Economically Responsible leads to Outperformance

investment strategy

Like a dedicated marathon runner, having a long-term focus is important in managing down-side risk

By

Paul Ashworth, Managing Partner
David Clark, Director – Investment Management
Antony James, Analyst


Posted 26 July 19

Astuteness means we're masters of the downside risk.

SuperRatings recently released its annual list of the top ten performing public offer superannuation funds. We are pleased to report that the comparable performance for Cameron Harrison’s Core Economically Responsible Strategy (Accum) would have ranked second over 1-year and third over 5-year time periods.

Performance of Cameron Harrison’s Core Economically Responsible Strategy (Accum)

Diagram showing Performance of Cameron Harrison’s Core Economically Responsible Strategy (Accum)

Further to this, all our multi-asset strategies outperformed their benchmarks over these periods.  This reflects our long-term focus, rather than a short-term gaze.

Asset Allocation Performance - 5 Years (pa)

Diagram showing Asset Allocation Performance - 5 Years (pa)

The strong performance reaffirms Cameron Harrison’s approach and philosophy to multi-asset asset strategy over the last 25 years and the delivery of steady income and growth over clients' wealth journeys. The key elements are:

  • to focus on quality investments at reasonable valuations invested over the long-term;
  • operating to our balance of risk analysis of economic, financial market and socio-political factors; 
  • long term growth in income is fundamental to returns (and ultimately retirement funding); and
  • the fundamental belief in the benefit of consistent, stable returns which cumulatively build portfolio wealth over time. 

Looking ahead, we expect to see a continued decline into the ‘lower for longer’ paradigm that has dominated most of the developed world in recent years. The likely outcome is tepid economic & wage growth and the continuation of ‘economic sludge’ that has built-up due to rising household indebtedness. Under these conditions, a balanced and cautious approach to risk is warranted, which sees our Core Economically Responsible Asset Allocation Strategy weighted towards the lower end of our risk parameters. Based on clients differing risk parameters, Cameron Harrison operates a full spectrum of risk solutions, which is shown below.

Asset Allocation Risk Profiles

Diagram showing Asset Allocation Risk Profiles

Cameron Harrison’s investment approach is built upon two key tenants – flexibility and transparency – that are supported by a Managed Discretionary Account (MDA) structure, which sees each client have their own distinct account rather than pooled investments. This structure ensures that our clients' maintain beneficial ownership of the investments (transparency) and can operate a bespoke asset allocation including legacy assets (flexibility) within their investment portfolio. 

For more information on the complete suite of asset allocation solutions provided by Cameron Harrison please feel free to contact us.