Frequently Asked Questions

How is Quest Licenced?

Quest Asset Partners Pty Ltd holds a wholesale Australian Financial Services Licence from ASIC (Licence No. 279207).

What is Quest’s investment objective?

The investment objective of the Quest Australian Equities Concentrated Portfolio is to outperform the S&P/ASX300 Accumulation Index by 4% p.a. over the longer term pre fees.

Who can invest with Quest?

Retail Investors with a financial adviser can invest in Quest via a number of Platforms. The platforms currently available are Mason Stevens, MacquarieHUB24 and Powerwrap. Quest has a wholesale licence and is not open to direct retail investors.

‘Sophisticated’ or ‘Professional’ Investors can invest via the Mason Stevens Platform or directly with Quest directly via the JBWere Multi-Asset Platform.

Quest also manages portfolios for a number of Institutions e.g. large Australian superannuation funds. These stocks within the portfolios have historically been similar to the Sophisticated Investor portfolios. Quest can tailor the portfolio to suit the needs of the institution.

What is a Sophisticated Investor?

Sophisticated Investors require a current certificate from their Accountant confirming they are a Sophisticated Investor. More information can be found here

How do you invest with Quest?

Retail clients can invest in the Quest Australian Equities Concentrated Portfolio via the Mason StevensMacquarieHUB24 or Powerwrap Platforms. Please contact your financial adviser for further information.

Sophisticated Investors may contact Quest directly to obtain an application form and other applicable documentation to invest via the Mason Stevens or JBWere Multi-Asset Platform application.

Institutional Investors sign an Individually Managed Account (IMA) agreement directly with Quest which can be tailored to suit their needs. Quest uses White Outsourcing for back office functions and Institutions elect the custodian. Please contact Quest for more information.

What is the primary difference between the Retail and Sophisticated Investor Portfolios?

Aside from having higher minimum investment amounts Sophisticated Investor investors are able to participate in wholesale capital raisings e.g. Initial Public Offers (IPOs). Retail clients can only participate in retail capital raisings. This can result in the portfolios having different holdings and performance however the portfolios are managed with the same Investment Process.

What are the minimum investment amounts?

– Mason StevensMacquarieHUB24Powerwrap – please see your financial adviser
– Quest/JBWere Multi-Asset Platform (Sophisticated Investors) -$250,000
– Institutions – provided on request

How long has Quest been managing Individually Managed Accounts?

Quest has been managing Individually Managed Accounts for over 10 fiscal years. Quest Sophisticated Investor portfolios have now delivered greater than market returns (post fees) for each of those 10 years. Retail portfolios became available in 2015.

Does Quest have an investment rating?

Yes. The Quest Australian Equities Concentrated Portfolio is rated by Lonsec Research Pty Ltd dated October 2015. Financial advisers can email quest@questap.com.au to request the rating and a full copy of Lonsec’s report.

What are the fees?

Mason StevensMacquarieHUB24Powerwrap – please see your financial adviser

Quest/JBWere Multi-Asset Platform (Sophisticated Investors)
– Management fee: 1.20% p.a. plus GST charged quarterly in advance. The management fee includes costs for both Quest and JBWere Limited.
– Quest Performance fee: 15% plus GST of return above 1.75% per quarter after deducting the management fee subject to a high water mark.

Institutions
– Institutional clients can negotiate fees directly with Quest. They may or may not have performance fees.

Who is JBWere Limited?

JBWere Limited provides investors with custodian services for their portfolio. They ensure purchases and sales are equitably divided across all investors to ensure portfolios are aligned. They also manage any residual cash holdings. JBWere Limited produce the quarterly and taxation reports and can also introduce their clients to Quest.

Who is Mason Stevens?

The Quest portfolio has been available through Mason Stevens since 2015. Mason Stevens are a dedicated team of professionals who believe investors should be able to access investment opportunities anywhere in the world. They provide investment solutions, execution, administration and reporting to financial advisers and their clients as well as sophisticated investors and family offices. Mason Stevens is a privately owned firm, majority owned by principals and staff.

Mason Stevens is the operator of the Managed Discretionary Account (MDA) service and is referred to as the “MDA Operator”. Mason Stevens has appointed a licensed sub custodian (National Nominees) to hold all client monies and financial products in accordance with regulatory requirements.

What reports do investors receive?

Quest and JBWere Limited produce a combined quarterly report for each investor. The report contains quarterly commentary from Quest, the current portfolio valuation and dividend income receivable at the end of the quarter together with all transactions and fees during the quarter. A full tax report is also provided.

Investors on other platforms receive the standard suite of reports provided by that platform which would generally include commentary provided by Quest. Please contact your financial adviser or the platform for more information.

Is it possible that I pay performance fees where the portfolio has fallen in value?

No it is not possible for Sophisticated Investors that invest directly with Quest to pay a Performance Fee in a falling market. Performance fees are subject to a high water mark which is the highest dollar portfolio value at the end of any quarter. The high water mark prevents clients paying any performance fee on a lower portfolio value.

Yes it is possible for clients that invest through Mason Stevens to pay Performance Fees in a falling market. This occurs when the Quest portfolio outperforms the S&P/ASX300 Accumulation Index.

Why limit yourself to 35 stocks?

Quest is a ‘best ideas’ portfolio. We limit the stock numbers in order to maximise both the quality of holdings and the weights held in each stock. In this way we seek to maximise potential returns.

Our mandate states that no more than 35 securities will be held in a portfolio and historically clients have held approximately 30 stocks. A Quest portfolio will be more volatile than the average Australian equity fund with the potential to deliver larger absolute gains or losses.

Does Quest short sell stocks?

Quest does not short sell stocks i.e. we do not sell stocks we do not own hoping to buy them back at a lower price. We believe our skill lies in finding good businesses and investing in them through to the attainment of what we see as fair value for that business. This target is likely to change over time as the company progresses. Our time frame is generally three years.

What is the investment structure?

Investors invest via a Separately Managed Account (SMA). This structure allows Quest clients to have their own individual portfolio that is almost identical to our other high net worth investors. The shares are held in the name of the applicable custodian on behalf of our clients.

In contrast to pooled investment vehicles or unit trusts, investors retain individual ownership of the underlying investments managed by Quest and there is no transfer of capital gains between clients. This may allow clients to benefit from the tax advantages from discounted CGT benefits.

The SMA is available on a number of platforms including Mason StevensMacquarieHUB24Powerwrap and the JBWere Multi Asset Platform. It is not listed on the ASX.

Are all the portfolios the same?

Each portfolio is very similar. All Quest client portfolios have the same portfolio weightings within an agreed variance. Some clients may be unable to invest in certain stocks for legal reasons i.e. if they are a director of a listed company. In that case, a substitute stock or cash may be held.

Does Quest pay a distribution?

No. The default is for all funds to be reinvested. A client can redeem all or part of their investment at any time (subject to platform minimums).

Does Quest’s performance appear in performance tables?

Yes. The performance of the Quest high net worth portfolio will appear in the performance tables along with other managers.

Does Quest use derivatives?

Quest does not use derivatives over Retail nor Sophisticated Investor client portfolios.

Quest may use derivatives for Institutional clients depending on the Mandate conditions.

Will Quest limit the total amount of funds it manages?

In our experience, managing very large pools of money can act as a potential constraint on fund performance. Quest is continuing to accept further investments from retail clients via platforms, high net worth investors and institutions with a current intention of capping total funds under management at $2 billion.

As an investor, will I have access to the Investment team?

Quest is a boutique fund manager and believes clients should have the opportunity to get to know the professionals managing their investments. In addition to quarterly reporting, Quest hosts small group sessions and larger Quest client functions throughout the year.

More questions?

If you have any questions, please contact Quest.