MCG Wealth Management has developed a differentiated investment approach to achieve our goal of delivering consistent and attractive absolute returns for our clients. During periods of market stress, preserving client's capital within their agreed level of loss tolerance is paramount.
Once a client's risk tolerance and return objective are established, the initial investment decision is to determine their portfolio weighting across three broad strategies: Preservation, Absolute Return and Conviction. The Preservation strategy seeks returns of 1.5% above inflation over rolling 1 to 3 year periods, with low risk of experiencing loss. The Absolute Return strategy seeks returns of 5% above inflation over rolling 5 to 7 year periods, with low risk of experiencing material loss. The Conviction strategy seeks returns in excess of 6% above inflation over rolling 7 to 10 year periods, with low risk of permanent loss of capital but a tolerance for material loss over the shorter to medium term.
We conduct extensive due diligence in selecting the suite of investments we believe will best achieve the risk and return objectives for each strategy. Investments will be made through a combination of specialist managers and Exchange Traded Funds (ETF's).
Adjusting a client's portfolio weighting across the strategies or making changes to the investments selected, will be assessed regularly. We have a strong bias for "thoughtful inertia" before we recommend any changes to a portfolio.