A Clear, Proven, and Cost-Effective Investment Strategy
For most people, investing is the most complex and stressful part of their financial life. It’s often treated as a “black box” where you’re not sure what you’re paying for, or why.
Our philosophy is different. We believe in transparency, evidence, and a common-sense approach that gives you the best of both worlds: Index Strength and an Active Edge.
We don’t chase “hot tips” or try to time the market. Instead, we use a proven, institutional-grade strategy called the Core-Satellite approach.
This framework is the foundation of how we build your portfolio, designed to be disciplined, diversified, and highly cost-effective.
What is the Core-Satellite Approach?
The old debate was “Active vs. Passive.” The modern solution, and our core philosophy, is about how to best combine them. The Core-Satellite model provides an excellent framework for doing exactly this.
It’s a sophisticated strategy that gives you the best of both worlds.
1. The “Core”: Index Strength
The “Core” forms the stable foundation of your portfolio. This part is built using low-cost, broadly diversified index funds and ETFs.
These funds don’t try to “beat the market”—they are the market. This approach provides:
- Low Costs: A primary driver of long-term wealth.
- Broad Diversification: Helps to insulate your portfolio from the volatility of any single stock or sector.
- Tax Efficiency: Lower portfolio turnover typically results in more favourable tax outcomes.
- Discipline: It provides a stable, long-term foundation for your strategic asset allocation.
2. The “Satellites”: The Active Edge
Once the low-cost Core is in place, we can add “Satellites.” These are smaller, targeted investments designed to seek outperformance (alpha) or “tilt” the portfolio toward a specific sector, style, or high-conviction idea.
This allows us to leverage the research of professional active managers in specific areas, giving you the potential for outperformance while managing risk and cost.
Our Investment Philosophy: Your 3 Pillars
Our strategy is the direct expression of our core investment philosophy, which is built on three simple pillars.
- 1. Balance We avoid uncompensated risks by building a well-diversified portfolio. Because all investing involves risk, we manage the balance between that risk and the potential reward by carefully choosing your portfolio’s holdings. This combination of asset classes is the primary driver of your portfolio’s returns over time.
- 2. Cost We are relentless about minimising costs. While investment markets are unpredictable, investment costs can be controlled. Costs create an inevitable gap between what the market returns and what you actually earn. Keeping expenses down is the most effective way to narrow that gap and improve your long-term wealth.
- 3. Discipline We ensure commitment to your long-term investment plan. Spontaneous departures from your strategy, like “chasing winners” or panic-selling during a downturn, are rarely effective and can be very costly. Discipline and perspective are the qualities that help you remain committed to your plan through all market cycles.
Our Investment Process: How We Work With You
Our philosophy is put into action through a clear, three-step process designed to give you clarity and confidence.
Step 1: Discover Your True Goals
Everything starts with a thorough assessment of your personal situation. We take the time to understand your financial goals, your time horizon, and, most importantly, your true tolerance for risk. This “risk assessment” allows us to set the Strategic Asset Allocation—the right mix of defensive and growth assets for you.
Step 2: Build Your Core-Satellite Portfolio
Once we have your strategic plan, we build the portfolio. We don’t use a “one-size-fits-all” product. We conduct thorough due diligence to build your portfolio from the ground up, selecting high-quality, low-cost index funds for your “Core” and researching specific managers or ETFs for your “Satellite” tilts.
Step 3: Monitor, Rebalance, and Report
Our work isn’t “set and forget.” We practice discipline by:
- Monitoring: We continually monitor your portfolio and the market.
- Rebalancing: We periodically rebalance your portfolio. This means selling assets that have “won” and buying assets that are low, forcing a “buy low, sell high” discipline and ensuring your portfolio stays aligned with your target.
- Reporting: We provide regular reviews to show you exactly how your investments are performing and to ensure the strategy remains aligned with your long-term goals.
Ready to Build a Smarter Portfolio?
Your first consultation is a no-obligation initial chat to see if we can be of help to you. With our advice we’ll show you how our Core-Satellite approach could improve your diversification, reduce your fees, and give you a clearer path to your goals.