International Quality Equities

Building since 2024 · Diversification

Purpose

A small number of offshore businesses held for currency diversification and for cash flows not available on the ASX. Building since 2024.

Limits

Single positions are capped at 3 per cent of the book. No derivatives are used. The sleeve is a minority of the total portfolio.

Selection

The same screen as the domestic book: describable in one paragraph, visible cash flow, a balance sheet that does not depend on capital markets, and a price below the office's estimate of value.

Withholding tax and double-taxation relief are modelled before purchase.

Review

Each position carries a written thesis, reviewed at least annually.

Risks

Currency movement affects the value of the sleeve in Australian dollars. There is no hedging programme, and positions are sized so that currency movement is not the deciding variable.

Where the office cannot inspect operations or speak to management directly, positions are smaller.

Elsewhere in the Portfolio

Other work in the portfolio

Two further positions that illustrate how the office allocates capital across asset classes.

Private

Family-Business Partnership

A direct partnership with a Melbourne family manufacturer, structured for continuity rather than for exit.

Established 2024View →

Real Assets

Melbourne Inner-East Office Portfolio

Four commercial properties across Camberwell, Hawthorn and Kew, anchored by long-standing professional services tenants.

Acquired 2023–2024View →

Position Facts

The position at a glance

Single position cap

Minority

Share of total book

Nil

Derivatives used

Annual

Thesis review

Questions on This Position

Questions about this position

Questions asked about this position.

Why invest offshore at all?

Cash flows that do not exist on the ASX, currency diversification, and avoiding the concentration of the family's capital in one economy and currency.

The sleeve is sized to deliver those benefits without becoming the dominant driver of the book.

How do you handle currency and tax?

Currency is treated as a characteristic of the asset. There is no hedging programme, and positions are sized so that currency movement is not the deciding variable.

Withholding tax and double-taxation relief are modelled before purchase.

How do you research businesses you cannot visit easily?

More slowly and in smaller size. Where the office cannot inspect operations or speak to management directly, positions are smaller.

The office does not hold what it cannot inspect.

Positions are reviewed annually against the thesis recorded at purchase.

Discuss a Position

Ask about the international sleeve

Advisers and researchers working on cross-border allocation are welcome to write to the office.

Substantive enquiries are answered within two business days.
Commercial information is treated as confidential.

See how the rest of the portfolio is built

This position is one of six that illustrate the way the office allocates capital.

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