We help our clients to build and maintain a robust investment portfolio. Because we take the time to understand your entire wealth perspective we can better align the investments to your specific individual objectives.
At Libero Capital we apply an active approach to portfolio management. Through rigorous investment analysis we seek to identify under-priced securities, with the goal of only incorporating investments which enhance the overall risk/return profile of your portfolio.
Libero Capital has a particular focus on Quantitative Investment Management. Quantitative Investment Management involves using financial models to employ fundamental analysis, statistical analysis and econometric analysis in order to maximise returns specific to your individual risk tolerance.
By creating a tailored portfolio which takes into account your individual goals as well as the tax structure of the entity through which you are investing, Libero can focus on maximising your after-tax returns. This is in contrast to the traditional “fund manager” approach of focussing on pre-tax returns.
Through the use of “direct” listed investments, specific strategies can be employed such as the maximisation of franking credits and capital gains tax minimisation. This increases the investment proceeds you actually receive in the hand. Furthermore investments can be tailored to the tax environment of your investment structure, be it a family trust, super fund, company, or an investment in your own name. Over time this can have a materially positive impact on the growth of your family wealth.
While the Australian share market offers the prospect of strong long term returns, it is also limited in the investment opportunities it can provide. For this reason Libero Capital portfolios are diversified across both asset classes and geographic regions, to ensure we can access the best investment opportunities available.
The effective use of diversification also provides an important benefit from a risk vs return perspective. By investing in non-correlated asset classes, we can effectively achieve a greater level of return for a lower level of associated risk.
Libero Capital employs its own proprietary quantitative risk management system to the portfolios. Based on academic research and backtesting, it ensures that your portfolio is actively managed to the level of risk agreed upon. Should markets begin behaving in such a way that your assets start to “correlate”, meaning that diversification begins to lose its effectiveness in protecting downside losses, we will adjust your portfolio accordingly, to bring it back towards its target level of risk.
Libero Capital has access to a number of institutional broking channels. Not only does this ensure cheaper trade execution for clients, but it also means that orders are “worked” in the market via professional trading algorithms. This ensures that investments are executed at the best possible price.
Having institutional brokerage relationships also means that Libero Capital has access to the latest market and stock specific research from top ranked analysts and economists.
Libero Capital does not take any trail commission on managed funds, nor charge any brokerage commission on trades. The only incentive we have when making an investment on your behalf is to maximise the return of your portfolio.
Libero Capital portfolios are completely transparent. This enables you to see all the underlying securities which you hold, which is not the case with a traditional managed fund. This transparency and oversight over individual assets also allows us to cater for a degree of customisation if requested, should you not wish to hold a specific company, or if you have a specific “client directed” purchase request.
Our proprietary investment management process ensures portfolios are dynamically maintained to target the appropriate and agreed level of investment risk. We place a high priority on “preservation of capital” especially in times of high market volatility with a goal to improve long term absolute returns for you. We believe capital markets are inefficient over time and that permits opportunities to be captured through active management to generate better risk adjusted returns.
Our portfolios are highly diversified across global and domestic assets in order to capture different sources of return for your portfolio while minimizing volatility. We can more effectively and equitably manage portfolios if you provide us with Limited Discretion. This enables us, within a pre-agreed investment strategy to move quickly to implement investment opportunities as well as effectively risk manage the portfolio without needing to wait for prior approval from you.