Investment Approach

We rely on proven investment fundamentals which endure through the full range of long term economic cycles. We believe in diversification across a range of investments and asset classes.

As we hold our own Australian Financial Services Licence, we are able to independently select investments we feel are the most appropriate for our clients. We represent our clients when making decisions in this regard, and are not beholden to directives from any bank or funds management company.

The Donegal Wealth Investment Committee meets regularly to review and discuss the economic outlook, asset allocations and investment selections, making adjustments to the Dynamic Asset Allocation model as risks and opportunities are identified.

Donegal Wealth can proudly say that we did not recommend any investment that 'failed' during the Global Financial Crisis. Our clients had no exposure to Astarra, Westpoint, Elm, Fincorp, ACR, Timbercorp, Great Southern or any of the myriad of failed schemes that occurred during the GFC.

HOW IS OUR APPROACH TO INVESTMENT DIFFERENT?


The Donegal Wealth approach to asset allocation is compatible with how you think as an investor.

Portfolios are constructed to meet your individual investment objectives. The first step in portfolio design is to work out what you want and what you need to achieve.

Return forecasts are forward-looking. Our asset allocation models are based on long-term, forward-looking forecasts. Dynamic Asset Allocation. We are comfortable making significant moves in the asset allocation of an investment portfolio when long term forecasts dictate. This is at the core of our Dynamic Asset Allocation approach.

Risk is the chance of not meeting your objectives - poor long-term returns are the major risk facing investors. Excessive volatility is a secondary, important risk.

Transaction costs and taxes matter - taxes and costs can consume half or more of total investment returns, so decisions to change asset allocations should take them into account, carefully weighing up the benefits.