On the 1st of May 2023, FSI celebrates 25 years since the first money was seeded and investments made. For anyone tracking our performance since inception date has always been 1 May 1988.
This tenure of operation is an incredible milestone in a market where many investment vehicles come and go. The root cause of this longevity lies in a number of factors but ultimately rests in the long-term approach taken by the stakeholders involved.
Long Term Investments
The investment strategy centres on the view that the economics of a business drives long-term investment returns and investing in high-quality business franchises that have the ability to generate predictable, above-average economic returns will produce superior investment performance. To this end when modelling out the returns on a particular investment the Manager is looking at a five-year time horizon, with many investments held in the portfolio beyond this period. The result of the investment process is the performance as outlined above, 12.0% versus the All Ordinaries Index which has grown by a positive 4.0% over the same time period.
Long Term Shareholders
FSI is fortunate to have a large portion of its register as long-term investors. While there might be some downside to a less traded company, we are proud that investors have high conviction in our business and have maintained faith through multiple market cycles. We recently spoke to a Shareholder who has been invested in FSI for over 20 years. When asked how FSI fit into their long-term strategy, they said:
Long Term Management
Dr Manny Pohl AM has been managing the FSI portfolio since its inception. As a substantial Shareholder as well, Manny is highly aligned with the performance of the business and long-term Shareholder returns. The long-term involvement of such a highly regarded investment professional provides confidence in the ability of FSI to maintain its long-term strategy, to maintain its performance and to honour its commitment to Shareholders of creating Shareholder wealth through active management of a portfolio of ASX-listed quality growth companies.
With 25 years of very respectable performance, we are looking forward to the next 25 years growing together with our Shareholders.