1 Interactive Brokers, LLC (Interactive Brokers).
2 Interactive Brokers, Alluvium Asset Management Pty Ltd (Alluvium), Factset Research Systems, Inc. (Factset).
3 Sourced from Interactive Brokers and reduced by an assumed administration fee of 0.45% and a base management fee of 0.90% (both are inclusive of GST), as calculated by Alluvium.
4 MSCI World Net Total Return Index (AUD, unhedged), (Index or MSCI World).
5 Harry’s contribution to investment management is immeasurable.
6 In the case of “All Stocks”, the relevant indices are the MSCI World (AUD) and its regional constituents, and in the case of “Value Stocks”, the relevant indices are the MSCI World Value Net Total Return Index (AUD), (Value Index) and its regional constituents.
7 For “Australian Global Equity Products”, “All Stocks” refers to the average return of all global equity funds and “Value Stocks” refers to the average of the long only global equity funds that are identified as “Value” (Morningstar, Inc.). These are gross returns whereas the Strategy returns are quoted net of management fees.
8 Company names have been abbreviated throughout this document in the interest of readability. Should readers wish for more detailed information, please feel free to contact Alluvium.
9 Economic and Market Perspective, 11 January 2016, Wells Capital Management, Inc.
10 Current Market Volatility: A Return to an Appreciation of Risk, September 2015, Gotham Asset Management, LLC.
11 EV refers to Enterprise Value. Alluvium defines EV as the market value of a company’s equity plus the book value of its gross debt. EBIT refers to earnings before interest and tax. NPAT is net operating profit after tax. FCF means cash flow from operations less capital expenditure. Return on invested capital refers to EBIT as a percentage of the average capital invested in the business operations (as defined by Alluvium).
12 Piotroski score is a discrete score between 0 and 9 which reflects nine criteria used to determine the strength of a firm’s financial position.