Investment success isn’t about chasing hot tips or timing markets. It’s about sticking to proven principles that work over the long term: Intelligence, Action, Patience and Discipline.
We’ve built an Investment Committee that combines our team’s expertise with external research capabilities from Evidentia Group – giving us access to institutional-grade analysis and investment solutions typically reserved for large institutions. This means you get sophisticated portfolio construction and ongoing management focused entirely on what’s right for you.
Our Investment Philosophy
These 12 principles guide every decision we make about investing your money.
Preservation of capital is key
Investing isn’t just about growing your wealth – it’s about protecting its real purchasing power. Fees, taxes, and inflation constantly erode the value of your money. Our first job is making sure your capital grows enough to outpace these forces, preserving what you’ve built so it can support you throughout retirement.
Risk and return are related
Achieving returns greater than cash requires taking on risk, but it only makes sense when the rewards outweigh the risk itself. Markets are efficient over the long term.
While there’s volatility in investment markets, over the long term growth assets – Australian shares, international shares, and listed property – have consistently delivered returns that outpace inflation, taxes, and fees.
Time in the market over timing the market
We don’t speculate on where markets will be next month or next quarter. No one can predict short-term movements with certainty, so we stick to proven principles of long-term investing. We invest for the long term, not the short term.
Diversification reduces risk
We diversify at three levels: across asset classes, fund managers, and investment styles. This approach reduces risk and delivers smoother, more consistent returns.
Active and passive management both have a place
Passive investing tracks market indexes at a lower cost. Active management involves making strategic decisions about asset allocation and fund selection to take advantage of market opportunities. While markets are efficient over the long term, there are short-term inefficiencies that active management can capture. A neutral position would be to have half your portfolio actively managed and half passively managed.
Currency management is strategic
We look at investments themselves and peripheral factors like currency and liquidity. Currency hedging locks in exchange rates to protect against volatility. Our neutral stance is to hedge half of international share and property portfolios, and fully hedge all fixed income exposure.
Liquidity is important
We prioritise investments that can be quickly converted to cash when needed. This liquidity means never being forced to sell at unfavorable times during market stress. We saw illiquid assets trap investors during the global financial crisis, and will accept slightly lower returns to maintain this flexibility.
Fund managers can add value
Professional fund managers can add long-term value through superior research, knowledge, and experience, playing an important role in portfolio management. They can decrease risk by avoiding problematic stocks that index managers are forced to hold.
Monitoring investment markets is essential
Active monitoring of markets and asset allocation is critical to long-term success. Conditions change – stocks can become unsuitable, fund managers leave, investment dynamics shift. Regular review ensures portfolios remain fit for purpose.
Rebalancing portfolios makes a difference
Buy low, sell high sounds simple, but most investors struggle to do it. Through disciplined rebalancing at set intervals, we systematically sell assets that have outperformed and buy those that have underperformed – bringing portfolios back to target allocations. This prevents portfolios from drifting away from their intended strategy.
Total return is the main metric
We focus on total return and structure portfolios to provide regular income while maintaining capital you can access when lump sums are needed. This approach is more reliable and flexible than chasing high-income investments.
Third-party custodians provide peace
of mind
Holding investments with independent third-party custodians subject to rigorous ongoing oversight provides confidence that investment strategies are reputable and your assets are properly safeguarded.
How We Invest
We don’t have a one-size-fits-all investment approach because no two clients are the same.
Depending on your situation, we might recommend:
Every portfolio is tailored to your stage of life, your goals, and your risk tolerance.
Separately Managed Accounts
A Separately Managed Account is a professionally managed investment portfolio held in your name. Unlike a traditional managed fund where you own units, with an SMA you directly own the underlying assets – Australian shares, international shares, bonds, and cash.
Why we created them
We created our SMA portfolios for clients who are transitioning from building wealth to relying on it, or already doing so. As financial decisions carry more consequence later in life, the focus shifts from growth alone to ensuring wealth is durable, adaptable, and fit for purpose over the long term.
These portfolios are designed to address three risks that matter most as wealth is drawn upon or prepared for use:
Longevity risk – running out of money
Sequencing risk – poor returns early in retirement
Inflation risk – your money losing purchasing power over time
Who SMAs are for
Separately Managed Accounts work best for clients who:
