Bellmont Securities

Bellmont was created because they believe investing and long term client objectives can go hand in hand.  A radical change from an industry dominated by short term incentives.  Almost all investors will have similar objectives – to build and accumulate wealth over time without exposing their money to risk of permanent loss.  Its achieving these objectives that drives everything Bellmont do.

Value investors at heart, Bellmont’s portfolio’s use a rules-based approach to select and invest in Australia’s highest quality stocks trading at reasonable prices.  Bellmont’s objective is to offer a managed share portfolio that is designed to generate higher total returns than simply investing in the broad market.

The Bellmont Approach

The Bellmont Systematic Value portfolio is the implementation of Warren Buffett’s famous quote “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Value investors at heart, Bellmont’s portfolio’s use a rules-based approach to select and invest in Australia’s highest quality stocks trading at reasonable prices.  The objective is to offer a managed share portfolio that is designed to generate higher total returns than simply investing in the broad market*.

* Benchmark : ASX 200 Accumulation Index

The Process

At a high level, Bellmont have designed and built a rules based stock selection process that frees investors from the cognitive biases that we all inherit as humans.  Free from these biases that impede all investors, the model examines years worth of institutional grade financial statement data filtering out the bad (and potentially bad) and selecting only those stocks that meet Bellmont’s exact criteria.

The model initially filters out stocks with evidence or characteristics that suggest potential issues in the financial statement data.  This method alone helps avoid stocks that could be at risk of bankruptcy.  Once these stocks have been removed we then look at identifying characteristics that indicate high quality businesses, which tend to provide them with an advantage over their peers.  Finally Bellmont select only those stocks that can be purchased at reasonable prices to ensure the best possible likelihood of attractive long term investment returns.

  1. Enhancing a margin of safety by avoid stocks at risk of bankruptcy
  2. Identifying high quality companies
  3. Identifying companies that trade at reasonable prices

The benefits of Bellmont Securities

  • The investor maintains full beneficial ownership of the underlying shares
  • Assets held by a custodian in investors name
  • Complete transparency of underlying investments and transactions
  • Online portal provides up to date access to investments
  • Audited portfolio reporting (including tax)
  • Effective tax management (customised to each investor)
  • Portability – Move shares in and out of the managed portfolio without incurring costs or a tax event
  • No administration burden
  • Ongoing paperwork managed by Bellmont Securities (corporate actions & dividends etc)
  • Telephone Access to the Portfolio Managers

Research Driven

Whilst markets are generally efficient, decades of academic research have identified pockets of inefficiencies, that provide opportunities for disciplined investors to earn superior returns, without taking on excessive risk. It is these pockets of inefficiency that we target.

Systematic

Rather than relying on the subjective judgements of individual portfolio managers, Bellmont Securities employs entirely systematic strategies that allow us to avoid the common cognitive errors that most investors suffer from – and which in many cases create the very inefficiencies they seek to exploit.

Transparent

Unlike traditional fund managers, we believe investors have the right to see how their money is invested. By holding individual shares, rather than units in a trust, our investors enjoy complete transparency in regards to holdings, transactions, performance and fees.

Tax Effective

Net Returns after fees and taxes are what really matter. By considering the tax implications of everything we do – from holding structure to strategy, we ensure that we maximise not only headline results, but also the net result to our investors.

Affordability

Using the latest technology and a systematic investing process, Bellmont are able to offer a transparent and market leading free structure.

• Management Fee: 0.60% + GST
• Performance Fee: 20% of out performance above the ASX 200 Accumulation Index with a high water mark + GST

What does this look like practically?

Lets compare a $100,000 with a standard portfolio fee of 1.20% to the Bellmont portfolio fee of 0.60%. We assume that over 10 years each portfolio grows by an average of 10% per annum.

Standard Portfolio

Starting Amount: $100,000
Fee: 1.20%
Portfolio value in 10 years: $235,794
Fees over 10 years: $19,124.91

Total portfolio value: $216,669

Bellmont Portfolio

Starting Amount: $100,000
Fee: 0.60%
Portfolio value in 10 years: $235,794
Fees over 10 years: $9,562.45

Total portfolio value: $226,232

Difference: $9,562.45 more money in your account!

Bellmont Securities are at heart value investors – always preferring to buy a quality business at a reasonable price, than chase ‘next big thing’ companies at outrageous valuations. A careful consideration of risk is central to everything that we do. As Warren Buffett says, “a long stream of impressive numbers multiplied by a single zero always equals zero”.

Why Supervision have chosen Bellmont Securities?

You may have a few questions when it comes to investing your money. What should I invest in? How should I manage my portfolio? These are common dilemmas faced by many investors primarily due to lack of time and expertise.

Bellmont Securities have designed a low cost, professional managed portfolio to remove these barriers and allow investors to reap the long term rewards of investing in the share market.

Supervision insist on third party providers like Bellmont Securities, because they help create efficient and cost effective SMSF services for you. What we like:

Professional Portfolio Management including: Tax, Research, Experience & Documentation

Consistent Track Record of Above Average Returns*

Low barrier to entry-$25,000 minimum investment

Diversification of Assets inside the portfolio

Choice to add risk management strategies

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* Bellmont Core Equities average out performance of 2.59% above the ASX200 Accumulation over the past 7 years. All performance figures quoted are the result of back-testing and do not represent actual performance of any client account. The information is based, in part, on hypothetical assumptions made for modeling purposes that may not be realised in the actual management of portfolios. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in achieving the returns have been stated or fully considered. Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical, back-test or simulated results are neither indicators nor guarantees of future returns. Unlike an actual performance record based on trading actual client portfolios, hypothetical, back-tested or simulated results are achieved by means of the retroactive application of a back-tested model itself designed with the benefit of hindsight. The back-tested performance includes hypothetical results that do not reflect the deduction of advisory fees, brokerage or other commissions, and any other expenses that a client would have paid.

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