Our role as advisers is to assist clients through this process, which is always specific and appropriate to their individual position – whether a family, a significant wealth owner or not-for-profit organisation. The setting of asset allocation is a core element of wealth strategy, and flows from a clear, well considered and detailed framework of objectives, factor considerations and inputs. Most importantly, it must be evaluated against risk settings at every stage.

Constructing a strategy that seeks to achieve specific future wealth outcomes but limits the variability in those outcomes can be a delicate balance to strike. When clients are asked how much risk they are willing to tolerate, many would respond that they do not want to take risk for risk’s sake but are prepared to accept some risk to achieve their goals. The challenge is defining what can be a rather intangible factor – until you experience the variability and potential loss, you may underestimate your aversion to it.

To assist both our clients and advisers in this risk evaluation process, we recognised the need for a dynamic tool – one that could model, visualise, and adjust risk strategies in real time, together with key factor input variables. After many years of exploring the software offerings available globally, we failed to find a suitable solution that provided the level of precision and adaptability needed. So, as is the Cameron Harrison way, we commissioned the build of our own proprietary tool – the Wealth Pilot™.

Wealth modelling needs to be systemised, reliable and visual to clearly demonstrate the impact of different risk strategies and model outcomes in real-time. To achieve this, we partnered with a specialist New York-based developer, who has previously collaborated with the World Health Organisation on dynamic modelling. Working together for more than a year, we created the Cameron Harrison Wealth Pilot™. This collaboration ensured the Wealth Pilot™ would be both dynamic and highly functional, providing the practical insights tailored to our clients' needs.

So, what does a truly dynamic and tailored risk strategy look like in action? Here's a glimpse into our Wealth Pilot™ – designed to bring clarity to complexity:

With the Wealth Pilot™, we can focus on the core principles of wealth management. We start with what we know – your current position, tax rate, future capital events and investment time horizon. Next, we simulate your spending (withdrawal) patterns, adjusted through your life stages and market fluctuations to keep you on track. Similarly, risk allocation should be dynamic and taking too little risk can be just as detrimental as taking too much – the Wealth Pilot™ presents several different risk strategies to assist in achieving ‘the right balance’ of objectives to align with your risk tolerance.

We are thrilled to introduce the Wealth Pilot™ to our clients and professional partners. In next month’s edition of our Perspectives, we will take a deep dive into its mechanics, showcasing how it helps optimise risk, strategy and long-term decision making.

Cameron Harrison have been advising business owners and their families on asset allocation and intergenerational wealth management for over 50 years. We have demonstrated over a long period our ability to manage investments through both the good times and bad by keeping the client at the centre of our business.  

For more information on our approach to wealth management or any other inquiries, please contact us on +61 3 9655 5000 or contact our experts here.