Lonsec delivers inaugural rating for Swell

High conviction global equities boutique, Swell Asset Management, has received its first rating from research house, Lonsec, with the Swell Global Portfolio rated as ‘Investment Grade’.

The global portfolio is a concentrated portfolio of 10 to 20 large companies, aiming to return 9% per annum over rolling three-year periods.

“Swell considers itself a quality-focused value investor but has also described its style as closely resembling a blend approach as some holdings have growth characteristics,” the Lonsec report said.

“Swell’s strong emphasis on a company’s quality, competitive advantage and economic moat is viewed as introducing a growth dimension to the philosophy, which has been observed empirically, and more closely resembling a growth at reasonable price approach.”

Stephen Poole, Chief Executive Officer of Swell, said the September launch of the Swell Global Portfolio that provided retail investors with access to the firm’s capabilities was due to the unique investment process that had delivered strong outcomes for wholesale investors for the past six years.

“We are looking forward to working with financial advisers and investment consultants,” he said.

The Lonsec rating comes after the firm was also awarded a ‘Superior’ rating from SQM Research, noting its ability to deliver risk adjusted returns for investors as promised and its “appreciable potential to outperform over the medium to long-term”.

SQM’s report also said Swell has a “robust” investment philosophy, stock selection and portfolio construction process.

“The strategy employs rigorous and demanding investment criteria with an emphasis on screening for superior business quality, growth and valuation. Sectors deemed high risk are generally avoided,” the SQM report said.

As of 31 August 2021, Swell Asset Management recorded $105.5 million under management.