Investment
Sterling Financial knows how to work out the best investment strategies for you. Daniel, our in-house investment analysis expert, has the knowledge and experience to manage investments in a proactive manner through both direct assets and wholesale investment funds.
Investment strategy
One of your most important duties as Trustee of your SMSF is to establish an investment strategy for your fund that considers the retirement needs of all fund members to ensure it continues to match your goals and objectives.
Our investment process
We follow a structured investment process. The fund strategy is reviewed in our quarterly meetings and relies on a common sense approach. Our advanced quantitative and qualitative approach seeks to make the most of return opportunities while balancing the true underlying risk exposure.
Stage 1
Planning
In your important first consultation with us we develop a strong understanding of your financial needs and objectives as well as relevant personal and financial circumstances. We consider your tolerance to risk, your investment time frame and your objectives. We can then identify your risk profile and recommend a fund strategy, including why we recommend particular strategies.
Stage 2
Implementing
We build your tailored investment portfolio based on your risk profile (identified in the planning stage). As part of our overall focus on risk management we invest across a diversified range of assets including cash, fixed interest, infrastructure, property and Australian shares.
Stage 3
Monitoring and reviewing
We view your investment portfolio as a work in progress – it needs to be flexible enough to cater for changes in your circumstances and investment preferences. We schedule regular face-to-face meetings every 3 months so you have the opportunity to restate your investment objectives, time frame and attitude to investment risk. We also evaluate the performance of your portfolio and report on your investment as part of this regular review and analysis process. Basically, we want to be confident that your investment continues to match your needs.
Risk management
We are strongly focused on risk management across all aspects of our advice.
Two important tools for managing portfolio risk:
Long-term strategic asset allocation
One of the most important things when building your portfolio is deciding how your fund allocates your money across each asset class. This decision can affect as much as 80% of your investment performance. Setting a benchmark long-term asset allocation will help identify the risks and help ensure your fund achieves the desired outcome. We take a proactive and dynamic approach to asset allocation that takes into account changes in our medium-term outlook for asset class returns due to the impact of a changing economic environment.
Long-term strategic asset allocation
One of the best ways to reduce risk exposure is by spreading your money across a range of assets. You can achieve diversification in a number of ways: invest across a range of asset classes; hold a spread of investments within an asset class (such as different industries or companies); and use managed fund investments (when required) to capture a larger basket of assets than you would typically be capable of doing directly.
Please call us on 03 5338 8877 to make an appointment with a member of our team