Whitefield is an ASX listed investment company that seeks to build shareholder wealth through the delivery of reliable, cost efficient outcomes over many decades. The company invests in a diversified portfolio of industrial (non-resource) shares listed on the Australian Stock Exchange.

Investment Objective:

To generate portfolio total returns that are at least 0.5% per annum higher than the S&P/ASX200 Industrials Accumulation Index over rolling 5 year periods, and to do so on a better risk adjusted basis than the company’s peer group.

Investment Universe:

ASX listed entities that are members of the S&P/ASX200 Industrials Index.

Higher income and total return with lower volatility than the broad market.

Investment Style:


Not tied to the vagaries of an individual style that may go in and out of favour.


Behavioural finance philosophy.

Focus on the more persistent sources of excess return.

Investment Process:

Quantitatively based with qualitative oversight

Fundamental analysis with greater accuracy and efficiency

Portfolio Construction:

Enhanced indexed.

Higher probability of capturing the disproportionate contribution of unexpected, outsized stock outcomes on a small number of stocks.


The company currently carries a small degree of leverage via the company’s Convertible Resettable Preference Shares.

Management Cost:

The company’s annual costs of operation amount to approximately 0.37% of gross assets. This amount may vary slightly from year to year depending primarily on actual running costs and the market value of assets. 

Dividend Policy:

Subject to the requirements of law, the taxation regime or other factors that may be considered relevant by the company in forming their

  • The company expects to pay fully franked dividends on ordinary shares over time which are approximately equal to its estimated maintainable earnings from dividends, interest and distributions net of operating and finance expenses after tax.
  • Where the company generates net realised capital gains, it will also seek to distribute these as fully franked dividends over time.

Investment Objective:

To generate portfolio total returns that are at least 0.5% per annum higher than the S&P/ASX200 Industrials Accumulation Index over rolling 5 year periods, and to do so on a better risk adjusted basis than the company’s peer group.

Investment Universe:

ASX listed entities that are members of the S&P/ASX200 Industrials Index.

Australian Industrial Shares (being all sectors of the market other than resources) have characteristics that assist Whitefield in delivering upon its objectives of return and reliability. Over many decades Australian industrial shares have delivered both a higher level of income and a higher total return with lower volatility than the broad market.

Australia’s position as a politically safe and geographically attractive country is likely to continue to result in higher population growth and higher affluence than for many other economies. These trends are likely to provide a supportive base over an extended period for the Australian industrial economy.

Investment Style:


One dimensional investment styles (such as value or growth), have a tendency to be cyclical or inconsistent, delivering poor returns over the extended periods where market conditions move against those styles. Rather than follow the vagaries of any one specific investment style, Whitefield’s investment process is style agnostic.

Philosophy & Strategy:

Whitefield seeks to capitalise on the most persistent and reliable sources of excess return

Whitefield considers that the more persistent and reliable sources of excess return are the regular and systematic divergences between fundamentals and expectations attributable to human behavioural bias. We seek to capitalise on this by:

  • Understanding the patterns and influence of Human Behavioural Bias
  • Accurately measuring the influence of that Behavioural Bias without being influenced ourselves
  • Delivering this across enough breadth to diversify the random elements of financial markets
  • Executing on our process repeatedly and consistency 

Investment Process:

Whitefield seeks to deliver accuracy, breadth and efficiency through its investment process.

Important elements of our process are:

  • Utilisation of a quantitatively based framework combined with qualitative oversight
  • An emphasis on objectivity and reliability, to reduce the influence of our own judgement biases on forecasts and conclusions
  • Automation and standardisation where possible, to ensure consistency and repeatability
  • An enhanced indexed approach to portfolio construction, providing us with a higher probability of capturing the disproportionate contribution of unexpected, outsized stock outcomes on a small number of stocks.

The quality of a business is fundamentally important to an investor.

Over the long term businesses benefitting from favourable or improving industry structures, competitive position, management application and longer term economic trends have a propensity to generate higher returns on investment than companies that are not. A company’s relative ability to generate shareholder value forms the basis for our definition of Quality which we measure and rank through our Structural Attractiveness Assessment.

Patterns of mispricing materially influence investment returns.

Mispricing occurs when share prices diverge from the intrinsic value of a company. The share market routinely misprices stocks, in some cases by large amounts and over extended periods, creating ongoing opportunities and risks for investors. There is much empirical evidence in the field of Human Behavioural Bias (HBB) which supports our view that the dominant causes of mispricing are the errors of judgment which are systematically made by the investment community.

Whitefield seeks to classify stocks in terms of the scale of mispricing and how it is likely to develop in future through our Price-to-Value Cycle Assessment. This assessment characterises companies through combinations of Value, Quality, Revisions and Momentum, and assists us in capitalising on the opportunities and avoiding the risks that result from mispricing.

Whitefield believes that consistent and successful investment outcomes can be provided with the greatest reliability through a defined and disciplined process.

Our investment process has five stages:

Raw Data Collection We utilise a range of data sources across a variety of subject matter including historical company financials, broker forecasts and revisions, economic data, raw materials data and market data.

Proprietary Stock Models Our proprietary stock models combine proprietary valuation inputs and assumptions with consensus data in a manner designed to minimise our own judgment biases through the accurate assessment of long term drivers of shareholder value creation.

Data Processing Our customised analytical processes and measures utilise the raw data and stock model outputs, and have been designed to suit our ultimate purpose of assessing companies’ relative Quality and Intrinsic Value.

Stock Classification Based on the outputs of our data processing analysis, stocks in our coverage universe are assessed, ranked and allocated against our Structural Attractiveness (SA) and Price-to-Value-Cycle (PVC) criteria. These quantitative conclusions are qualitatively assessed by analysts and either confirmed or overruled based on a rigorous set of criteria designed to minimise the influence of our own judgment biases.

Portfolio Construction & Risk Management Whitefield’s portfolio is then constructed by the Portfolio Manager using the SA and PVC assessments and with reference to our overarching portfolio framework which utilises the most profitable and suitable combinations of SA and PVC classes in the light of our experience and process back-testing.

We also embrace a philosophy of continuous process enhancement to ensure that our methodology is best able to satisfy our objectives in the light of technological advancements and changes in the market environment. Our process of continual enhancement draws upon the experience of our investment personnel, an active process of methodology research and review and rigorous empirical testing of enhancements prior to implementation.

All investment involves risk. An investment in Whitefield carries risks associated with investment in listed shares generally. Important risks and associated considerations for Whitefield shareholders include, but are not limited to, the following matters:

  1. Investment outcomes are inherently uncertain and unpredictable. Investment returns in future may be positive or negative. The value of Whitefield shares in future may be higher or lower than today. The returns of the Australian share market have historically been volatile and included both significant rises and falls.
  2. Investment returns in future years may differ materially from returns in prior years.
  3. Investment returns in future years may be influenced by a very wide variety of factors including, but not limited to, Australian and international economic and business conditions, government policy and regulation, taxation, interest rates, inflation and decisions made by the Company and its personnel in the course of business.
  4. The shares of Whitefield, and the price at which they may be bought or sold, may be influenced by a wide variety of factors including but not limited to returns of the company’s investment portfolio, costs associated with the company’s business, the volume of buyers and sellers of shares and the quantity of shares to be bought or sold. This may result in the market price of Whitefield’s shares being higher or lower than the value of the Company’s underlying assets.   

Investors may wish to seek the advice of a Professional Adviser when considering the risks associated with an investment in Whitefield.