Deciding which risks are worth owning
Your financial strategy comes first. Investment implementation is a separate decision, with more than one way to put the philosophy into practice.
Asset allocation is the portfolio expression of your goals, time horizon, capacity for loss and need for flexibility. It is a disciplined process for deciding which risks to own — not a promise to remove volatility or predict every market movement.
Two ways to put the investment philosophy into practice
Financial advice and portfolio management are related, but they are not the same decision. You can work with Life First Advice on your strategy without being required to use our in-house portfolio.
Where investment implementation forms part of the advice, we can help you decide which approach better fits your goals, preferences, time horizon and desired level of involvement.
Index portfolio
A simple, diversified and low-cost portfolio aligned with the agreed level of risk. It is designed to capture the returns of its selected markets rather than attempt to outperform them through frequent investment decisions.
It may suit people who value transparency, liquidity, broad diversification and a straightforward investment process.
Life First Advice Asset Core-Satellite
A broadly diversified strategic core is combined with deliberate satellite positions. Those positions are informed by long-term economic and market-cycle research and are subject to ongoing monitoring and review.
It may suit people who value active asset-allocation decisions, a clearly documented investment process and ongoing accountability for those decisions.
The portfolio serves the plan
Whichever approach is used, the portfolio should reflect:
- What the money is intended to achieve
- When it is likely to be needed
- Your capacity, willingness and need to take investment risk
- The importance of diversification, liquidity and cost
- The reality that volatility is a normal part of long-term investing
- A disciplined process for monitoring and review
A risk-profile questionnaire is an input, not an instruction. Advice also considers your emotional comfort, financial capacity, required return and the time before you need to access the money.
Neither approach removes market risk. The objective is not certainty or perfect market prediction. It is a clear, documented investment process that serves the broader financial plan.
A considered choice, not a default portfolioDiscuss your investment approach
Tell us what you would like your money to achieve. A conversation can help you explore the right implementation, if any, for your broader plan.
Start a conversationGeneral information only. This page does not consider your personal objectives, financial situation or needs. Seek personal advice before acting. Depending on the recommended structure, the Core-Satellite portfolio may be implemented through HUB24, with an equivalent philosophy applied where a Generation Life investment bond is appropriate.