop trading on the exchange.
Portfolio rebalance frequency: Quarterly rebalance.
Momentum
Number of stocks held: Twenty.
• Cash Flow Return on Investment momentum over 13 weeks.
Stock weights: Equally weighted at 5 per cent per stock.
• Three month Price Momentum.
Contact details
Telephone: 1800 002 217
Email: info@ioof.com.au
Web site: www.ioof.com.au
Important information
The Credit Suisse HOLT® Australia Top 20 Custom Strategy (‘Strategy’) is created by Credit Suisse Securities (Europe) Limited (‘CSSEL’). The Strategy (‘Reference Asset’) is the exclusive
property of the creator and is licensed to IOOF. Credit Suisse and its affiliates (‘Credit Suisse’) do not manage the assets of the Trust nor take the needs of any person into consideration
in composing, determining or calculating the Reference Asset. Credit Suisse makes no warranty or representation, express or implied, as to the results to be obtained from a Reference
Asset, nor as to its performance and/or value at any time (past, present or future).
CSSEL does not hold an Australian Financial Services Licence (‘AFSL’) and is exempt from the requirement to hold an AFSL under the Corporations Act (Cth) 2001 under ASIC Class
Order 03/1099 in respect of the financial services provided in relation to this agreement. CSSEL is regulated by the UK Financial Services Authority (‘FSA’) and laws of the United
Kingdom which differ from Australian laws. The rules of the FSA are not incorporated into this document.
CSSEL is not authorised deposit taking institution and the Reference Asset does not represent a deposit or other liability of Credit Suisse AG, Sydney Branch. Credit Suisse AG, Sydney
Branch does not guarantee any particular rate of return on, or the performance of either Reference Asset.
Important Note
Issued by IOOF Investment Management Limited (IIML) ABN 53 006 695 021 AFSL 230524.
This is a general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess
your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the Product Disclosure Statement available from us or your financial adviser,
before you acquire a financial product. Information is current at the date of issue and may change. Issue date: 30 June 2012.
PLA-4338
HOLT® is a trademark, service mark, registered trademark or registered service marks of Credit Suisse AG or its affiliates in the United States and other countries.