Through its funds, Tyche Asset Management is able to offer its investors investments in debt instruments, shares and property. The funds’ objective is to create and add value to investors’ wealth by providing optimal asset allocation strategies within a diversified range of investment solutions. Changes to Through its funds, Tyche Asset Management is able to offer its investors investments in debt instruments, shares and property. The funds’ objective is to create and add value to investors’ wealth by providing optimal asset allocation strategies within a diversified range of investment solutions.
Why Tyche
In a relatively short space of time Tyche has emerged as a unique financial services offering in the Australian and international marketplace.
Our Team
The people at Tyche Asset Management came together in 2015 from very different cultural and professional backgrounds with the goal of setting up a different breed of investment manager.
Our Offering
Through its funds, Tyche Asset Management is able to offer its investors investments in debt instruments as well as shares and property.
Value Investing from Your Wealth Management Specialist
Tyche Asset Management was established in 2015 by a group of leading investment professionals, and offers managed funds to investors using Tyche Asset Management’s Australian Financial Service License (AFSL).
Through its funds, Tyche Asset Management is able to offer its investors investments in debt instruments, shares and property. The funds’ objective is to create and add value to investors’ wealth by providing optimal asset allocation strategies within a diversified range of investment solutions.
The people at Tyche Asset Management came together in 2015 from very different cultural and professional backgrounds with the goal of setting up a different breed of investment manager. Thanks to our extensive collective experience and expertise gained in both the corporate and financial worlds, we are able to offer our clients thought leadership and original investment ideas that sets us apart from your average investment house.
We are not your typical investment firm
We are able to draw on our experience gained at leading global firms, yet due to our boutique size we remain much more flexible and adaptive. Unlike the biggest institutional houses, where investment executives spend their days in endless successions of committee meetings, our thought leaders are directly managing our client’s investments to ensure the best possible outcome.
Tyche Asset Management is not limited themselves to any particular investment style, and as such are able to take full advantage of any market environment. All our managers bring with them a stable history of outperforming their market, and our “style-neutral” approach means that their abilities are not unnecessarily constrained. That said, we are inclined towards value investing.
Our investment team is not tied to reproducing the index, giving them the freedom to invest in their best ideas. We have combined this flexibility with a regimented investment process and a constant focus on managing the risk of capital loss, to create a firm that is in an entirely different class than the herd.
Tyche Asset Management currently offers managed investment Funds, covering cash, equities, bonds and real property.
Investment Process
In light of the interconnectedness of the global economy, we first assess the prevailing global financial climate to identify and quantify how these themes should impact the broader Australian economy. We then get more specific, drilling down into the various domestic sectors.
Having identified our preferred areas of investment, we will then evaluate the recent, current and expected state of those sectors before proceeding to the underlying companies and securities themselves.
Our top down approach helps to identify the most likely areas for profitable investment, allowing us to concentrate with confidence on the specific investments at hand.
We regularly monitor the relative attractiveness of the various asset classes, and will seek to actively reposition the portfolio in order to take advantage of any significant opportunities. These changes will be reflected in our tactical asset allocation.
When considering individual shares, our key criteria are the risk of capital loss, business models, profitability trends, and quality of management and the relative predictability of future cash flows.
If shares look unattractive, we will redeploy capital into defensive holdings such as bonds or cash while monitoring the situation to identify the right time to move back into riskier assets.
When assessing debt, our approach is quite similar. We first consider the nature of the issuers typically featured at each credit rating level. Our focus will be on determining the range of credit ratings that are fit to be included in our funds given the broader economic picture. The emphasis is on excluding the inappropriate.
Our primary focus at this stage will be on the ability and willingness to repay. Anything that raises doubts as to the security of investor capital is rejected.
After this process of eliminating the inappropriate, suitable issues are then selected based on creating an overall exposure in line with our desired positioning
Our Philosophy“All things excellent are as difficult as they are rare.”– Baruch Spinoza, 1632 – 1677
We do not seek to reproduce the index within our portfolio
We appreciate that over-diversification is most likely to create on an average result. We aspire to more.
Our funds will concentrate on those opportunities with the highest likelihood of profitable investment, rather than hugging an index. As we prefer to only invest in our best ideas, our performance will deviate from the wider market’s returns.
We believe that due to psychological and emotional factors, the market typically over reacts to important news.
We look through the short term media noise, keeping our eyes on the longer term horizon. One of the great challenges of investing is to recognise and control the emotional factor. In recent years this has become even more difficult, given the ability to receive investment updates on a 24/7 basis. Sensationalist journalism, driven by the media’s need to sell its product, tends to compound the investing public’s wild swings between fear and greed.
We believe that with the proper emotional discipline in place, investors can recognise many of these swings for what they truly are – opportunities for profit.
We do not see any benefits to be gained from excessive trading
Short term trading suggests a lack of conviction in a fund’s existing investments. In normal circumstances, a well-built portfolio of investments should not require a very large amount of change from one year to another.
Positions held over a year are subject to half the capital gains tax, which means a greater net of tax return for our clients. We would ideally prefer to hold all profitable investments for a period exceeding one year, however these are interesting times and a lot can happen in 12 months. In order to preserve investor capital, tax considerations will be overridden by the need to react to market events.
We recognise that not all risks are equal, and so we are very selective about which risks we take.
If we cannot quantify and manage a risk, we will not take it as this would go against our approach to capital preservation. In such cases, we would prefer to look for other opportunities with more predictable outcomes.
We believe that higher risk investments do not necessarily lead to higher returns.
Our experience has shown that the odds of achieving a superior return are more a function of the energy, discipline and capability that is applied to the investment process.
Our focus is on making profitable investments whilst managing the risk of capital loss.
We believe this prudent approach is simply common sense, and sure to be appreciated by all investors who have suffered in the past.
We are professional investors, who recognise the inherent difference between investment and speculation.
Recognising that expectations formed around any given investment are fallible, our preference is to seek out investments where we have a higher degree of certainty that our expectations will be reasonably accurate. This allows us to confidently establish a range of target prices for each investment, and to select those best suited for inclusion in our funds. By direct consequence, we are able to transact for our clients as professional investors, rather than as mere speculators.