Portfolio management

Henderson Maxwell employs an award winning actively “managed account” providing better investment management for our clients through better transparency and direct asset ownership.

Henderson Maxwell’s 5-step process to selecting investment grade portfolios is designed to lower risk and increase returns. We believe that great care needs to be taken when selecting investment grade portfolios for our conservative clients to find the balance between better returns and lower fees.

Conservative investment assets recommended

We invest our client’s money into term deposits, fixed interest, property, Australian shares and a lower level of International shares. Given many of our clients are close to retirement or looking for good tax effective income, we do favour income producing Blue Chip assets such as term deposits and fully franked dividend Australian shares.
We employ an investment committee that meets monthly and full-time portfolio managers that can implement the mandate of the investment committee as market information is released.

Cheaper and more active portfolio management than other advisory firms

Given most financial advisers use cumbersome and expensive “wrap” accounts and “Master Trusts” that can not be actively managed, Henderson Maxwell provide a highly competitive and dynamic system with 24/7 access to your accounts in a secure environment. In fact, you or your super fund always remains the beneficial owner of the assets no matter what happens- this security difference is so important in times of uncertainty.

Our 5 step investment process

Step 1- Risk profiling and asset allocation

In your first meeting with a Henderson Maxwell Senior Financial Advisor we will request you complete a FinnaMetrica Risk Profile

Questionnaire which is designed to provide us with an insight into your attitude towards risk. 

We then undertake a further explanation on the white board in our offices to explain the differences between the various risk profiles and how that leads us to the "asset allocation decision". 

You then choose the appropriate risk profile to match your personality and we match that to your investment portfolio - simple! 

The asset allocation decision involves choosing asset classes such as Australian Shares, International Shares, Australian property, Fixed interest and Cash and how much of your funds we will allocate to each asset class. 

Once we know how to put in each asset class we then choose appropriate shares or funds to meet your long term (5-7 years plus) investment objectives.

Step 2 - Sector Research

We identify those sectors in the Australian share market that are undervalued and allocate an over weight position to those sectors and an underweight position to sectors that appear inflated or overpriced using fundamental analysis. Sector examples include banking and finance, resources and materials, consumer staples or health, just to name a few. We couple that research with global and national trends such as ageing population or growing superannuation balances and choose sectors with exposures to those long term trends.

Step 3 - Company Research

Using a number of different filters and research houses we identify investment grade companies that we feel will grow over time and provide a tax effective income to our clients, given that our target client is 50-65 years of age and is thus seeking lower volatility and solid income with the added bonus of imputation credits given most clients are investing within a superannuation fund. 

We seek companies that have both qualitative and quantitative attributes. Qualitative attributes include strong or leading market positions such as Woolworths*, monopolistic tendencies such as ASX* or economic stability such as Invocare* (funeral business) or just great management such as Harvey Norman*. 

*Note – these are examples and not be taken as recommendations. From a quantitative perspective, we seek companies that have high and consistently growing dividends, increasing share holder equity and low price to earnings ratios, to name a few examples.

Step 4 - Company and Fund Investment Grade Selection

Once the right companies have been identified, we want to buy them at the right price. So we employ a scale for each share and a price that we feel is reasonable for a long term investor to invest into those companies. When the price is right, we buy and when the price is too expensive we keep a watchful on the market until the price becomes more reasonable.

Step 5- constant and daily assessment of all assets in your portfolio

Henderson Maxwell has professional, highly qualified and dedicated portfolio managers managing your account daily. We can move in or out of a stock or fund across the client base in seconds allowing you to avoid unnecessary losses or take advantage of opportunities in the market as they appear. We DO NOT day trade or “churn” portfolios as we have to manage investor returns after fees so there has to be a reason to trade.

We also have a written Investment Charter that stipulates our preference for investments with high income, tax effectiveness, liquidity and companies listed on the share market must be in the ASX 200 meaning that they have to be of a certain size before we can own them. They must have solid return on assets and strong earnings per share and earnings per share growth.

For more information on how we invest our client’s funds, speak to an adviser on 1 300 665 439 or book an appointment now.