Investment Research

Investment Philosophy

At Centrepoint Alliance, model portfolios are designed to give advisers portfolios that will meet investment objectives over a range of medium to long term timeframes.

These portfolios are designed across a range of risk profiles to be chosen for the client by the adviser. The Portfolio Construction is designed to optimise the chance of the portfolio in delivering the investment objectives from a risk adjusted return perspective. We also seek to minimise volatility and give strong downside protection during market crisis periods.

Centrepoint Alliance’s purpose is for more Australians to have a trusted relationship with a financial planner. We therefore build our portfolio models using a dedicated Research Team, together with robust processes, supported by a strong governance framework. When assessing and developing investment models we use the following components to ensure they meet our strict guidelines:

Focused on advice
We enable advisers to select the products and services that are in their clients’ best interest.

Sheltered
We don’t lose sight of the fact we want to generate good returns to help you stay the course and achieve your wealth goals.

Long Term
We select portfolios that have an ‘all weather’ approach to provide enhanced resilience no matter the state of the market.

Experienced
We select high quality fund managers who have a proven record, providing unique insights and adding more value than the broad market over the long term

Process

How do we select our investment managers?
The investment manager selection process guides the construction of our portfolios and allows us to act quickly in response to changes in research views. It is a critical part of our overall management process, and we have a rigorous governance process in place to ensure the right selections are made.

Once a manager and its investment offering have passed our initial screens, our investment and operational due diligence process begins. We compare managers against peers with a similar investment approach to ensure that we are selecting the highest quality managed funds in each sector or profile. By ‘highest quality’, we mean investment managers that have:

• A robust structure that incorporates high standards of risk management and corporate governance.
• Skilled investment teams that are appropriately resourced with appropriate continuity planning in place.
• A coherent, well-executed investment process that is sustainable and future oriented.
• Competitive management fees relative to peers.

How do we construct our portfolios?
Once a short list of funds has been identified, the Research Team develops the portfolio taking a long term approach. The result is a multi-manager portfolio that is reviewed to ensure that the combination of strategies provide diversification benefits. After they are made available to Centrepoint Alliance advisers, the portfolios are reviewed on a regular basis to ensure that the investments and the mix is still an optimal investment portfolio for the identified risk profile inline with our strategic asset allocation.