Investment Philosophy

Chancellor Hattersley Lloyd seeks to understand the client's investment objectives, financial situation and particular needs, for both the overall asset allocation of their investments and specifically for investing in equities. A key element to Chancellor's service is to enhance client's understanding of the strategies and alternatives available to them.

For instance central to establishing appropriate investment strategies is to understand the client's investment objectives, financial situation and particular needs, including income requirements, current and likely future taxation position and capital appreciation objectives. It is only then the benefits of dividend imputation (franking credits) and the possible discounting of realised capital gains by up to 50%, (or in certain circumstances the historical indexing of capital gains) can be maximised.

We believe that with a properly managed approach to investment, an investment portfolio should deliver reliable growth and dividends. Chancellor is a value based investment adviser. This means that we seek to invest in stocks that are undervalued based on the fundamental evaluation of those stocks. Such a situation may arise, for example, where for some short-term issue the price has fallen but the long-term returns are not affected.

The decision to sell must reflect the long-term expectation of returns as well as the tax impact, it should not reflect short-term volatility in the price. In short, we would not advise to sell unless we believed the long-term expectations had diminished. Whilst share market trading can provide some significant gains (and losses) we do not believe that approach can deliver real long-term growth.