Professional Asset Allocation
A unique approach to portfolio construction
Using Nobel Prize winning portfolio theories, our asset allocation platform allows investors to optimise portfolio exposures across the major global and domestic asset classes with ease. Using our technology as the backbone for portfolio weightings, we assist our clients with investment selection in passive or actively managed stocks, bonds, REITs, and ETFs. Our goal is to provide clients with the lowest level of volatility risk for their desired return, whilst providing a complete, simple, and optimised solution for all of their investment needs.
Optimising Risk Adjusted Returns
Using the latest research to design our asset allocation algorithms, we are able to identify the optimal mix of assets for any desired risk profile. It is this optimisation process that sets us apart. Whilst investment advisers may have you 100% invested in Australian Shares, theory tells us we can enhance risk adjusted returns by diversifying across uncorrelated assets in appropriate weights.
Common-sense tells us lower risk portfolios should have a higher weighting in defensive assets like Bonds, whereas higher risk portfolios should have a larger weight in stocks, but it is the process of finding the optimal (most efficient) mix of assets that our science reveals it's true value.
Flexible Management Styles
- Passive management refers to investing in indices (like the ASX 200) which represent each asset class. We utilise Exchange Traded Funds as they are simple, low cost, and extremely diversified.
- Active management means investment selection is decided by you and your adviser. Active management has potential for outperformance through careful investment selection, but increases concentration risk as transaction costs inhibit diversification.
- Some investors may prefer a blend of both approaches, allocating some of their wealth to the security and simplicity of a Passively Managed approach, and take an Active approach to individual stocks they believe in.
Asset Allocation is just the first step. Our model provides the weightings to each asset class, the next decision is how to implement each asset class.
How we select our ETFs
Speak to an adviser about Passive Management today.
An Active management approach to portfolio construction and management involves taking specific sector or stock positions within an asset class in order to gain exposure. An Active manager aims to outperform the given index or benchmark through careful investment selection. We are able to offer active management services on Domestic and International Equities, Bonds, and Listed Property.