Global EBI Moderate – AUD

Evidence Based Investing


Strategy Description

Our International Global Strategy is widely diversified investing in ETFs and market trackers, with the target to generate at least global capital market returns. Our strategy will always have a bias to value and high-quality stocks and to mid and small cap stocks.

The international portfolio does not take large bets in regional allocation compared to the MSCI All Country World Index. It does hedge part of the foreign currency exposure back to Australian dollar.

The fixed income part is diversified over Australian government bonds and corporate bonds and will adjust the average duration over the course of an economic cycle.

This strategy is suitable for long-term investors with a moderate risk profile that want to capture global market returns.

Fact Sheets

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Start a conversation

Whether you are looking for a second opinion, have more questions, or are ready to become a client, we’re here to help.