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
  • 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.
See Pricing
Active

Management
  • 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.
See Pricing
Blended

Management
  • 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.
See Pricing
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Passive Management

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.

Low cost

The transaction fees involved in attempting to replicate an index with direct equities would be unreasonable for most investors. Exchange Traded Funds allow us to offer a low cost solution that achieves a high correlation to the asset classes in our allocation model.

Low touch

Investing doesn't need to be a highly involved "hands on" process. Passive Management allows an investor to let the ETF do the work keeping specific holdings in line, and let the allocation model re-weight asset class holdings.

Benchmark returns

Unlike Active Management in which an investor is attempting to outperform a benchmark at the risk of underperforming, Passive Management keep returns pegged to the performance of the asset classes you are attempting to replicate.

Highly diversified

Unlike Active Management in which an investor is attempting to outperform a benchmark at the risk of underperforming, Passive Management keep returns pegged to the performance of the asset classes you are attempting to replicate.

How we select our ETFs

Low Management Fees

Most of our clients tend to hold their investments for long time frames, which means every percentage point we can save on management fees translates into significant value down the track.

Low Tracking Error

We take a deep look inside each ETF to ensure they hold what they appear to. Additionally, we observe the daily traded prices and compare the price action to the underlying holdings to identify which ETFs closely track their corresponding index.

Low Buy / Sell Spread

Each ETF has a spread between what the provider is willing to buy it at and what they are willing to sell it at. The wider this spread, the more expensive it is to re-weight. We select ETFs with tight spreads allowing us to more efficiently manage weightings.

Speak to an adviser about Passive Management today.

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Active Management

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.

Domestic Large Cap Equities

Construct portfolios of direct shares using over and underweight benchmark positions. Take sector specific plays using sector ETFs and go over/under weight health care, technology etc

Domestic Small Cap Equities

Direct ownership of growing Australian companies. Achieve portfolio out-performance through careful stock selection and thoroughly researched ideas.

International Shares

Invest in global shares directly. Take larger weights in specific sectors using US listed Exchange Traded Funds.

Bonds

Access a range of direct bonds, term deposits and cash solutions. Build a portfolio of corporate and government Bonds directly.

Speak to an adviser about Active Management today.