Our Investment Philosophy

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How We Work

We take a thoughtful and thorough approach to researching, analyzing, and managing investments. Handling client wealth is both a privilege and a serious responsibility, so we ensure our investment services reflect this level of care.

Portfolio Construction

Building a strong investment portfolio is key to helping you reach your financial goals with confidence. In conjunction with our external team of Investment Consultants,  we carefully assess the risks and potential rewards of each investment before making recommendations.

We consider factors such as income potential, tax benefits, market trends, costs, and economic forecasts to shape a well-balanced portfolio. Our investment committee and Investment Consultants, review the portfolios on a quarterly basis, and make adjustments as and when needed to keep them aligned with changing market conditions.

Exchange Traded Funds (ETFs)

We use Exchange-Traded Funds (ETFs) to gain exposure to different asset classes, markets, and industries while managing risk effectively. In some cases, we complement ETFs with individual stocks or securities to enhance returns and further diversify investments.

ETFs provide broad diversification, helping to reduce overall risk and improve the consistency of returns. By taking a top-down approach, we focus on big-picture market trends to simplify portfolios, minimize volatility, and improve the likelihood of achieving financial goals.

Additionally, we carefully select ETFs that accurately represent their stated investment strategy. Many managed funds have misleading names, such as "Dividend Imputation," which may not always deliver strong tax benefits as implied. Similarly, some "Balanced" funds can hold significantly more growth assets than expected. Our goal is to ensure transparency and clarity in the investments we recommend.

Risk Profiling

We assess each client’s comfort level with risk to tailor investments accordingly. However, risk tolerance isn’t the only factor—we also consider investment timeframes, market conditions, and economic trends when designing a portfolio.

While we strive to build strong portfolios, unexpected events—such as geopolitical issues, government policies, or company-specific challenges—can impact investment values. This is why higher-risk assets, like stocks, generally offer greater potential returns.

Markets don’t always move based on logic; emotions like optimism and fear can drive prices up or down beyond fundamental value. We monitor these shifts to make informed decisions, adjusting portfolios when opportunities arise.

Investment cycles take time, and patience is essential. Our role is to guide you through market ups and downs, helping you stay focused on long-term success while avoiding emotional reactions to short-term fluctuations. The media often amplifies market trends, but staying disciplined with your investments is key to achieving lasting financial results.

Outcomes

As a result of this approach, LifeTime Financial Group has achieved long-term returns that are the envy of others. And we have achieved this without resorting to unlisted assets. Finally, our portfolio costs, thanks to the extensive use of ETF's, are a fraction of Managed Fund and Industry Fund arrangements.

Why not take the next step and talk to one of our highly qualified financial planners? 

LifeTime Financial Group are specialist (holding appropriate accreditations) advisors who are ideally positioned to assist you with your plans for your financial future.

If you would like to discuss your wider financial planning needs, why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.

Alternatively, please make an appointment using our online Book an appointment (Blue button above)

LifeTime Financial Group. A leading privately owned Melbourne-based Financial Planning practice with no ties to any Banks or Financial Institutions.

 

Our current thinking on investment opportunities

  • An increased bias to international markets – primarily driven by currency gain expectations, but also influenced by regional/sector/shareholding diversification.

  • A reduced concentration to Australian banks – as a result of government regulation changes reducing the profitability of ASX listed banks.

  • A reduced bias to US shares – as a result of an extended period of out performance.

  • Higher weighting to smaller companies – after years of under performance and neglect.

  • Increased allocations to Asia, Japan, Europe – offering (relative) value.

  • An avoidance of listed or unlisted property – As years of cheap debt have inflated prices in this asset class, compounded by most households owning and having residential property as their biggest investment.

  • Avoiding government debt – which devalues in price when long-term bond yields rise. Given these yields are trading at decade lows, there seems to be more downside than upside.

  • A preference for term deposit over cash – for excess liquidity or capital security. Yield’s on term deposits can provide up to 1% additional annual income return (with the only compromise being accessibility).

  • Use of hybrid securities (floating rate convertible securities) to provide a calculated risk-return outcome, that delivers strong (equity-like) yields, with less pricing variation than shares. Their use allows reduced share & term deposit allocations, with arguably a more consistent overall performance (and more certain outcome), compatible with what we try to achieve for clients.

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