Risk Screening

Risk Screens:

Liquidity (120 Days)

Financial Risk

Geo political




Expected Returns

Stock Research:

Qualitative evaluation
(Includes ESG as 1 of 6 factors)

4+ years forecasts

Valuation models

500 Company meetings p.a.

Portfolio Construction


Core Portfolio


High Alpha

Stock Selected:

Where recommended by analyst

Positive excess returns

Approved by team head

Our Investment Principles

  • Solaris uses fundamental analysis to choose stocks, to exploit market inefficiencies in forecasts and valuations.


  • Analyst management of the portfolio is the best way to capture market inefficiencies.


  • Active Management can provide better investment returns than passive investment.


  • To achieve superior returns, positions are taken which deviate from the benchmark portfolio, through skillful stock selection.
  • All investment decisions are supported by detailed analysis of the securities and key financial markets, with an eye on the global perspective.


  • We apply strict risk controls to minimise the exposure to downside risk.


  • Selecting stocks is our main area of expertise. Our research aims to identify the ‘true’ value of each stock, based on qualitative and quantitative company fundamentals.


  • We have no bias towards value or growth stocks (‘style-neutral’). We identify the stocks with the best-expected return, regardless of perceived style.

Investing With Solaris

As an active, style-neutral Equities Manager, Solaris uses fundamental analysis to select stocks. Industry positions are a function of this stock selection.


To formulate an investment portfolio, the following steps are taken:

  • Risk Screening: Solaris conducts risk screening to arrive at an ‘Investable Universe’ of 200-250 companies.


  • Stock Research: The Solaris team conducts industry analysis, takes company meetings, and undertakes modelling and valuations of all companies in the Investable Universe. Solaris uses both qualitative and quantitative techniques to arrive at an Expected Return of the stock.


  • Expected Returns Platform: The Solaris analysts compare the Expected Return of a stock against the Expected Return for the Universe, to arrive at an ‘Excess Return’. The size of Excess Returns guides the stock selection that ultimately leads to the generation of the portfolios.


  • The typical or core portfolio size is 40-70 stocks (or 20-40 in the case of Solaris’ High Alpha Australian Equity Fund).


  • The Solaris analysts, who are most knowledgeable about a stock’s prospects, and are also the portfolio managers, are critical to the Solaris investment process.
  • Awareness of after-tax management is also a fundamental component of the Solaris investment process. We apply our after-tax philosophy, along with learnings from many years experience in after-tax management, to all portfolios with no Alpha deterioration in optimising after-tax outcome. Solaris aims to:

Optimise Dividend Franking:

  • – Harvest high, fully franked yields
  • – Minimise 45-day rule breaches

Minimise Capital Gains Tax (CGT):

  • – Stock cost-base parcel management (highest-in, first out)
  • – Minimise loss of 12-month CGT 50% discount