Portfolio Management
We design multi-asset and direct equity portfolios to reflect your investment philosophy, approach, and current investments.
Our portfolios use a core-satellite approach and our team has outperformed key benchmarks, in a range of market conditions.
Strategic asset allocation
We offer five portfolio profiles:
- Conservative
- Moderate
- Balanced
- Growth
- High Growth
Dynamic asset allocation
Our active DAA overlay is designed to improve risk adjusted returns by responding to economic and market conditions.
Direct equities
Our Direct Australian equity portfolio is designed to outperform the ASX 200 with lower risk, utilising a Quality Growth at a Reasonable Price (QGARP) approach.
Tailored portfolios
We tailor portfolios to suit you and your clients for ease of implementation, in-specie transfers and consistent messaging across your entire client base.
We provide advisers with reports and client communications, advice text and Xplan file uploads for modeling via our downloads centre.
Managed accounts
We can make your portfolios available as managed accounts on your preferred investment platforms.
Our team members have had experience implementing portfolios as separately managed accounts since 2014. Managed accounts offer a number of benefits for the investor, adviser and advice business too:
Automatic updates
Investors are kept aligned with their investment strategy without manual work or RoA. Advisers can continue to communicate the activity to their clients.
Rapid implementation
Managed accounts enable rapid implementation to take advantage of opportunities and avoid risks.
Transparency and portability
Investors can transfer holdings in and out without tax consequences. And they retain full visibility of their investments.
Portfolio customisation
You can substitute, exclude or retain particular investments, whilst the SMA automatically manages your clients portfolios.
Following an investment strategy with discipline increases returns and reduces risk. Managed accounts adhere more closely to an investment strategy than is possible for an Adviser manually, leading to better results for investors.
Macquarie Wrap Separately Managed Accounts
Aequitas separately managed account portfolios are available on Macquarie Wrap.
Aequitas Balanced
- Name: Aequitas Balanced SMA portfolio
- Macquarie Wrap Code: SMAAEQ01S
- Style: Diversified Multi-Asset, Core-Satellite
- Indicative number of holdings: 25 to 50
- Suggested minimum investment timeframe: 5+ years
- Investment return objective: Deliver a total return above CPI+3%, with market comparable levels of portfolio volatility over the long term.
- Who should invest: The Aequitas Balanced Model Portfolio is suitable for investors seeking long term growth and income.
- Description: The Aequitas Balanced Model Portfolio combines holdings of equities exchanged traded funds and unlisted managed funds to provide exposure to growth asset classes such as Australian and global equities and property and more defensive asset classes such as alternative assets, fixed interest securities and cash. As investment markets change this SMA Model Portfolio is actively managed to reduce risk and seek out opportunities.
- Indicative asset allocation: 58% growth SAA (DAA +/-15%)
Australian equities: 22% SAA
International equities: 28% SAA
Property: 8% SAA
Alternative assets: 10% SAA
Fixed interest: 27% SAA
Cash: 5% SAA - Benchmark: CPI+3%
- Risk level: Medium to High
- Standard Risk Measure: 5
- Minimum Portfolio Size: $100,000
Aequitas Growth
- Name: Aequitas Growth SMA Portfolio
- Macquarie Wrap Code: SMAAEQ03S
- Style: Diversified Multi-Asset, Core-Satellite
- Indicative number of holdings: 25 to 50
- Suggested minimum investment timeframe: 6 years
- Investment return objective: Deliver a total return above CPI+4%,
with market comparable levels of portfolio volatility over the long
term. - Who should invest: The Aequitas Growth Portfolio is suitable for
investors who require a portfolio that reduces risk while offering long
term growth with some income. - Description: The Aequitas Growth portfolio combines holdings of
equities, exchanged traded funds and managed funds. These
provide exposure to growth asset classes with some defensive assets and deliver a portfolio that reduces risk while offering long term growth with some income. Core holdings in each asset class (~50%) are typically low cost passive index exposures. These are combined with satellite positions in attractive market segments often through active managers. As investment markets change this portfolio is actively managed to reduce risk and seek out opportunities within strict +/-15% DAA limits. - Indicative asset allocation: 78% growth SAA (DAA +/-15%)
Australian equities: 30% SAA
International equities: 37% SAA
Property: 11% SAA
Alternative assets: 10% SAA
Fixed interest: 10% SAA
Cash: 2% SAA - Benchmark: CPI+4%
- Risk level: Medium to High
- Standard Risk Measure: 5
- Minimum Portfolio Size: $100,000
Aequitas High Growth
- Name: Aequitas High Growth SMA Portfolio
- Macquarie Wrap Code: SMAAEQ04S
Style: Diversified Multi-Asset, Core-Satellite - Indicative number of holdings: 25 to 50
- Suggested minimum investment timeframe: 8+ years
- Investment return objective: Deliver a total return above CPI+5%,
with market comparable levels of portfolio volatility over the long
term. - Who should invest: The Aequitas Growth Portfolio is suitable for
investors who require a portfolio that offers long term growth. - Description: The Aequitas High Growth portfolio combines holdings of equities, exchanged traded funds and unlisted managed funds. These provide exposure to predominantly growth
asset classes with a small exposure to defensive assets and deliver a portfolio that offers long term growth.
As investment markets change the investment team adapts the portfolio to reduce volatility and seek out opportunities. This produces a better balance of reward to risk over the long term. - Core holdings in each asset class
are typically low cost passive exposures. These are combined with satellite positions in attractive market segments. As investment markets change this portfolio is actively managed to reduce risk and seek out opportunities. - Indicative asset allocation: 88% growth SAA (DAA +/-15%)
Australian equities: 34% SAA
International equities: 42% SAA
Property: 13% SAA
Alternative assets: 10% SAA
Fixed interest: 0% SAA
Cash: 2% SAA - Benchmark: CPI+5%
- Risk level: High
- Standard Risk Measure: 6
- Minimum Portfolio Size: $100,000
Aequitas Moderate
- Name: Aequitas ModerateSMA Portfolio
- Macquarie Wrap Code: SMAAEQ05S
Style: Diversified Multi-Asset, Core-Satellite - Indicative number of holdings: 15 to 30
- Suggested minimum investment timeframe: 4+ years
- Investment return objective: Deliver a total return above CPI+2%,
with market comparable levels of portfolio volatility over the long
term. - Who should invest: The Aequitas Moderate Portfolio is suitable for investors who require a portfolio that
offers modest long-term growth and regular income. - Description: The Aequitas Moderate portfolio combines holdings of exchanged traded funds and unlisted managed funds. These provide exposure to some growth asset classes and a mix of defensive assets to deliver a portfolio that offers modest long-term growth and regular income.
As investment markets change the investment team adapts the portfolio to reduce volatility and seek out opportunities. This produces a better balance of reward to risk over the long term. - Indicative asset allocation: 38% growth SAA (DAA +/-15%)
Australian equities: 15% SAA
International equities: 18% SAA
Property: 5% SAA
Alternative assets: 10% SAA
Fixed interest: 44% SAA
Cash: 8% SAA - Benchmark: CPI+2%
- Risk level: Medium to High
- Standard Risk Measure: 5
- Minimum Portfolio Size: $100,000
Aequitas Core Equity
- Code: SMAAEQ02S
- Style: Quality Growth at a Reasonable Price
- Indicative number of holdings: 15 to 30
- Suggested minimum investment timeframe: 5+ years
- Investment return objective: Outperform the S&P/ASX 200 Accumulation Index net of fees on a rolling five-year basis, while generally employing a lower level of equity market risk.
- Who should invest: The Core Equity Portfolio is suitable for investors seeking Australian equity exposure as part of their broader asset allocation who want long term growth with risk management prioritised ahead of returns.
- Description: The Aequitas Core Equity Model Portfolio is an actively managed diversified portfolio that invests in Australian listed shares.
This SMA Model Portfolio focuses on quality companies that are in attractive industries with good growth prospects but whose shares are reasonably priced.
The portfolio controls risk by diversifying investments across different segments of the Australian equity market and adjusting the total exposure to macroeconomic themes to achieve a better balance of reward to risk over the long term. - Indicative asset allocation:
Australian equities: 95% to 99%
Cash: 1% to 5% - Benchmark: S&P/ASX 200 Accumulation Index
- Risk level: High
- Standard Risk Measure: 6
- Minimum Portfolio Size: $50,000
FirstWrap Separately Managed Accounts
Aequitas separately managed account portfolios are available on FirstWrap, under "Other related disclosure documents".
Aequitas Balanced Portfolio
- Code: CFSAEQB
- Style: Diversified Multi-Asset, Core-Satellite
- Indicative number of holdings: 15 to 60
- Suggested minimum investment timeframe: 4+ years
- Investment return objective: To deliver returns of CPI + 3% over a full market cycle, and outperform the average of peer funds in the Morningstar Australian Multi-sector Balanced category.
- Who should invest: Investors seeking a portfolio that reduces risk while offering long-term growth and income.
- Description: The Aequitas Balanced Portfolio combines holdings of equities, exchanged traded funds and managed funds. These provide exposure to all major asset classes and deliver a portfolio that reduces risk while offering long term growth and income. As investment markets change the investment team adapts the portfolio to reduce volatility and seek out opportunities. This produces a better balance of reward to risk over the long term.
- Indicative asset allocation: 58% growth SAA (DAA +/-15%)
Australian shares: 22% SAA
Global shares: 27% SAA
Property: 8% SAA
Alternatives: 10% SAA
Fixed interest: 27% SAA
Cash: 5% SAA - Benchmark: CPI+3%
- Risk level: Medium to High
- Standard Risk Measure: 5
- Managed account fee: 0.287% p.a.
- Minimum Portfolio Size: $100,000
Aequitas Growth Portfolio
- Name: Aequitas Growth Portfolio
- Code: CFSAEQG
Style: Diversified Multi-Asset, Core-Satellite - Indicative number of holdings: 15 to 60
- Suggested minimum investment timeframe: 5 years
- Investment return objective: To deliver returns of CPI + 4% over a full market cycle, and outperform the average of peer funds in the Morningstar Australian Multi-sector Growth category.
- Who should invest: The Aequitas Growth Portfolio is suitable for investors who require a portfolio that reduces risk while offering long term growth with some income.
- Description: The Aequitas Growth Portfolio combines holdings of equities, exchanged traded funds and managed funds. These provide exposure to growth asset classes with some defensive assets and deliver a portfolio that reduces risk while offering long term growth with some income. As investment markets change the investment team adapts the portfolio to reduce volatility and seek out opportunities. This produces a better balance of reward to risk over the long term.
- Indicative asset allocation: 78% SAA (DAA +/-15%)
Australian shares: 29% SAA
Global shares: 37% SAA
Property: 11% SAA
Alternatives: 10% SAA
Fixed interest: 10% SAA
Cash: 2% SAA - Benchmark: CPI+4%
- Risk level: High
- Standard Risk Measure: 6
- Managed account fee: 0.287% p.a.
- Minimum Portfolio Size: $100,000
Aequitas Moderately Conservative Portfolio
- Code: CFSAEQMC
- Style: Diversified Multi-Asset, Core-Satellite
- Indicative number of holdings: 15 to 60
- Suggested minimum investment timeframe: 3+ years
- Investment return objective: To deliver returns of CPI + 2% over a full market cycle and outperform the average of peer funds in the Morningstar Australian Multi-sector Moderate category.
- Who should invest: Investors seeking a portfolio that offers modest long-term growth and regular income.
- Description: The Aequitas Moderately Conservative Portfolio combines holdings of equities, exchanged traded funds and managed funds. These provide access to some growth asset classes with a mix of defensive exposures and deliver a portfolio that offers modest long term growth and regular income. As investment markets change the investment team adapts the portfolio to reduce volatility and seek out opportunities. This produces a better balance of reward to risk over the long term.
- Indicative asset allocation: 38% growth SAA (DAA +/-15%)
Australian shares: 15% SAA
Global shares: 18% SAA
Property: 5% SAA
Alternatives: 10% SAA
Fixed interest: 44% SAA
Cash: 8% SAA - Benchmark: CPI+2%
- Risk level: Medium
- Standard Risk Measure: 4
- Managed account fee: 0.287% p.a.
- Minimum Portfolio Size: $100,000
Aequitas Core Equity Portfolio
- Code: CFSAEQC
- Style: Quality Growth at a Reasonable Price
- Indicative number of holdings: 15 to 30
- Suggested minimum investment timeframe: 5+ years
- Investment return objective: To outperform the benchmark net of fees over rolling five year periods, while generally employing a lower level of equity market risk.
- Who should invest: Investors seeking Australian equity exposure as part of their broader asset allocation who want to achieve long-term growth.
- Description: The Aequitas Core Equity Portfolio invests in Australian listed equities (ASX200). The investment team focusses on quality companies that are in attractive industries with good growth prospects but whose shares are reasonably priced. The portfolio controls risk by diversifying these investments across different segments of the Australian equity market and adjusting the total exposure to macroeconomic themes. This gives a better balance of reward to risk over the long term.
- Indicative asset allocation:
Australian equities: 95% to 99%
Cash: 1% to 5% - Benchmark: S&P/ASX 200 Accumulation Index
- Risk level: High
- Standard Risk Measure: 6
- Managed account fee: 0.492% p.a.
- Minimum Portfolio Size: $25,000
Our Investment Approach
Macro risk, factor risk, and asset-class risk premia can be timed to improve risk adjusted returns.
We search for mispricing using the filters below:
1. Parse the market narrative
You need a variance to market to find the gold.
Top down
Macroeconomic
The macroeconomic filter searches for disagreement across asset classes, geographic regions, and sectors (broad, all-encompassing themes).
It is a search for “big picture” thematics that lend themselves to analysis through economic theory. They usually involve a difference of opinion about how the world works.
Bottom-up
Idiosyncratic
The idiosyncratic filter looks for smaller, more granular, ideas or themes.
For example: Elon Musk, genius or maverick? Will Tesla's first mover advantage lead to domination of the transportation industry, or will competitors close the gap in technology?
Quantitative
Factor & risk premia
We assess the returns that investors can anticipate from different investment types, and measure the exposure of investments to recognised investment factor premia (quality, value, momentum, and growth factors) & risk premia (term, inflation, liquidity, credit, equity, property and alternative risk premia).
2. Regimes and the constellation of asset prices
The filters give us a list of candidate investment ideas or themes. But it’s rare for all the signals from these filters to be consistent. If they were, investing would be simple.
So the second part of our process is a nod toward the efficient market hypothesis. We compare our interpretation to the response of the market.
Regimes and asset prices
Factor trade-offs
The objective here is to try to align or note discrepancies between fundamentals and market pricing.
Let’s see what Mr Market (the asset prices) thinks about how we are viewing these investments (the fundamentals) and search for disagreement.
Regimes and asset prices
Macro market movements
We want to know what effects shifts in interest rates, currencies, commodity prices and markets overall will have on asset prices.
We use the co-movement in asset prices to gauge the market narrative in response to shocks.
Regimes and asset prices
Regime change
Regimes guide us on the longer run behaviour of asset prices. They differentiate between “business as usual” and “this time is different” and tell us how much of a shift in markets we should anticipate.
3. Search for instability
We believe that stability begets leverage which begets instability. When economic conditions are benign the increased use of leverage, and lending to more marginal borrowers, appears no less safe than loans and investment decisions undertaken at earlier stages of the cycle.
As such, a deep dive is also required into the company, market or region under consideration. This involves an examination of granular economic, financial and company data. It also requires an understanding of the institutions, political, legal and market structures that drive each region.
This process is quite involved, not the least of which is evaluating the management teams of companies.
Instability
Economic
We review the economic environment across markets, looking for unsustainable booms in credit (at the household and corporate level), unsustainable booms in investment, unsustainable economic conditions or unsustainable booms in asset prices (particularly dwellings and real effective exchange rates, which can indicate a loss of competitiveness or a tendency to a balance of payments crisis).
This influences our growth versus defensive allocations, and stock and sector exposures.
Instability
Idiosyncratic
We perform a deep dive on company and sector fundamentals, looking at debt levels and the sustainability of earnings.
A long history of the underlying financials is required to assess a company, the industry it operates within, and the track record and execution of management over time.
We consider the nature of returns, the strength of the balance sheet, the quality of earnings, the type of free cashflow and the sources of earnings growth.