Stonehouse offers tailored investment solutions for our clients. By bringing innovation together with intelligent portfolio management we aim to protect and increase our client’s wealth to provide assurance of a stable financial future.
Our investment methodology is founded on the following principles:
Holding an astute mix of assets and strategies that have attractive risk and return characteristics and are sufficiently robust to withstand varying economic and market conditions.
Preservation of Capital
Aiming to limit losses during difficult market conditions via methods such as dynamic asset allocation and the use of alternative investments which are designed to take advantage of volatile or downward trends in markets. This is crucial to the method of generating and sustaining long term wealth.
Regularly monitoring investments and actively reallocating portfolios from both an asset allocation and individual investment standpoint to help ensure optimal results and minimise the volatility associated with the common ‘index’ or ‘strategic’ approaches.
Value Based Investing
Constantly analyse asset class valuations to establish those that are under and over-valued relative to their ‘intrinsic value’. We aim to invest in assets that are cheap or, undervalued, and take profits or rebalance when markets become overvalued to help protect and preserve capital.
Core and Satellite Investment Approach
Stonehouse utilises a tailored ‘Core + Satellite’ investment approach in-line with your respective risk tolerance and other relevant considerations. This allows us to control portfolio risk and potentially enhance investment returns. The method is further described below:
The ‘Core Value Portfolio’ (CVP) is a diversified investment designed to be the core, or foundation, of your overall investment strategy. Incorporating Stonehouse’s principles of investing, the Portfolio seeks to achieve growth in all market cycles to deliver long term wealth creation, with a strong emphasis on capital preservation. The CVP is an ASIC registered managed investment built specifically for Stonehouse clients. The CVP aims to provide more consistent returns with reduced volatility via a diversified portfolio of assets that includes Equities ( direct, managed unit trusts, listed investment companies (LIC’s) & Exchange Traded Funds (ETF’s)), Property, Fixed Income, Cash and Alternative investments.
In addition to the core investment in the CVP, we recommend a selection of investments which we term ‘Satellites’ to further compliment your portfolio. These investments can further diversify your portfolio, add growth asset exposure (and therefore increase potential returns), increase defensiveness, or allow for cash flow requirements. Stonehouse only selects carefully researched Satellite investments when developing the overall composition of the portfolio specifically tailored for your needs. Depending on the ongoing service agreement established with you these Satellite investments are generally reviewed (including profit taking where appropriate) at least annually. Clients all also able to add their own Satellite’s which often include direct equity portfolios and / or property where applicable.
Illustrative Investment Portfolios
NOTE: These Investment Portfolios are for illustrative purposes only. The amounts of funds that your Adviser will recommend to be held in the Core and Satellites (and the breakdown of such) will be determined after your situation has been fully assessed and elements such as your tolerance to risk and income / cash flow requirements are considered. Note any direct property holdings have not been factored into these models and may be considered as part of your recommended investment solution.
In early 2013 Stonehouse structured a formal Investment Committee as part of our client investment offering to provide new, innovative investment solutions tailored specifically for our clients, in order to:
- Create a specialised team specifically focused on making active ‘real-time’ investment decisions for client investment portfolios.
- Introduce high quality external expertise into the committee to make intelligent, well-rounded investment management decisions.
- Unify our Advisers to assist creating prudent investment portfolios for their valued clients.
- Strict Governance and Investment Mandate
The CVP adheres to strict governance requirements as outlined in this Governance Framework document. The Investment Committee meets regularly for assessment of investments, buying and selling of assets in the Portfolio and ongoing assessment of economic and market conditions. To learn more about the CVP please refer to the Factsheet and Product Disclosure Statement.
Investment Portfolio Performance
Note – this illustrates past performance over the specified investment term and returns are not guaranteed for the future.
CVP Monthly Updates
Our clients receive monthly updates of the CVP which includes a performance overview and an economic / market update. A library of all previous reports is available here.