Approach

​Each client will have unique circumstances and importantly so are your investment preferences and tolerances.

 

As your wealth management ally, we will take you through an investment preference and risk tolerance exercise that looks at the following:

 

  • Risk Tolerance – we commence this process with a questionnaire that will explore your attitudes towards risk and reward.  From here we will then analyse whether your answers are consistent, delve further into how much risk you can tolerate and finally how you handle loss in the portfolio.

  • Gap Analysis – just because you can tolerate risk in your portfolio doesn’t necessarily mean you have to.  We look at your available capital and compare this to the return required to meet your income requirements and other objectives.  By understanding the level of gap between the two, we can provide you with alternative investment options to ensure you meet your requirements with as little risk as possible.  Alternatively we may provide you with options on how to bridge this gap either by taking on more risk (and understanding the consequences) or adjusting your goals accordingly.

  • Investment Preferences – each client will have their own views and preferences on investments, therefore it is important that we build a solution that takes these views into account.  Due to this we have a meeting tailored to understand your view on various investment approaches.  Some examples include:

    • Discretionary or Collaborative – do you want us to have management discretion on your investments in accordance with a pre-determined mandate without you having to approve every trade or would you prefer to approve potential trades beforehand?

    • Dynamic or Strategic Asset Allocation – do you want your asset allocation to move over time in accordance with our investment committee’s research or would you prefer your capital invested in a set manner which is rebalanced on a pre-determined schedule?

    • Exchange Traded Fund or Individual Company approach – would you prefer to have our portfolio managers invest in a range of underlying broad market / sector specific exchange traded funds or do you prefer investment in a smaller amount of direct companies from Australia or overseas?

Investment Philosophy

Our preferred investment solution centres around a discretionary, proactive and individually managed investment approach for your personal situation. This provides controllable alpha for your investments through liquidity, implementation, asset allocation, transparency, re-modelling and tax decisions.


At Allied Wealth we believe that being active with the asset allocation in a portfolio is the most important driver of returns and importantly protecting capital.


We employ a “move to cash mandate” across our investment strategies which allows us to move 100% of the portfolio to cash if valuations merit such action. Through this process we seek to avoid identifiable bubbles. We never buy expensive assets - we will sell expensive assets slowly and we are prepared to reduce our exposure to nil for very expensive assets.


We implement an overweight stance in asset classes where we expect good future returns, though we do limit overall exposure to risky assets depending on the client’s risk tolerance. Expensive assets produce low future returns and often also means impending large capital losses, and hence we reduce or eliminate exposure to these asset classes.   

Investment Committee

Our investment committee is comprised of external professional investment managers to review and manage your portfolio.  This ensures your portfolio is managed day to day, not only at reviews. Our role is to continuously monitor the Investment Committee and managers to ensure they are acting in accordance to the direction we set and continue to meet our performance and protection expectations.

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Jon Reilly

Chief Investment Officer

Jon has operational responsibility for ensuring that the collective decisions of the committee are reflected in client portfolios. Jon has 14 Years experience in the financial services industry, initially in providing advice to individual clients and later managing the Individually Managed Account (IMA) Service of a leading private wealth firm.  Jon is a Certified Investment Management Analyst (CIMA) and brings extensive experience in the day to day management of the MDA Service.

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Tim Farrelly

Committee Member

Tim has been pre-eminent in providing asset allocation advice in Australia since 2000.  Tim brings a unique combination of analytics, understanding of financial markets, knowledge of capital market history and insight into the practical requirements of portfolio management.  Tim was an executive director of Macquarie Bank Ltd and a Director of Macquarie Investment Management Ltd.  During his 14 years at Macquarie he sat on the Asset Allocation and Risk Committees and was responsible for the long term forecasting program in 2000 which predicted the bear market in US Equities, using the same principles that are the foundation of our investment process.

Jonathan Pain

Committee Member

As a leading macro economist, Jonathan provides regular commentary on the key events which are likely to shape and define capital markets over the years and decades ahead.  Jonathan was formerly Executive Director and Chief Investment Strategist of HFA Asset Management.  He has over 20 years of international investment experience including Chief Investment Officer of Rothschild Australia Asset Management.

Paul Dortkamp

Committee Member

Paul specialises in investment process and compliance having been involved in the Australian securities industry since 1971.  Having worked at the RBA managing all major asset classes and as head of asset allocation at Colonial First State he now has his own consulting business and is a key member of the investment committee.