Your investment strategy

Our investment philosophy

Your investment strategy should be as unique as your goals, and that's exactly how we approach it.

Three core pillars

At Altitude Wealth Management, our investment philosophy centres on three fundamental beliefs

Pillar 1

Preserve capital

We prioritise consistency of performance and preservation of capital, particularly for pre-retirees and retirees who rely on steady income and capital protection. Rather than relying on historic volatility and correlation, our approach looks ahead.

Our Investment Philosophy assesses likely future market conditions, informed by historical performance, and applies Dynamic Asset Allocation (DAA) to better preserve capital.

Pillar 2

Manage risk and volatility

Risk management is central to achieving a portfolio's objectives.

To minimise the impact of market fluctuations and permanent loss of capital over time, treat risk as just as important as return.

Pillar 3

Seek a reasonable return

Aim for consistent, positive returns over the medium term (three to five years). We do this by focusing on capital preservation, risk and volatility and diversify appropriately across asset classes.

We assess performance on a post-tax, post-fee basis, measuring returns against post-fee index performance or cash. And we believe illiquid investments should compensate investors for that lack of liquidity.

The difference

We apply key investment principles

Proprietary research is more reliable than industry research
Asset allocation drives portfolio returns
Risk and return are related
Use only as much risk as necessary
Valuation is key
Effective diversification reduces volatility of returns
Investment manager selection impacts performance
When selecting managers, we take a number of factors into account
Effective implementation adds value

Financial advice process

Investment process

We implement our investment philosophy and principles throughout the financial advice process.

Strategic allocation

A long-term asset allocation framework for each risk strategy based on expected returns and volatility.

Fund research

An extensive and thorough research process, with quantitative and qualitative filters applied.

Risk management

Risk tools include style research and fixed income risk analysis.

Tactical allocation

A long-term asset allocation framework for each risk strategy based on expected returns and volatility.

Portfolio construction

Portfolios are constructed after carefully considering potential risks and rewards.

Portfolio implementation

Portfolios are invested according to strict rules to reduce execution risk and achieve consistent outcomes.

Actively managed

Altitude managed portfolios

We offer our clients a suite of actively managed, diversified portfolios across a range of risk and return profiles. These portfolios span growth assets (Australian equities, property, global securities) and income assets (cash, fixed interest).

Allocations are managed by expert fund managers, hand-picked by our Investment Committee, who meet regularly to review market conditions, manager performance and portfolio outlook. Each portfolio is free of conflicts of interest and matched to a client's objectives, investment horizon and risk tolerance. Portfolios are implemented through a Separately Managed Account (SMA) structure.

Partnership

Quilla Consulting

Our customised portfolios are built through a partnership with Quilla Consulting, a leading Australian investment manager. This partnership gives us the scale and expertise to deliver efficient, client-centric portfolio management, and stronger investment outcomes for our clients.

Investment vehicle

Separately Managed Accounts (SMAs)

SMAs are popular investment vehicles, once accessible only to institutional and wealthy investors. Today, thanks largely to technology, investors with even modest-sized accounts can access them.

Empower

SMAs enable us to:

Execute our Investment Principles efficiently, increasing the likelihood of better outcomes.
Access Quilla's discounted wholesale pricing on leading investment strategies, passed directly to our clients.
Access timely market updates and fund manager research, enabling optimal portfolio positioning.
Implement investment decisions faster, reducing risk and capturing opportunities promptly.
Cut back-office administration, freeing our advisers to focus on clients and their needs.

Key benefits

SMAs offer investors:

Cost efficient: lower management, custody and execution costs.
No hidden costs: unlike commingled investors in a managed fund.
Tax efficient: no embedded capital gains, and the ability to tax loss harvest on individual securities.
Transparent: 24-hour portal access with full visibility over individual securities.
Flexible: holdings can be transferred in-specie to another account or provider if needed.

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Whether you're looking for greater clarity, a clearer direction or confidence in your financial future, we're here to help.

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