There are many factors and characteristics I look at when it comes to analysing ASX shares.
I like to understand the business inside and out. Identify if the company has any sustainable competitive advantages. Dig into the industry landscape, various growth drivers, and key risks.
But another important consideration is the management team.
And when it comes to assessing who's steering the ship, one big tick in my book is skin in the game.
When a management team holds a meaningful chunk of shares in the business they're running, it helps to align their interests with shareholders. After all, their money is on the line as well.
With this in mind, here are three ASX 200 shares boasting significant insider ownership.
Image source: Getty Images
Reece Ltd (ASX: REH)
First up, we have an ASX 200 share with a history that dates all the way back to 1920, when H.J. Reece started selling hardware supplies from the back of his truck. Later that year, he opened the very first Reece store in Caulfield, Victoria.
In 1969, on the same day that humans first stepped on the moon, the Wilson family became majority shareholders in Reece. And from here, a beautiful partnership was formed.
Fast forward half a century and Reece is a leading distributor of plumbing and HVAC-R products through more than 800 branches in Australia, New Zealand, and the United States.
Three generations of the Wilson family have been involved in taking Reece to new heights. The company is currently led by Peter Wilson. Meanwhile, his father Alan, who held the CEO reins for 40 years, remains an executive director on the board.
Over the years, there have been many family members involved in the business, several of whom hold shares through various investment vehicles. This makes it hard to pinpoint the exact number of shares held by the Wilson family, as various shareholding notices and disclosures often relate to the same shares.
But from Reece's 2022 annual report, we know that the Wilsons hold interests in at least 362 million Reece shares. This represents roughly 56% of the company and is worth a monstrous $5.4 billion at current prices.
Over the last 10 years, Reece shares have delivered share price gains of around 250%, not to mention consistent dividend income.
Netwealth Group Ltd (ASX: NWL)
Next up, Netwealth is another ASX 200 share with strong family ties.
With a passion for finance and building businesses, Michael Heine launched the wealth management platform in 1999.
Positioning itself as a superior, independent alternative to the incumbent platforms, such as those offered by AMP Ltd (ASX: AMP) and BT, Netwealth has shaken up the industry.
Today, it's the fastest-growing platform provider by net funds flows in Australia. In the 12 months to June 2022, it accounted for 45% of industry net funds flows, raking in $13 billion.
It's a family affair at Netwealth, with Michael and his son Matt sharing the reins as joint managing directors.
Together, the pair hold combined interests in nearly 128 million Netwealth shares, representing roughly 52% of the business. With Netwealth shares last closing at $13.92, these holdings are currently worth a whopping $1.8 billion.
Since listing on the ASX almost five years ago to the day, Netwealth shares have soared 160% whilst also paying out dividends along the way.
Lovisa Holdings Ltd (ASX: LOV)
Last but not least, ASX 200 jewellery retailer Lovisa also boasts strong insider ownership.
The company began in 2010 when former CEO Shane Fallscheer spotted a gap in the market for on-trend fashionable jewellery at ready-to-wear prices.
Prior to this, Fallscheer had been managing Diva, a tween jewellery chain owned by veteran retailer Brett Blundy. Diva was growing quickly but its narrow, young customer demographic meant there were question marks over the company's long-term sustainability.
So, Fallscheer came to Blundy with a proposal for Lovisa. And the rest is history.
In the years that followed, Diva's stores were either closed down or rebranded to Lovisa, which had discovered a sweet spot in the market.
Today, Lovisa is truly a global force, with a network of 676 stores across 26 countries. Its store rollout and international expansion continue at pace, with the ASX 200 retailer on track to open its first stores in Italy, Mexico, and Hungary in the coming weeks.
After leading the company for 12 years, Fallscheer stepped away from Lovisa in 2021 and has sold his shares.
But Blundy continues to chair the board and through his private investment company, BB Retail Capital, he retains a hefty 40% stake in Lovisa.
This stake seems to be getting more valuable by the minute, with the Lovisa share price going from strength to strength. It's been able to brush aside concerns of rising interest rates and inflation to shoot 58% higher over the last six months, lasting trading at $24.45.
