Investment Advice

For existing investors, investment advice refers to the X-Ray Review (second opinion) of your current portfolio to understand whether it aligns with your long-term financial goals. For new investors, investment advice refers to the setting up of a long-term, low cost and highly diversified investment portfolio aligned with your own objectives. A regulated financial planner can use cash flow modelling and evidence-based methodologies to convert your life into numbers and give you clarity, confidence and control over your ideal future.

While DIY investing may seem like the cheaper option, the evidence tells us that the value of using a financial planner far outweighs any cost.

Evidence-based investing is grounded in the substantial body of academically proven evidence that market-timing and security selection in relatively efficient markets are not expected to benefit investors after costs.

Evidence-based advisers believe investors are best served with efficient, low-cost portfolios that:

(1) reflect their personal financial goals;

(2) expose them to globally diversified sources of persistent market returns (such as asset class and/or factor exposure); and

(3) help them manage their damaging behavioral biases.

Typically science and education are favored over the traditional route of 'speculation'.

We believe DFA funds will improve your investment results for the following reasons:

1. Simple indexing. We eliminate manager risk, and the human emotional need to think they can “beat the market”. We also eliminate the cost associated with their compensation, which as many of you know, is never a small number. The benefit to you? Less risk, and significantly lower cost.
   
   
2. Simple diversification. We expand the number of asset classes in your portfolio to further reduce risk. Our basic portfolios employ a 4-step process to maximise your earnings potential.
   
   
3. Smart indexing. Some insider language: we go a step beyond market cap based indexes, by taking advantage of the higher returns associated with small cap and value priced equities – per the Fama/French research. In short, a smarter approach to indexing.
   
   
4. Smart allocation. Our approach lets us determine the highest return for the least amount of risk in any asset class. For you geeks, we go a step beyond “naïve” diversification using a technique called “mean variance optimisation.” The results, in plain English, are risk-calibrated portfolios.

We employ a “buy and hold” strategy because we believe that over time, no one can time the market.

We adhere to a few simple principles:

• Markets are efficient and for investment purposes assets are fairly priced.
• Diversification reduces the risk of uncertainty and asset allocation across asset classes determines your results.

The focus for the investor should always be how much can you, the investor, risk losing, and how long are you willing to stay invested in the market.

Yes.  We believe everyone should have a financial plan whatever their stage in life because it makes financial decisions so much easier.

You should always having a financial plan in place before making any form of investment decision. 

Once your plan is in place, we're committed to helping review it and keep it on track - safeguarding your finances as life moves on.

Being independent from an investment perspective means we give investment advice but we don't manage money. 

This is in contrast to private banks, discretionary fund managers and brokers who are paid to offer you their own in-house solution. 

Because we don't have any conflict of interest when we recommend where you invest - you have far greater peace of mind to know our recommended solutions are in your best interest. 

AES is a strong advocate of charging fees for investment advice, financial planning and consultancy services. We believe that the commission system, where the level of remuneration is reliant on the sale of a product, creates a potential conflict of interest between the adviser and the client. With a fee-based approach we have no financial incentive other than working in the best interests of our clients.

Yes. The investment advice you received a few years ago may not be the best plan of action for you now. Getting a second opinion on your investment portfolio is vital. It can help you align your investment plan to your ideal future. Get your second opinion review today and ensure you get and keep the life you want.