Hugh Robertson has been listed among Barron’s Top 150 Financial Advisers in Australia, as published in The Australian on the 21st of November, 2024. This prestigious recognition highlights Hugh’s exceptional commitment to providing outstanding financial advice and building lifelong partnerships with clients.
As part of this honor, Hugh was selected to share his expertise in The Australian – Deal Magazine. In this feature, he addresses four pivotal topics shaping the financial advice landscape:
Key Takeaways from Hugh’s Insights
- The Financial Advice Industry
Centaur’s success stems from its focus on evolving client needs and four key pillars: strong investment results, holistic advice, exceptional service, and reliable outcomes. Hugh also credits ongoing education and certifications for ensuring clients receive top-tier strategies and advice. - Private Investments
While private investments offer high returns, Hugh warns they require expert guidance due to their risks and illiquidity. He highlighted the emergence of semi-liquid products that could benefit everyday Australians if approached with the right strategy. - Preparing for Retirement
Transitioning from wealth accumulation to preservation is crucial for pre-retirees. Hugh emphasizes the need for balanced portfolios, sustainable income strategies, and ongoing exposure to growth assets to combat longevity and inflation risks. - Understanding Risk Tolerance
Many clients struggle to articulate risk tolerance. Hugh recommends reflecting on financial goals and emotional resilience to market volatility. Advisors play a key role in aligning risk profiles with long-term objectives.
Hugh’s thoughtful responses reflect his passion for empowering clients with the knowledge they need to achieve their financial goals. His inclusion in The Deal magazine is yet another testament to his expertise and leadership in the financial planning profession.
Want to read Hugh’s insights in full? Simply click here or view the below-selected pages from the Magazine.
Excerpt below:
Financial advice industry numbers have been cut in half; you are in the tiny minority that managed to get on our Top 150 list. Why do you think you made the cut
Centaur started out in 2009 with not much. We built the business the way most self-employed people have – we worked crazy hours and tried to help as many people as we could. Over the years we have become more streamlined in our operations, but the key is we have built the business around our evolving client needs. There are four key components to a successful firm in my mind: 1. Strong investment results; 2. A holistic advice model covering tax, estate planning, risk management, debt minimisation, etc; 3. A great client service offering where clients are known by the whole team, and; 4. Reliable outcomes. No shiny new toys, just proven principles well executed. In addition to focusing on the quality of our client relationships, we focus a lot on ongoing education. Qualifications and certifications keep you up to date with what is happening in both the academic and real world, so that we can deliver the best strategies and investments to continually improve our clients’ lives.
Rich Australians are apparently rushing into “private” investments. Is it too late for everyone else to join the party?
No, it’s not. But you do need expert guidance as it’s important to approach them with caution and a clear understanding of the risks. Private investments – such as venture capital, private equity, private credit, or direct property – traditionally have been illiquid, meaning your money is tied up for long periods, and they come with a higher degree of risk than more traditional investments. For wealthy investors, these options may represent a smaller portion of a well-diversified portfolio, whereas for everyday investors they could represent a significant risk if not managed properly. While private investments can offer high returns, they aren’t suitable for everyone. Investors need to assess their risk tolerance, time horizon and overall portfolio strategy before jumping in. Client education is important in this area. There are a lot of great products coming into Australia now and semiliquid products could really help build more robust, all-weather portfolios for everyday Australians using private markets and alternative asset classes.
For pre-retirees, what do you find to be the most important thing they need to think about?
For pre-retirees, the most important consideration is transitioning from wealth accumulation to wealth preservation. As retirement approaches, shifting from high-risk, high-reward strategies to a more balanced portfolio that helps to protect their capital becomes
important. They need to ensure their assets will provide a sustainable income throughout retirement, which involves careful planning around superannuation drawdowns, investment strategy, lump-sum liquidity needs, and potential healthcare or lifestyle expenses. Additionally, pre-retirees should focus on understanding their ideal retirement lifestyle and budgeting accordingly. Knowing how much income they’ll need to maintain their desired standard of living – and having a clear strategy for generating that income – is key to retiring with confidence. Estate planning is also an important consideration, ensuring their wealth is protected and passed on according to their wishes. Clients may live 30+ years in retirement, educating them that they maintain exposure to growth assets for the rest of their lives to help combat longevity risk as well as inflation risk is vitally important. One of the biggest tragedies I’ve seen is people who have sacrificed many years working past the point they could have been financially retired. Seeking advice sooner may mean that you can retire earlier with peace of mind you are going to achieve your lifestyle and financial goals for your retirement.
When you ask first-time clients about their risk tolerance, what can these clients do to formulate the correct answer?
We say past performance is not an indicator of future performance, but past behaviour tends to be a predictor of future behaviour. Research from big institutions such as Vanguard, Morningstar and Russell has illustrated the value of financial advisers educating clients on the behavioural side of investing. Protecting clients from their own behaviour turns out to be an important source of value-added return. First-time clients often struggle with articulating their true risk tolerance because they may not fully understand the implications of market volatility or long-term investment horizons. To formulate the correct answer, clients should start by reflecting on their financial goals, time frames, and emotional comfort with potential losses. How would they react if their portfolio temporarily dropped by 10 per cent or 20 per cent? What is their ability to recover from losses based on their income and savings? Running through different market scenarios with an adviser can help clients gauge their emotional and financial resilience to risk. Additionally, clients should consider their investment goals – short-term savings require different risk levels than long-term retirement goals. A professional adviser can guide clients through a risk assessment, aligning their portfolio with their comfort level and objectives.
