OUR INVESTMENT PHILOSOPHY
We want to show investors that there is a better way.
We have researched the available investment options and believe an investment solution grounded in academic and science-based research supported by a robust process helps investors achieve better long-term outcomes.
It’s tempting to chase returns, the latest hot opportunity, or avoid investing through fear. Countless research papers show that “emotional” investing does not work and that many people make poor investment experiences.
Our core proposition is that capital markets (shares, fixed interest, property etc.) reward patient investors. The key is to implement a sound investment solution, supported by solid irrefutable evidence-based research.
That’s what we do, and………….
That’s what we stand for.
The Pillars of Investing Success
Keep Costs Low
It’s always been important to consider the cost of investing, however in a world of low-interest rates and lower returns, managing costs has never been more important.
The costs charged by investment managers and superannuation funds can range from an average of 1.42% to as high as 2.95%. High fees erode performance and importantly, your money.
The investment managers we use typically have fees from 0.20% to 0.50%. Importantly the same investment funds are highly ranked for market performance. In other words, you pay less for more.
Follow What Works
There is a staggering amount of material written on investing, a vast media industry built around financial markets, and thousands of people employed in the investment industry.
Many of those media outlets, market analysts, stockbrokers, and advisers are all trying to predict the movement of financial markets. And they are all trying to tell you (the investor) how they can get you a better return.
However, decades of research confirm that no-one can predict markets or prices with any consistency no matter how big the institution, or how much information they have at hand. According to the S&P Dow Jones Indices site www.spiva.com on average, less than 20% of “Active” Professional Investment Managers can “beat” the market over 5 year periods, and only around 5% over 10 years.
This means only around 5 in 100 can consistently outperform markets over the long-term, the results for other sectors of the industry (stockbrokers, advisors, research sites, and subscription services) fare just as poorly. Yet the public continues to get sucked into the drama.
Rather than try to forecast the future or the latest investment fad, we focus instead on capturing the returns available in markets in a tried and true systematic way. We prefer evidence-based methods and financial science when we recommend investment solutions for clients.
This provides clients with a reliable investment process to help them achieve their objectives with certainty.
Focus on Long-Term Goals
The financial media industry makes a lot of noise, with never-ending opinions, forecasts, and predictions. Headlines often scream fear, mayhem or riches designed to make the investing public worry or feel if they are not invested in the latest “good thing”, they are missing out. Any wonder people get sucked into this “news”; it’s hard not to do so.
Instead, we help our clients understand what they can and can’t control. To help them navigate uncertainty and opportunity and to stay focused on their long-term objectives. We build investment strategies designed for life and help them understand the relationship between risk and return.
Staying disciplined to the process is what separates successful investors from those who miss out.