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Investment Portfolios

Fat Prophets Concentrated Australian Shares Portfolio

The long-standing Fat Prophets Concentrated Australian Shares (CAS) Portfolio has been a stand-out performer and is a raw representation of the Fat Prophets investment philosophy. Due to the broad mandate, in this model we are able to seek high risk-adjusted returns from all corners of the ASX.

The CAS model seeks to outperform the total return of the S&P/ASX 200 Accumulation Index. We established this portfolio in May 2007 to offer our investors the option to gain exposure to a conservative, but actively managed portfolio without the day-to-day maintenance and research that usually comes with it. Some of our experienced investors use the managed accounts to diversify their own investment strategies.

A glimpse of our allocation to the various sectors shows a careful and calculated approach to portfolio construction of which many underestimate the complexity. Selective exposure to blue-chips, along with high-quality mid-tiers and growth companies across a broad number of sectors has allowed the CAS model to outperform the S&P/ASX 200 Accumulation Index on both a gross and net basis since inception.

The CAS model is mandated to hold no more than thirty companies. This allows us to provide a portfolio that is diverse, but also concentrated. We are constantly reassessing our holdings and making tough decisions on what to add and what to drop from the model. We are committed to only holding our highest conviction ideas in the model because the opportunity cost is great for holding a non-performer.

Plese see the recent performance of this portfolio:

Term1 Month3 Month6 Month1 year2 years
Fat Prophets Concentrated Australian Share7.89%6.36%0.56%5.42%4.54%

Fat Prophets Australian Shares Income Portfolio

We also offer a model portfolio that is dedicated to finding companies that pay steady dividends to provide clients with a consistent income stream and access to franking credits. The income portfolio is conservative and diversified with up to 40 companies being held in the portfolio covering many sectors of the Australian market that will vary depending on our macro view.

A common mistake for investors seeking income is complacency. Whilst trading and capital gains are not the goal, it is still very important to constantly monitor the portfolio to avoid situations where a cut of the dividend leads to loss of income and loss of capital as well.

The flexibility of our Managed Accounts product makes it compelling for our income seekers. A monthly dividend sweep allows us to pay any dividends out on a monthly basis to our clients’ nominated bank account so no need to wait for a half-yearly distribution. Our clients can also set a monthly payment from the portfolio if they require more than just the dividends. This requires selling shares which would normally not be practical; however, our wholesale brokerage rates make this cost effective.

Of course, our clients do not need to receive payments from the portfolio. Some of our investors prefer to allow their returns to accumulate by reinvesting their dividends back into the portfolio.

Please see the recent performance of this portfolio:

Term1 Month3 Month6 Month1 year2 years
Fat Prophets Australian Share Income Portfolio3.93%7.75%4.12%14.80%12.74%

Fat Prophets Global Opportunities Portfolio

For those investors who already have exposure to Australian equities, an investment in our Global Opportunities Portfolio may suit. International equities should generally be held in some proportion in a balanced portfolio to improve diversification and consequently reduce volatility.

The Global Opportunities Portfolio was launched in March 2013 to give clients exposure to the many opportunities that exist overseas. There are several barriers to entry when it comes to international investing. Purchasing international stocks can carry high costs and high risks due to lack of expertise in foreign markets. Fat Prophets draws on years of experience and deep market insights to deliver a truly unique international investment offering.

The current allocation of the Fat Prophets Global Opportunities Portfolio reflects our contrarian view toward China and Japan, as well as our cautious outlook toward the Unites States’ stock market that we believe is fully valued.

After identifying what we believe to be the key macro trends (on a 3-5 year horizon), we then use our bottom up approach to selecting individual companies with high prospects for future growth. The Global Opportunities Portfolio, like our other portfolios is influenced by our value bias and has a focus on top-50 companies on international exchanges for a more conservative approach.

The GOP model is a higher risk portfolio that our CAS and ASI models due to the additional exposure to global currencies that are unhedged, which may work for or against you.

Please see recent performance of this portfolio:

Term1 Month3 Month6 Month1 year2 years
Fat Prophets Global Opportunities Portfolio5.55%5.91%7.03%15.09%15.49%

Fat Prophets Mining and Resources Portfolio

For those with an appetite for risk, our Mining and Resources Portfolio offers focused exposure to Australia’s diggers and drillers. This model is not intended to comprise our clients’ entire equities exposure; rather to provide means by which they can obtain high quality exposure to the mining and resources space and have that exposure actively managed by Angus Geddes and the Fat Prophets team.

The Mining & Resources portfolio is our oldest portfolio and following the impressive rise from late 2008 to early 2011, the sector has since been under significant pressure.

Not for the faint of heart, it takes a brave soul to go against the crowd and pick up the shares that have been out of favour for so long.

Fat Prophets Small and Mid-Caps Portfolio

Picking small to medium cap companies can be a mugs game. Most such Companies are poorly covered by the investment banks and brokers making it hard to find reliable analysis on them. Finding truly objective research is even harder as in many cases what coverage exists is either linked to the provision of past or future corporate advice or directly paid for by the Company. Also the numbers are only part of the story. Often the future success of these companies has more to do with the people who are running them rather than their past trading performance so getting to know them is often key to picking the best stocks.

There is no doubt that an investor is taking on additional risk when investing in small and medium cap stocks compared to putting their money into well-known blue chip stocks like Woolworths or Commonwealth Bank.

Please see recent performance of this portfolio:

Term1 Month3 Month6 Month1 year2 years
Fat Prophets Small & Mid Cap Portfolio7.63%7.10%2.57%11.71%7.16%

Fat Prophets Asian Portfolio

For investors seeking to diversify beyond traditional markets, the Asian Portfolio provides access to one of the world’s fastest-growing regions. Asian equities offer significant growth potential and valuable diversification benefits for a balanced portfolio. The region’s low sensitivity to US interest rates provides added stability amid monetary policy changes, making it an attractive option for long-term investment.

The portfolio focuses on high-growth sectors such as internet and consumer markets, which have consistently demonstrated robust performance. Additionally, rising consumer confidence, supported by regional stimulus measures, continues to drive increased economic activity and spending.

Aligned with our contrarian investment philosophy, the portfolio includes carefully selected stocks from top-performing Asian markets and sectors, offering a unique opportunity to capitalise on the region’s dynamic growth potential.

Please see recent performance of this portfolio:

Term1 Month3 Month6 Month1 year2 years
Fat Prophets Asian5.99%2.54%2.75%8.88%14.77%

Find out more

If you would like to know more about our wealth management services and performance figures, please contact our Wealth Management team:

Email: wealth@fatprophets.com.au
Phone: (02) 9024 6700

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