About Us

Armytage Private Proprietary Limited (Armytage) is a boutique investment management firm majority owned by members of its investment team and key executives. Armytage specialises in the active management of Australian equity portfolios and currently manages strategies on behalf of a wide range of investors including charitable trusts, corporations, superannuation funds, family trusts and individuals. Armytage is able to offer its investment capabilities through a spectrum of core Australian equity solutions:

  • The Armytage Australian Equity Income Fund;
  • Armytage Strategic Opportunities Fund; and
  • The Armytage Individually Managed Account (IMA) service for wholesale investors

Armytage also conducts regular information sessions for its strategic partners and wholesale clients. This involves regular macro reporting and live derivative trading sessions. Please contact us for more details.

Armytage Background & History

Armytage was established in 1995 as one of the first true IMA managers in Australia with the firm’s founding service being its successful discretionary portfolio management service for wholesale clients. In 2006, Armytage broadened its product and service line-up with the addition of two managed funds, the Armytage Australian Equity Income Fund and the Armytage Strategic Opportunities Fund, enabling greater retail access to the firm’s investment capabilities through financial intermediaries. Both funds are actively managed in line with Armytage’s fundamental value style of investing, with options used strategically to lower volatility/risk levels and enhance portfolio income. This approach provides the Armytage Funds with the platform to deliver strong and consistent distribution payments to investors, complementing the Investment Team’s overall stock selection and investment management decisions.

The firm’s key executives have remained at Armytage for over 10 years. It is Armytage’s philosophy to outsource all non-core administration to ensure staff are focused on delivering the highest quality investment research and client services. The firm prides itself on having a transparent model where clients have direct access to the individual managers.

The Armytage Australian Equity Income Fund and the Armytage Strategic Opportunities Fund are available through a number of leading administration/wrap platforms. Please contact us if you would like any further information on Armytage’s product line-up or how to access a particular investment strategy.

Learn more about:

mFund

Armytage is an mFund foundation member

Please find below the Fund profiles:

Armytage Australian Equity Income Fund – ACY01
Armytage Strategic Opportunities Fund – Wholesale Class ACY02

For further information, please visit http://www.asx.com.au/mfund/ 

Our Philosophy

Armytage is a Value manager with a fundamental investment approach designed to identify quality businesses trading at a considerable discount to valuation.

The process is guided by the following core beliefs:

  • Equity markets are not perfectly efficient and the true value of a business is not always reflected in its share price;
  • Undervalued stocks can be identified through active research and insightful analysis;
  • Capital preservation is critical to wealth creation; and
  • A relative-value approach to investing delivers a more consistent and superior risk-adjusted outcome than deep-value.

The companies that Armytage typically invests in are those with strong and reliable management, good profit and dividend growth expectations, reasonably predictable future profits and cash flows, and a very clear business model. In contrast, Armytage tends to avoid investing in businesses that lack pricing power in their relevant market, or those that are higher risk, early-stage research and development or exploration based companies.

A Four Stage Investment Process

Intensive bottom-up research is the cornerstone of the entire process supplemented by top-down economic and thematic views. The process is disciplined and consistently applied using a number of proprietary qualitative and quantitative techniques to ensure that targeted companies have been thoroughly scrutinised.

1. Defining the Investment Universe

The first stage of the process is to narrow the number of stocks in the investment universe by applying a number of screens.
This approach systematically eliminates companies that do not meet certain minimum standards, allowing the investment team to focus more intensely on companies of potential interest.

2. Bottom-up Fundamental Company Research

Armytage’s research programme is focused on understanding the key drivers of business performance and returns, namely people, operations, products and services and market dynamics. For companies remaining in the investment universe, Armytage undertakes a detailed assessment of executive management, interviews competitors and suppliers, reviews financials and forms a clear view on the outlook for the company’s industry.

3. Portfolio Construction

Risk management and capital preservation are key themes underlying the portfolio construction framework. With a focus on actively managing down-side portfolio risk for investors, Armytage constructs an efficiently diversified portfolio of high quality, undervalued companies, and invests for the long term (typically at least 3 to 5 years) in an effort to maximise after-tax returns.

During the portfolio construction stage, the Armytage Australian Equity Income Fund and Strategic Opportunities Funds also employ a lower risk options overlay to enhance the portfolio’s overall yield and reduce volatility relative to the market, providing a stable platform for the delivery of strong and consistent distribution payments to investors.

4. Exchange Traded Option Overlay

After a stock makes it through the above process and into the portfolio, we utilize the exchange traded options market in a low risk manner to increase portfolio yield. We sell stock specific calls (backed by the shares) and stock specific puts (backed by cash). This leads to a higher yield without increasing the overall market exposure. Given that we only write out of the money current month options, the risk of exercise is significantly diminished.

Learn More

Read the Armytage Executive Team Profiles.

Please contact us if you would like to speak to a member of the Executive Team about our investment products and services.

Find out about our Australian Funds , SMA Portfolios, Individual Managed Accounts.