Endeavor is a boutique fund manager investing in Australian equities.

Endeavor was established in August 2010 and manages investment portfolios on behalf of individual high net worth investors and wholesale institutional clients.

Our clients engage Endeavor’s services to manage a portfolio on their behalf.

It is essential that the portfolio is appropriate not only to your wealth management needs but that the investments within the portfolio are appropriate to your own expectations of risk and return. While we strive to make the process as simple as possible it is essential that we have the necessary information to ensure that investments made on your behalf are appropriate to your circumstances. To do this we request that you complete our application form or contact us to talk directly to an investment manager who will assist you through the process.

At Endeavor we believe in aligning our incentives with our client’s requirements and have structured our fees to provide appropriate incentive. The fee structure is:

Management Fee1 1.35% per annum plus GST
Performance Fee2 15% x Outperformance x Base Amount
Transactions Costs3 0.20% plus GST per trade or less
Minimum Fee NIL

1Management fees – These are calculated Quarterly in arrears based on the daily Total Portfolio Value and is deducted directly from your portfolio. The management fee includes all costs associated with the custodian Sandhurst Trustees.

2Performance fees

Outperformance = the lessor of portfolio rate of return minus benchmark rate of return since last Reset Date or portfolio rate of return since last Reset Date minus zero.

Base Amount = the portfolio value at last Reset Date (plus any additional contributions and minus any withdrawals).

Reset Date = the last business day of the Quarter for which performance fee was last paid or the opening account date if no performance fee has been paid.

Benchmark rate of return = the ASX All Ordinaries Total Return (XAOAI.ASX).

Portfolio rate of return = time weighted rate of return (TWRR) after fees per Global Investment Performance Standards (GIPS).

This equation is tested at the end of each quarter, and if the value of the portfolio at that date is less than:

  • The value of the portfolio on the commencement date (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).
  • The value of the portfolio on any previous Reset Date (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).
  • The value of the portfolio on the last business day of any prior quarter (plus any additional investments into the portfolio and minus any withdrawals from the portfolio).

Then no performance fee is payable, even where the calculated performance fee would otherwise be greater than 0.

3Transactions costs – These are paid for every purchase and sale in your portfolio, this is charged at cost and forwarded directly to the broker who facilitates the transactions. It is not a fee paid to Endeavor.

No. The high water mark prevents clients paying any performance fee on a lower portfolio value.

Unlike conventional managed funds, you have beneficial ownership of the actual assets within each portfolio, so you can see what shares you own and track changes in your portfolio.

Endeavor has a custody agreement with Sandhurst Trustees Limited (Sandhurst). Under this agreement Sandhurst will hold the legal title to any shares acquired or held through Endeavor’s managed service. While Sandhurst holds legal title, the beneficial interest in the shares remains with you. Further information on Sandhurst below.

Endeavor’s philosophy – “success is attained by investing in good people running great businesses”

Endeavor was established to preserve and enrich wealth through careful management of the investment portfolios of high net worth investors and wholesale institutional clients.

Our analysis uses 5 key criteria below which our experience has shown forms the basis of any good investment and is used to narrow the filtered list of target stocks down to a portfolio recommended list.

  1. Thematic – the industry and environment that the company operates in.
  2. Management – the experience and competence of the management team.
  3. Quality of business – the reliability of earnings, sustainability of the business, barriers to entry, return on invested capital. We assess the company’s strategy and market position for growth. We consider the industry in which the company operates, its position in this market, and the level of competition.
  4. Financials – in particular free cash flow, return on invested capital versus WACC, and balance sheet strength.
  5. Valuation / expected return – we place high importance on DCF valuation in deriving our valuation of a company. We also assess the value of a company based on price to earnings and enterprise value multiples, free cash flow and dividend yields.

Our objective is to build an investment portfolio that will deliver above average returns for our investors over the longer term. We are driven by the performance of our client portfolios in all that we do.

For more information, please refer to our investment process.

We are not interested in building huge funds under management. We want to remain nimble and adaptable so that when required we can act swiftly in the best interests of all our clients. We know the challenge that comes with managing large portfolios.

At this time, Endeavor is continuing to accept investments from high net worth investors and has an intention of capping total funds under management at around $1,000 million.

As the track record of our staff is very important to us, you will not see Endeavor grow at the expense of performance.

Endeavor is committed to remain a true boutique asset manager.

No. Endeavor clients are the beneficial holder of their own individual portfolio that is similar to our other high net worth investors. The shares are held in the name of Sandhurst and ultimately, on behalf of our clients.

In contrast to pooled investment vehicles, investors in Endeavor’s Managed Discretionary Account Service (MDAS) retain individual ownership of the underlying investments managed by Endeavor.

We structure this way so that new clients are not affected by existing capital gains tax positions held in other clients portfolios. This may allow clients to benefit from the tax advantages from discounted CGT benefits.

Portfolios across most of Endeavor’s high net worth client base are similar allowing a focus on a limited number of stocks but each portfolio may be tailored to individual client requirements. Some clients may not be able to deal in certain shares for legal reasons e.g. they may be the director of a particular listed company or have conflicts of interest in which case either a substitute stock or cash may be held.

Sandhurst is the custodian of the assets that you acquire through Endeavor’s MDAS. Sandhurst is licensed by ASIC (AFSL 237906) to, amongst other things, act as a custodian. Sandhurst Trustees is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited (AFSL 237879).

Under financial services laws and ASIC’s policies, an entity which holds the legal title to clients’ assets must meet certain minimum financial requirements. This includes a minimum level of net tangible assets of $5 million.

In order to ensure these minimum financial requirements are met, Endeavor entered into a custody agreement with Sandhurst. Under this custody agreement Sandhurst will hold the legal title to any assets acquired or held through the MDAS. While Sandhurst holds legal title, the beneficial interest in the shares remains with you. In accordance with customary practice, Sandhurst will hold the assets under the agreement in a pooled account, but the assets will be identified as your own using our electronic book-entry system.

This arrangement means that Endeavor holds records for all individual clients and is able to produce client reports on request at any time, but does not hold the legal title to the shares. Under the custody agreement, Sandhurst holds the legal title to your shares as a ‘bare trustee’. This means that Sandhurst does not have the right to deal with your shares other than as directed by us.

Accordingly, Sandhurst’s role is simply to hold the legal title to the assets of clients of the MDAS and to give effect to the instructions provided by your Endeavor investment manager.

Sandhurst is obliged under the custody agreement to give effect to your investment manager’s instructions and is also required to provide various reports to Endeavor at regular intervals in relation to the assets held by it in connection with the MDAS.

Finally, under the custody agreement Sandhurst is required to maintain an adequate level of insurance in relation to its activities as a custodian.

Given Sandhurst is only a bare trustee; it cannot sell your shares unless you or your authorised investment manager gives instructions to Endeavor to do so.

The custody agreement acknowledges that although Sandhurst holds the MDAS assets as bare trustee for Endeavor, ultimately, we act on your behalf you hold the beneficial interest in the assets. This means that no creditor of Sandhurst can lawfully seize the assets it holds in its capacity as custodian of MDAS.

Accordingly, in the unlikely event that a liquidator was appointed to Sandhurst, that liquidator would not be entitled to sell the assets held by Sandhurst on behalf of the clients of MDAS to satisfy any debts owed to Sandhurst’s creditors.

The MDAS Agreement requires that we identify that the assets belong to you. This means that no creditor of Endeavor can lawfully seize the assets that we manage as part of the MDAS.

The regular reports provided by Sandhurst to Endeavor in relation to the assets held by it in connection with the MDAS, will allow Endeavor to provide an accurate consolidated reporting service to clients.

All correspondence and corporate actions are received by Endeavor and are looked after by our administration team. This should minimise the possibility of missed option expiry situations or missing other corporate actions

You (as a client) are still entitled, on request, to receive any correspondence you would receive if you held the shares directly.

Anonymity on share register – only Sandhurst’s name appears on companies share registers (it is possible to request underlying holders details under the tracing provisions of the Corporations Act on request by ASIC or the listed company)

Shares can be transferred back to the beneficial owner – unlike managed investments where the units must be sold giving rise to a CGT event.

Endeavor is majority owned by Robert Mead, who has had a long and successful history working together with his investment team managing client assets.

Robert is supported by a highly experienced professional team.

More than anything our clients are behind Endeavor. We believe that the most important element of our business is the needs of our clients. Our commitment to place our clients’ interests first is what drives our business forward.

More Information

We follow a consistent process in regards to Stock Screening, Security Selection, Portfolio Construction and Selling Discipline.

Our Process

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We are always here to help so do not hesitate to get in contact with us if you have any further questions.

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