Transcription of Finance News Network Interview with Hunter Hall International Limited (ASX:HHL) CEO, David Deverall Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from specialist global and Australian equities investment manager, Hunter Hall International Limited
(ASX:HHL) is its CEO, David Deverall. David, welcome to FNN.
David Deverall: Thank you Lelde, it’s good to be here.
Lelde Smits: Could you start by introducing Hunter Hall International. How long have you been operating for, what is the size of your Fund and how are you different from other equity managers?
David Deverall: Hunter Hall is a Sydney based global equities investment manager. We started life in 1994, when Peter Hall founded the company. And today, we manage just over $1 billion worth of funds, on behalf of over 10,000 clients. The thing that distinguishes Hunter Hall is that firstly, we are a value investor. Secondly, we focus on companies that are what we call, small to midcap stocks. In other words, those with a market capitalisation of less than $10 billion. And thirdly, all of our stocks must pass an ethical screen, which we have devised. And that really makes a point of difference for Hunter Hall, versus the competition.
Lelde Smits: Looking at your financial performance. How would you rate the performance of Hunter Hill over the past year, and what have been your highlights?
David Deverall: 2015 was a really good year for Hunter Hall and our clients. Main Funds delivered investment returns of approximately 30 per cent, which is really good compared to global equity markets. And about 25 per cent better than the All Ordinaries, which is the Australian market. For example, our listed investment company, which is called Hunter Hall Global Value Limited with a stock ticker of HHV, delivered returns of 30 per cent.
Also our largest managed fund, the Value Growth Trust, delivered returns of 30 per cent over the year. Interestingly, the Value Growth Trust has delivered returns of 15.4 per cent per annum for every year, for the last 20 years. So what that means, if you invested $10,000 back in 1995 that would be worth over $175,000 today. That’s great returns and I don’t think you’d find any other investment manager in Australia, that could deliver such good returns.
Lelde Smits: Hunter Hall is one of Australia’s largest dedicated ethical managers. David, could you explain how ethical investing works?
David Deverall: At Hunter Hall we apply ethical investing principals, by excluding those companies that we believe are harmful to either people, animals or the environment. So in practical terms that means, we don’t invest in companies that either have a majority part, or a material part of what they do, involved in things like gambling, tobacco, armaments, fossil fuels and factory farming.
Lelde Smits: Which stocks have contributed to your performance over the past year?
David Deverall: Well many of our stocks contributed to our great performance over the last year, but a few of them are noteworthy. FirstlySirtex Medical Limited
(ASX:SRX), which is a liver cancer treatment company. It’s done extremely well. Secondly, it’s a company called Take-Two Interactive (NASDAQ:TTWO) that produces video games. Third company is a Japanese stock called Leopalace Corporation (TYO:8848), which makes and looks after one bedroom apartments in Japan.
Another company is a banking company called ICBC from China. Another company is M2 Telecommunications
(ASX:MTU), which is a mid-tier Australian Telco’s company. And then finally, an American bank that’s doing well for us is Bank of New York Mellon Corp (NYSE:BK).
Lelde Smits: Finally David. What is Hunter Hall’s long-term strategy and what will you be focusing on in the near term?
David Deverall: Hunter Hall’s long-term strategy is pretty simple. Our aim is to offer our clients a range of high performing investment products that enable them to achieve their financial goals. And we do that through three means. One, we focus on being a value investor, which we believe is the best form of investing. Secondly, we focus on small to midcap stocks, which are those stocks with market capitalisations with less than $10 billion. And they offer very high growth opportunities for investors. And thirdly, we only invest in those stocks that pass our ethical screens.
Looking forward over the next 12 months, we do have some exciting new business opportunities. Particularly, we will be launching shortly a new Fund called the High Conviction Equities Trust. And this Trust was seeded about six months ago, its delivered returns of 50 per cent already over the last six months. So we’re looking forward to offering that opportunity to some of our investors in the near future, which we think will be great for them.
Lelde Smits: David Deverall, thank you for the update from Hunter Hall International.
David Deverall: It was a pleasure Lelde, see you soon.
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