Our investment philosophy in the Australian Financial Review

Why our investment philosophy stands up in times like these


Arch Capital Update – Friday 21st August 2020

Our Investment Philosophy in the Australian Financial Review

Recently the Australian Financial Review (AFR) has been writing articles highlighting how certain fund managers have stood out during this last 6 months. The AFR points out how these fund managers have particularly demonstrated processes that really work, have been investing ethically and also displayed great stewardship. These fund managers have tended to fly under the radar in the past as they do not advertise a lot and do not incentivise advisers with commission. One such fund manager these articles refer to is Dimensional.

Dimensional have never paid a cent of commission and are starting to gain a lot more media recognition not only globally, but also here in Australia. Recent amendments to laws surrounding financial advice has meant that every Financial Adviser in the country now has to act in their client’s interest. At Arch Capital, we have always acted first and foremost for our client’s interests and use funds such as Dimensional who reflect this philosophy and aren’t on the front page of the paper all the time.

It is positive to see journalists are giving recognition to these fund managers, particularly in the Australian Financial Review, and also helps validate our approach at Arch Capital.

 A lot of questions at the moment surround what’s going to happen in the market and if things are going to change. Despite a lot of negative press markets have been quite buoyant, which reflects the pricing in of perhaps a vaccine is on the way and perhaps economies around the world are beginning to recover. Ultimately, we never know and we stick to our fundamentals by keeping diversified and ensuring the asset allocation is right.

As always, if you have any questions please do not hesitate to reach out. We are here to talk.

Related Articles

How to ensure investment success

You have to have a process and hold principles to keep you on track. In this blog we will cover a few of the steps required to develop your strategy for successful investing.1. Assess your goals and circumstances The first thing you need to do is to assess your goals...

How much value can an adviser add?

As we enter a year of more uncertainty, many investors and retirees who are self-directed may be assessing whether they need help navigating. The problem is - who to trust and, how do I quantify if I'm getting value? The only unbiased part about our business is that...

Why are we wired to make bad investments?

“The market is full of people who think they can beat the market, and full of people who believe them. This is one if the greatest mysteries of finance. Why do people believe they can do the impossible? Why do other people believe them?” – Daniel Kahneman As humans,...