How We Invest

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 mullti-sector, multimanager securities and funds that are invested according to your risk profile. Your Core investments, together with your risk profile are a strategic mix of Australian shares and bonds and overseas shares and bonds including property and other assets.

The “A” in CARE stand for “Active” investments. This is 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 t  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.

The “R” in CARE stands for “Reserves”.  This is a very important part of the overall investment strategy. The Reserves portfolio, 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 market periods that are declining is mitigated. Reserves are an important component of CARE where we set aside 4 years of Reserves, especially for retirees, because as markets drop, if you don’t have enough Reserves 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 market downturns.

Lastly, the “E” in CARE stands for “Enhanced Returns” portfolio. This portfolio is made up of Australian and overseas shares, held either directly or through managed funds.  Listed Australian shares will predominantly be the largest 100 on the Australian Securities Exchange (ASX). These companies 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 Returns portfolio is sometimes also referred to as the “Alpha” return portfolio because at different times during market cycles, when blue chip companies perform extremely well, they exceed average market returns.