As a risk-based practice, our process extends to our approach to investments.

As with insurance, so with investments; before developing or implementing any strategy, we seek to identify and articulate the investment risks.

Investment is an uncertain business. For each investment option, there is a range of potential outcomes, both positive and negative, that can arise. The greater the range of potential outcomes, the greater the risk experienced specific to a particular investment.

We look at the investment process as one of managing risk through investment.
 
1. Investment risk
2. Inflation risk
3. Horizon risk
4. Liquidity risk
5. Interest rate risk
6. Market risk
7. Market timing risk
8. Business risk
9. Regulatory risk
10. Mismatch risk
11. Operational risk
12. Longevity risk
13. Exchange rate risk
 

Our FSG spells out the breadth of our capability to advise on investment products.

Our aim is demystify the financial planning process and assist you in developing an investment strategy. We will introduce you to the products and services available, outline all the risks, and then implement a strategy using the products available.

The timeframe for any investment should be measured in years, and for superannuation, a lifetime. We also encourage you to enlist the advice from your other professional advisers.

The simple facts are that there are three asset classes:

  • Shares
  • Property
  • Cash

There are three points of entry:

  • Direct – using your own research, but limited diversification.
  • Managed Funds – capitalising on expert research with instant diversification
  • Managed Funds – with advice

We have access to all three asset classes and refer you to appropriate sources for implementation.
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1. Investment risk
That the actual investment returns are different from expectations.  This is the risk that a chosen investment performs will perform poorly, and will not fulfill its expectations in helping the client to achieve financial goals.
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2. Inflation risk
Also known as purchasing power risk; that the real return of an investment is lower than expected when inflation is taken into consideration.
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3. Horizon risk
That the investment will not perform as expected within the time frame or investment horizon of the individual investor.
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4. Liquidity risk
That the investor will not be able to redeem his funds when wanted. Direct property is generally considered illiquid.
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5. Interest rate risk
This is the risk that investors in the short term and long term money markets will experience a reduction in interest rates and thus returns from their portfolio.
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6. Market risk
This is the risk that the market in which investments are held perform poorly compared to other markets, or that all markets perform badly.
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7. Market timing risk
Is the risk that the investor mistimes entry into a particular investment, with a detrimental effect to returns or resulting in a loss.  Many investors believe that they can time their entry into the market to maximize returns. In practice, this is nearly impossible, and is a compelling argument for a long term investment horizon.
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8. Business risk
That specific companies will perform poorly due to inefficient or ineffective management or poor administration, and therefore their share price will suffer.
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9. Regulatory risk
That legislation changes will lead to a product or strategy adversely affecting investors.
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10. Mismatch risk
That the product or strategy does not meet the client’s needs or requirements, or is not appropriate for the client’s financial objectives.
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11. Operational risk
That human and technological failure, or failure of operating systems causes financial loss.
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12. Longevity risk
That an individual outlives personal retirement savings and will then need to rely on government welfare.
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13. Exchange rate risk
Is the risk that an overseas investment will depreciate with a change in foreign exchange rates, or that an investment will be adversely affected by changes in foreign exchange rates.