Frequently Asked Questions
DMP 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.
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.
Yes. DMP was issued with AFSL 383580 on 14 December 2010 which was updated on 17 April 2018. DMP is authorised to provide general financial product advice to retail and wholesale clients.
In March 2019, DMP merged with SGH to form an investment management organisation with substantial experience, shared cultures and complementary strengths in investment management, research and managing bespoke private client portfolios. Both businesses retain their separate AFSL licenses and brands to ensure a clear focus on the two pillars of business within the merged entity, namely Institutional mandates and retail unit trusts (SGH) and wholesale tailored portfolio services (DMP).
DMP has been using the same philosophy and style for over 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:
- Revenue; and/or
- 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, DMP 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.
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.
The overall schematic outlines our investment process.
Here is a link to SG Hiscock Group Environmental, Social and Governance Policy (ESG Policy).
The purpose of this document is to articulate the SGH Group (SGH) policy in respect of appropriate Environmental, Social and Governance (ESG) investment practices. SG Hiscock & Company Limited and its subsidiary, DMP Asset Management Ltd, are collectively the SGH Group (the SGH Group, SGH or the Company).
The broader context for this is the recognition within the investment community that individual and institutional investors can and should use ESG criteria to assess risks and opportunities fully – the investment process should include consideration of all relevant risks and opportunities, including where appropriate, ESG factors. SGH believes that companies need to have a social licence to operate and good ESG policy enshrines and promotes this requirement.
As a business, SGH takes ESG issues seriously. Although we are not a signatory to the Principles for Responsible Investment (PRI) (2006), SGH recognizes that the PRI provide a useful framework to assist investors in considering these issues.
Investment mandates may impose specific investment criteria as to ESG matters. In such instances, SGH applies the specific criteria in investment selection as well as our approach to ESG as outlined in this policy. DMP Asset Management Ltd is a member of the Responsible Investment Association Australasia (RIAA) and its Portfolio Service is credited by RIAA.
DMP 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.
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.
Unlike many mangers, DMP focuses on client outcomes and the risk and consequences of not achieving those outcomes.
DMP constantly monitors corporate activity in the listed sector which involves the payment of fully franked dividends as part of the capital management initiative. Likewise DMP looks for undervalued franking credits implicit in regular dividend payments.
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.
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.
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.
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 (YB Note to Self: the words in blue need to be changed to refer to the page where these forms can be found. Don’t think we’ll have a Forms and Pubs page on the SGH website). These forms can be completed either online or manually, printed, signed and returned to DMP as per the instructions therein.
You can change your details by sending a written request to us by email to email@example.com, 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.