Sentinel Investment philosophy
Sentinel has developed an investment philosophy which it believes to be both effective for clients, as well as scalable and sustainable for financial advisers.
Where possible, we encourage advisers to adopt this investment philosophy as their own:
Sentinel Investment Philosophy
Sentinel believes that active investment management adds significant value by enhancing returns and reducing risk.
However active management comes in many forms and our view is that only some of these are effective.
Sentinel's investment philosophy therefore centres around the use of a small number of carefully chosen strategies and investments which we believe provide investors with the best prospect of success.
Investment Strategies (Levers)
Investment Management is the process of choosing where, and how much, to invest from a vast array of investment alternatives. Sentinel focuses attention on three key strategic decisions or ‘levers’ that can be actively adjusted to drive sustainable long term performance:
- Asset Allocation
Asset allocation is the process of apportioning investable funds to the broad investment areas of Australian Shares, International Shares, Property & Infrastructure, Fixed Interest, Cash and Alternatives. Determining how much to invest in each asset class, and adjusting this weighting according to changing economic conditions, is a key lever of Sentinel’s active management.
- Core Selection
Core investments are designed to provide broad exposure to the risk/reward payoff delivered by each asset class. Selecting the most appropriate core investment, while adjusting as conditions and circumstances change, contributes strongly to long term portfolio performance. Core investments general comprise at least 50% of the overall portfolio.
- Satellite Selection
Satellite investments are targeted specific areas of investment within an asset class which are selected with a view to adding outperformance from within the broader asset class. Typically satellite investments focus on thematics (such as particular growth areas like technology or renewables), or geographical regions (such as emerging markets or China). Satellite selection is also important for tailoring to individual investor preferences.