Agility and Harmony
The ability to adapt, be flexible and integrated is key. Investment recommendations are backed up via thoughtful research, strategy and analysis of all asset classes, both with a historical perspective as well as positioning for future events and changes to the economic landscape.
Being a non-institutionally aligned and privately owned advisory group, we pride ourselves on being able to use a combination of the latest findings from investment management literature along with leading intellectual property and technology to create tax efficient and well-diversified portfolios, which are aligned with your goals and risk appetite. Market dynamics have significantly changed over the past 10 – 15 years and traditional investment techniques are not going to be able to deliver the desired outcomes as they have historically.
We believe that a Core-Satellite methodology is the most agile and dynamic approach for the construction of investment portfolios. This approach enlists extensive financial modelling is combined with various investment vehicles to take advantage of both strategic (long term) and tactical (short term) market opportunities.
The Elixir Wealth Advisory Core-Satellite approach invests in index funds or Exchange Traded Funds (ETFs) as the Core investment(s). The Satellite investments complements the Core with a number of smaller investment portfolios across alternative asset classes or active investment strategies. See graph below.
Index funds represent a passive investment style combined with broader market opportunities and can help clients to achieve market returns without incurring excessive fees. Many traditional advisors aim at beating the market by picking and choosing individual stocks or managed funds (also known as active investments). However, numerous research in Australia and overseas has consistently shown that these advisors are in fact highly likely to underperform the market in the long run (10 – 20 year timeframe). By basing our core investment around a combination of various major index funds, our clients are better positioned to enjoy market opportunities as they arise.
The satellite section of our investment portfolio takes us to the next level and helps our clients to potentially earn returns beyond and top of the market returns. The satellite investment is designed to exploit opportunities which are not generally available in an index fund. Depending on the risk profile and investment horizon of our clients, these satellite investment can range from property, commodities, sector, industry, style, size, and momentum funds to specific rule based active investment strategies.
The Core-Satellite approach brings discipline and stability to an investment portfolio by reducing reliance on chasing fund managers and provides greater diversification while reducing costs. The portfolio (created within the most tax efficient environment for you), matches the market while allowing the carefully selected satellite investments to enhance the overall return.