Making your investments count
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Tribeca's Investment Committee
Choosing the right investments for our clients is one of the most critical, and satisfying, parts of our job. But how do we keep up with the latest products and trends; and how do you know that the advice we give is considered from every possible angle?
The answer is our Investment Committee. We asked our Head of Advice Rob Devlin, to provide some insights into how the Committee works and why it’s become an integral part of Tribeca’s decision-making process. Here’s his thoughts.
How do you shape Tribeca’s investment advice?
Our role is to review all existing investments our clients hold to ensure they’re still suitable. We take into account what’s happening in the market and where we see the trends going, and adjust accordingly. For example, our regular assessments and meetings led us to transition away from some active managers to more index based investments, as research was showing that these index funds were offering greater returns and lower costs. Similarly, we constantly benchmark our portfolios against other super funds such as large industry funds and competitors to see where we stand, and to make sure our clients are receiving optimum cost and performance outcomes.
We also look at the broader Australian and international economy to guide our decisions. It’s about being aware of growth opportunities and constantly weighing up risk and reward.
It’s also about listening to our clients and adjusting our strategies to suit. In the last few years our advisors were noticing a large increase in inquiries for ethical investments. While we have always looked for these options, this type of investment had never been a priority given the need for them was relatively low and the products available were minimal. But in response to the strong increase in demand from our clients and the greater range of effective options now available, ethical investment portfolios have become an important element in our investment advice.
What did you learn from a global challenge such as Covid-19?
We learnt the importance of having a clear mind and collective insight to help make decisions in difficult times. Before Covid started having a real impact in March 2020, we met three weeks beforehand to consider our position. In our meeting we decided that the best course of action was to hold our position, as any changes we made would have been pure speculation. No one really knew what was going to happen. As it turned out that was the best thing to do for our clients as the market rebounded quickly and strongly.
The real strength of our Investment Committee is to be both empathic to our clients needs, but to also be pragmatic in assessing both the short and long-term impacts of market forces in investments.
Why is the Investment Committee important for clients?
Our value proposition is deeply based on relationships. And building long-term plans. That’s why you won’t see us chopping and changing strategies every three months, or having knee-jerk reactions to short-term events. By having an Investment Committee we are able to think through our planning methodically and collectively, ensuring we are always making the most considered and beneficial decision for our clients based on the information in front of us.
Even when we say not to change anything, that’s a very active decision with considerable thought behind it. Alternatively, when we think it’s time for a change such as our transition to index funds mentioned earlier, this is based on sound and calculated decision making. We think our clients can take great comfort in that.
If you would like more information on our Investment Committee or would like to discuss any aspect of your finances and investments, please speak to one of our team today.