GROWING WEALTH THROUGH GLOBAL INVESTING
AXIAM Capital Management is a specialist fund manager focused on buying shares in global businesses that own great brands. We invest in companies that generate cash for shareholders in the form of dividends and share buybacks.
Goals and Vision
Our goal is to convert our client’s current capital into an annual dividend. Our service focuses on high net worth individuals, who want to grow their wealth and in particular, their investment income. Many of our clients are successful entrepreneurs and business owners who want to invest globally to continue to increase their wealth.
Our investment philosophy is the result of 20 years of research and investment experience in the world’s global equity markets. We study the timeless wisdom of successful investors like Warren Buffett, Charlie Munger and Howard Marks to name a few.
THE AXIAM WEALTH BLOG
Investing is a lifelong journey. There is always more to learn and teach. Our mission is to share timeless investing wisdom that leads to financial success. We empower our clients to be more educated and confident about the investing process, pitfalls and opportunities. We want to ensure our clients understand the path to achieving their financial goals through investment success.
Our initial blog on investment beliefs highlighted 5 beliefs that could damage future investment performance. We subsequently added 10 more beliefs preventing investors from taking investment actions likely to yield a positive outcome.
Our investment blogs are designed to demystify the investment process and make it understandable. There are many different investments options. So many in fact, that making a choice can be daunting. Investment options include, but are not limited to, property, private companies, commodities like gold and copper, listed companies, futures, options, mutual funds and exchange traded funds to name a few.
An investment philosophy is essential to provide focus on assets that are understood and within your “circle of competence”. It is essential to comprehend what you have bought and why! You will understand your investments better if you have an affinity and passion for the companies that you own.
We invest in companies that own global brands. These companies have particular attributes that we feel provide growing income for our clients. Many of the companies we invest in pay growing annual dividends. Our goal is to convert our clients current capital to an annual dividend.
Our goal is to grow our clients’ wealth. Instead of only looking at the capital value of the shares we own, we focus on the dividend income our investments produce. Our clients’ measure of success is compounding dividend income.
SOME OF THE WORLD’S GREAT COMPANIES
Focussing on the world’s best brands
We buy shares in companies, regardless of their geography, that have great brands that are known, loved and used by people around the world on a daily basis.
A SELECTION OF GREAT BRANDS
The following ideas underpin our investment philosophy:
- Invest in businesses that own brands. Brands are powerful trademarks that are top of mind when consumers make buying decisions. Dominant brands allow companies to charge more for products and services that are familiar and trusted. When we analyse brands, we look for businesses that have advantages that can be sustained for decades to come.
We invest in global companies, regardless of the company’s head office geography. We prefer businesses with the ability to sell their products and services in both developed and developing markets. These companies have proven manufacturing, marketing and distribution capabilities that are operational in multiple countries.
We look for investments that generate cash that can be paid out to shareholders to provide a growing income in the form of increasing dividends. The power of compounding is unleashed as the additional shares purchased with dividend income, in turn, generates more dividend income. On occasion, we will invest in a growing brand that does not currently pay dividends but is likely to pay dividends in the future.
We invest in businesses that do not have excessive short-term debt. Excess debt makes companies more vulnerable to economic cycles and interest rate increases.
We prefer investments that are likely to benefit from advances in technologies that enable more efficient production and distribution.
We prefer stable market leaders with long track records rather than young, unproven companies with limited financial history.
We prefer simple businesses that are easy to understand.
Our preference is to hold our investments for the long term. We like avoiding capital gains taxes and excessive transaction fees.
We expect markets to crash from time to time, and when they do, we increase our holdings of our favourite companies.
We focus on both the analytical and physiological elements of investing. We understand that investor temperament is vital for investment success. We avoid the euphoria of overpriced markets and are active when markets or individual companies have temporarily declined in price.
This philosophy leads us to scour international stock markets for great brands that are temporarily unloved and selling at reduced prices. Buying these great companies allows us to generate the income and return our clients require to meet their financial goals.
Emotional control is more important than IQ when it comes to investment success. Extreme market cycles, characterised by bubbles and crashes, are more influenced by human psychology than economic fundamentals. The emotions of fear and greed are dominant at the depths of a crash and peaks of a bubble.
The AXIAM fund management team are experts in investor psychology and temperament. We provide on-going counsel to our clients to ensure they don’t make irrational investment decisions that will damage investment returns. This counsel is most valuable at market extremes when prices are very high or low. We protect our clients from the temptation to buy into euphoria and overpay for shares. Daily new prices highs and positive news in the media characterise phases of market euphoria. Of equal importance, we ensure our clients purchase more shares in great companies at the best possible prices when markets decline. We carefully analyse these companies to ensure fundamentals remain intact. Negative news in the media and depressed sentiment can represent the best buying time to make additional purchases. This thinking is best summarised by Warren Buffett when he says “Be fearful when others are greedy, and greedy when others are fearful”.
In addition to ensuring our clients “buy low”, we provide on-going guidance during any stage of the investment cycle. We look for market opportunity regardless of the current circumstances.
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