Our Approach

Our Approach

At Fundamental Asset Management we create bespoke direct equity portfolios – NOT generic Funds.

Fundamental Global Growth Portfolio Explained

Investing in some of the world's largest high-quality companies through the Fundamental Global Growth Portfolio offers a compelling opportunity for growth.

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Fundamental UK Dividend Income Portfolio Explained

Fundamental UK Dividend Income Portfolio can provide you with a reliable income stream, protection against inflation, and the potential for long-term growth.

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Business Relief Explained

Investments that qualify for Business Relief (BR) can be passed on free from Inheritance Tax upon the death of the investor, provided the shares have been owned for at least two years at that time.

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AIM Explained

Investing in exciting, ambitious businesses offering excellent investment opportunities, combined with attractive tax benefits.

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AIM ISA Explained

An AIM ISA portfolio or AIM IHT ISA portfolio is a portfolio of AIM shares listed on London’s AIM market, which should benefit from 100% relief from Inheritance Tax (IHT) and is designed to be held in an ISA.

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ESG Responsible Investment

Fundamental Asset Management is committed to a range of Environmental, Social and Governance (ESG) principles which help us to operate and invest responsibly.

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Methodology & Approach

What is the difference between a Portfolio vs a Fund?

  • Portfolios are bespoke and can be tailored to a clients needs (subject to size).
  • Portfolios are transparent and clients understand exactly what is held and what is driving performance.
  • Holdings are liquid in themselves and a model will not be vulnerable to suspensions.

The investment approach is best described as bottom up and growth focused with a value overlay.

The Investment process starts with an initial stock screening with the primary criteria being, profitability, growth, PE, PEG, dividend yield (and cover), strong insider ownership, management experience, market capitalisation, stock liquidity and (if an AIM IHT portfolio) Business Relief qualification. The objective of this screening process is merely for idea generation and does not, alone, constitute a reason to invest. Idea generation is not restricted to only the screening process. Industry publications, investor magazines can be a source as is one company leading to another. Once the screening process has generated some ideas, the next stage of the process is to analyse the strategy of the business and to gather as much information as possible on what the company is trying to achieve/sell. This may include products, manufacturing, sales targets, operation of sales outlets, customers. This information is generally found on their website or in related publications.

  • Growth actual and prospective
  • Profitability (unadjusted, excl EBITDA)
  • Cash generation
  • Return on Equity
  • Management/insider ownership
  • PE & PEG

Stage three is analysis of the financial statements and to gain a clear understanding the balance sheet, P&L and cash flow statements. Any areas that aren’t clear are highlighted in preparation for the meeting with management of the company. If our findings are satisfactory, then we will arrange a meeting with the management of the company.

Once the portfolio is constructed, Fundamental manages it on an ongoing basis, replacing holdings as necessary if they no longer represent investment value or (if an IHT portfolio) if they are in danger of losing their qualification for exemption from IHT. Active management of AIM IHT portfolios is allowed but must be done within certain rules. Expected turnover levels are very low but regular monitoring of holdings continues for the life of the portfolio.

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