Who owns DMPAM?
DMPAM is wholly owned by SG Hiscock & Company Limited.
What services does DMPAM offer?
DMPAM offers a range of services to wholesale clients in the fields of Australian equities, Australian hybrids (preference shares and income securities) and Australian corporate bonds and term deposits. All client assets are managed within individual portfolios, specifically constructed to each client's risk/ethical profile.
What is the definition of a wholesale client?
The Corporations Act 2001 defines a wholesale client as one who invests $500,000 or more and/or an investor who has an accountant's certificate certifying that they have an annual income in excess of $250,000 or net assets in excess of $2,500,000.
Does DMPAM have an Australian Financial Services License?
Yes. DMPAM was issued with AFSL 383580 on 14 December 2010 which was updated on 17 April 2018. DMPAM is authorised to provide general financial product advice to retail and wholesale clients.
What is DMPAM's investment philosophy and style?
DMPAM has been using the same philosophy and style for 25 years. While there have been enhancements from learnings over this time, the core tenants remain the same and have been proven to deliver strong risk adjusted returns for clients through the cycle.
Active management via careful consideration of both thematic influences and bottom up stock selection can lead to the delivery of superior risk adjusted returns and outperformance of targeted performance hurdles.
Our portfolios will demonstrate growth characteristics. Attributes that we like in stocks include growth in excess of the market in:
Earnings Per Share (EPS); and/or
Operating Margin; and/or
Return on Invested Capital (ROIC); and/or
Net Profits after Tax.
Thematic influences and macroeconomic factors help drive our investment research by highlighting companies we expect to demonstrate growth characteristics. Central to our approach is detailed fundamental bottom up stock research, including analysis of management, industry, ESG considerations and the financials of a company. All of these factors are considered in stock selection and portfolio construction.
When investing, DMPAM is benchmark unaware, preferring to focus on stocks likely to outperform for investors. While we are a growth investor, considerations of price are employed to ensure discipline in the process.
How does DMPAM construct a portfolio to suit my needs?
The construction of your portfolio is determined by an analysis of your risk appetite in conjunction with your income and capital return requirements. We also incorporate your personal ethical screens to ensure investments are aligned with your ESG beliefs. At all times, the tax status of your investments is integral to the ultimate construction of your portfolio.
In order to ensure that we have correctly understood your requirements, we establish a Record of Mandate for your consideration and agreement prior to commencing the management of investments on your behalf. It includes information about fees and commission and any interests or associations which might influence our advice.
This Record of Mandate is reviewed on an as needs basis.
What is DMPAM's investment process?
The overall schematic outlines our investment process.
Does DMPAM include ESG in its process?
ESG is considered in all aspects of our process for all of our clients. Initially it helps define the investment universe by eliminating stocks which we consider uninvestable on ESG criteria. The investment universe can then be refined further by individual clients by implementing negative screens on stocks to reflect their ethical views.
Importantly, ESG is considered for all stocks in our bottom up stock research and impacts both stock selection and portfolio construction by its influence of the forward looking risk adjusted return of a stock.
We actively vote on stocks where we have a strong view on the governance matters at hand. We also seek to actively engage with the management and Board to exert influence on behalf of shareholders.
We are a proud member of RIAA and the Board has agreed an intention to become a signatory to the UNPRI.
Here is a link to DMPAM’s ESG Policy.
Who manages my portfolio?
DMPAM has its own funds management team which is responsible for the management of your portfolio(s). The team is deliberately set up to ensure that you have direct access to the fund manager responsible for the day to day management of your portfolio.
Who has the custody of my DMPAM managed assets?
DMP uses the services of OneVue, a professional portfolio administrator, listed on the ASX. All client assets are held by Citicorp Nominees pursuant to a Custody Agreement.
Does DMPAM compare returns to a benchmark?
DMPAM measures performance relative to agreed benchmarks for all individual client portfolios.
How does DMPAM focus on "gross of franking credit" returns to benefit investors?
DMPAM constantly monitors corporate activity in the listed sector which involves the payment of fully franked dividends as part of the capital management initiative. Likewise DMPAM looks for undervalued franking credits implicit in regular dividend payments.
How do I receive the franking credits you generate on my behalf?
Franking credits are reclaimed on lodgement of your annual tax return as an offset against your taxation liability, which may or may not result in a refund. In the case of charitable organisations, a refund of franking credits is received after lodgement of an annual return with the ATO.
What are hybrid securities?
Hybrid securities (which incorporate preference shares and income securities) are income-style securities issued by companies and have the characteristics of both equity and debt. The hybrid securities in which DMPAM invests are listed, tradeable on the ASX and are not over-the-counter style securities. Hybrid securities rank ahead of the company's ordinary equity with regards to payment of distributions. Typically, they are issued at a face value of $100 with a set "maturity date" and a stated distribution rate. This distribution rate is either fixed or floating (over the Bank Bill Swap Rate). At the maturity date, the issuer typically has the option to either redeem the security at face value, convert it into ordinary equity or "step up", meaning the maturity date will be pushed out into the future but the distribution rate will increase. Each hybrid security is different with regards to its terms and DMPAM researches these thoroughly prior to any investment.
Can I change my risk profile at any time?
You can change your risk profile at any time. This typically occurs after a discussion with your fund manager who will then furnish you with a new Record of Mandate which is designed to ensure that we have captured all your new/changed investment objectives. Once you have reviewed and agreed on the new Record of Mandate, the new risk profile will be implemented across your portfolio.
When and how can I submit or redeem funds?
Clients can submit new or redeem existing funds at any time. All movements of funds require notice in writing from you, signed in accordance with the authority provided to us by you. Any withdrawal of funds that requires the sale of assets may take up to five business days to complete. Additional Application Advice and Redemption Advice forms for the Tailored Portfolio Service are also available under the Forms and Publications tab on our website. These forms can be completed either online or manually, printed, signed and returned to DMPAM as per the instructions therein.
Does DMPAM charge entry or exit fees?
Can I set up a regular payment schedule for my income requirements?
Yes, you can set up a regular payment schedule to meet your income requirements.
When are tax statements made available?
Tax statements are sent to you around 30 September each year.
How do I change my details?
You can change your details by sending a written request to us by email to firstname.lastname@example.org, by facsimile to 03 9981 3399 or by mail to Level 28, 367 Collins Street, Melbourne Vic 3000. Your request needs to be signed in accordance with the authority provided by you for the change(s) to take effect.
How often do I pay fees?
Fees are deducted from your portfolio(s) on a quarterly basis, in arrears.