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Above the Index Asset Management Pty Ltd (ATI) was established in September 2004 as a boutique Australian equity manager, specialising in the manufacturing of long only Australian equity portfolios. ATI's investment style is premised on a ‘relative value' methodology, meaning that investments are generally purchased and held as long as they represent relatively good value.

 ATI’s investment style is strongly based on the relationship between forecast earnings, relative market rating (RMR) and the current share price. The time horizon for forecast return calculations is three years.

ATI’s investment style can be characterised as:

  • Active with a relative value approach;
  • Using fundamental company analysis focused on understanding the composition and drivers of our earnings forecasts;
  • Assessing whether the market’s forecasts are realistic and whether the rating (RMR) that is being paid for these earnings is appropriate;
  • Using a capitalisation of earnings methodology for valuing all stocks in the investment universe to ensure consistency of approach;
  • Placing a greater emphasis on near term earnings forecasts;
  • Focused on buying stocks identified as relatively undervalued and selling stocks identified as relatively over valued;
  • Producing concentrated stock portfolios with no specific bias targets towards large or small capitalisation stocks;
  • Being tracking error and stock specific risk aware with a view to managing and controlling investment risk; and
  • Process driven with a disciplined methodology in stock selection and risk management.

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