Investment philosophy
Our investment philosophy is based on the belief that quality resources companies will outperform the general resources market over the long term. We do not believe there is sufficient information to accurately predict short-term commodity prices and by investing only in quality companies, we can effectively minimise our leverage to volatile commodity prices.
Colonial First State Global Asset Management employs a specialist resources team, with a high level of scientific training in geology, chemistry and engineering. Company and asset visits are considered critical to the overall investment process and decision-making.
Investment process
Our investment approach has several key elements, including:
Sustainable earnings per share (EPS) growth
We look for companies with the potential to generate sustainable and attractive EPS growth over the medium-to-long term.
Quality companies
Attractive attributes includes balance sheet strength, proven management, prudent corporate governance and transparent accounting policies.
Quality assets
Our preferred investments are based on better quality resource assets. We target low costs, long mine life and good operational management.
Low cash costs
One of our key quality drivers is that of cash costs. Low cost of production means companies will stay in business throughout the commodity cycle.
