The CARE Philosophy

The investment philosophy where good behaviour and SMART decisions make all the difference.

The “C” in CARE stands for “Core” investments. The Core of a CARE portfolio is made up of a range of Exchange Traded Funds (commonly called ETF’s) and fixed interest fund managers that are single sector, single manager securities and funds that are constructed to be invested according to your risk profile. Your Core investments, together with your risk profile are a strategic mix of Cash, Fixed Interest, Property, Australian shares and bonds, and overseas shares and bonds.

The “A” in CARE stands for “Active” investments. This is a tactical blend of ETF investments which includes Australian Shares, Global Shares, Emerging Market shares, Global Small Companies and Gold. The Active component within the portfolio is designed to take advantage of long term market themes and attempt to smooth your total portfolio return by systematically adjusting allocation to undervalued or overvalued asset classes.

Used when income is required from your portfolio

The “R” in CARE stands for “Reserves”. This is a very important part of the overall investment strategy that looks to benefit you in two ways. The first is that it provides a steady income stream with a very low risk to capital. The second benefit is that we recognise that volatility and capital loss have a probability of occurring in the short term. By allowing enough time for investment in shares and property to grow, the risk of you having to sell assets in times where markets are declining is mitigated.

Reserves are an important component of CARE where we set aside up to four years of any income requirements, especially for retirees, because in volatile markets if you don’t have enough Reserves you may have to sell assets to provide sufficient income, or worse: you may panic and sell. The Reserve is a good buffer for peace of mind and to assist you with the cash flow you need during these investment downturns.

Lastly, the ”E” in CARE stands for “Enhanced”. This portfolio is made up of Australian and overseas shares, held either directly or through managed funds or ETF’s. Listed Australian shares will predominantly be selected from the largest 100 Companies on the Australian Securities Exchange (ASX).

These companies generally produce good dividends for our clients. Investors also have the option of investing in a portfolio of international shares managed by a specialist manager or via an exchange traded fund (ETF). The Enhanced looks to deliver above market returns or “Alpha” as it is called in investment circles.