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Archives for November 2020

The Investment Collective's Gladstone Staff

News: Investing in a new city

The Investment Collective is pleased to announce expansion into Gladstone, Queensland effective 1 November 2020.  The Gladstone acquisition is an existing business with two staff, who currently tend to the personal financial needs of 50 clients.

“The new office location will give us an opportunity to interact with a different set of clients and allow us to continue towards our goal of becoming known as a leading and progressive financial services provider across the east coast of Australia,” says David French, Managing Director of The Investment Collective.

Part of The Investment Collective’s business growth plan involves finding complementary acquisitions. It is important however, to ensure that any acquisitions will fit with our ethos and allow us to continue providing our clients with the quality service they have come to expect.

Some important information regarding the Gladstone office:

  • Situated just south of the Tropic of Capricorn, Gladstone is a progressive city with a population of about 60,000 and an economic base focused on heavy industry and shipping.
  • Formerly Godfrey Pembroke, operations under The Investment Collective will begin on 1 November 2020, with the business operating from 2/136 Goondoon Street, Gladstone.
  • The acquisition comes with two staff, one a financial adviser the other an experienced administrator. Both staff are key to ongoing operations

“Gladstone is an incredibly important industrial hub and recent investment in new social infrastructure really highlights the attraction of the city.  We’re very excited to now have a proper base there, staffed by competent locals” says David French.

If you have any queries regarding operations or business continuity at the Gladstone office please call 1800 679 000 or email us at

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In financial planning it's important to be aware of a client's risk profile.

The importance of risk profiles and asset allocations

One of the most important facets of financial planning is to understand our client’s risk profiles. Put simply, this is your tolerance to market volatility and downturns particularly, or the ‘sleep at night’ factor.

If your portfolio is invested with an asset allocation that does not match your risk profile, you will always be uncomfortable with market movements. The converse is that it is invested in line with your tolerance, and you aren’t concerned with short term volatility.

Typically, your risk tolerance is higher when you are younger, and decreases as you age. Think about the crazy things you might have done when you were 21, compared with the measured approach to your activities when you are 65. We react in exactly the same way with our investment decisions.

At 21, we have time on our side for market volatility and growth to smooth out, but this is not true as we age. This means that we must adjust the way we invest portfolios for clients in later life so that the exposure to growth assets is reduced, and there is an increase to the defensive assets.

Defensive assets are things like bonds, cash and other fixed interest instruments, that provide an income with a relatively level and stable capital value. Growth assets are domestic and international equities, property and infrastructure investments that have the ability to both grow significantly in value, as well as fall in value in times of stock market volatility.

Portfolios need to be constructed with a mix of these two broad categories, based on the client’s risk profile. Growth investors will typically have at least 80% invested in growth assets, whilst a moderately conservative investor might have only 20% in this category. A typical balanced portfolio, is middle of the road, a mix of growth and defensive assets in balance. This type of portfolio suits many people and doesn’t require much in the way of adjustment as we age. It’s perhaps not as exciting as a growth model, but is always a solid performer over the longer term.

At The Investment Collective, we will reassess your risk profile every 3-4 years, or more frequently if you become uncomfortable with market movements. This ensures that your portfolio matches your degree of comfort with markets.

If you would like to discuss the asset allocation in your portfolio, give one of our friendly advisers a call.

Please note this article provides general advice only and has not taken your personal, business or financial circumstances into consideration. If you would like more tailored advice, please contact us today.

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