Lovetts holds a Limited Australian financial Services License (AFSL).

This allows us to help you build a portfolio of passive investments that will generate income and capital growth while affording some protection from the ups and downs of the share market. We achieve this by practicing appropriate diversification while targeting the best industry segments in global regions of superior performance.

Build Wealth

Strategic international outlook

Australia makes up only a very small proportion of the world’s investment markets.  There is a tax benefit investing in Australia in that corporate tax paid by Australian companies will be a tax credit for Australian investors.  Nonetheless there are many industry circumstances where the best in class is not located here.  It’s very important to look at the overall return as capital gains and income (even taking account of the absence of foreign company tax credits) may be significantly higher for other jurisdictions.  Aim to invest in the “best in the world” that has sustainable competitive advantage over the long term.

Industry segments and regions

  • Where is the best place to invest in information technology?  USA?  India?
  • Where is the best place to invest in the energy sector?  Australia?  Globally?
  • Where is the best place to invest in infrastructure?  India?  China?
  • Where is the best place to invest in consumer stocks?  India?  China?  Europe?

What are the right industry segments that provide value, will produce cash flow, growth, where companies have strong balance sheet performance in stable earnings?  Where are the risk factors reduced?

Exchange traded funds (ETFs)

We like ETFs! They substantially reduce or eliminate management risk associated with each isolated company.  We focus on the performance of regional industry segments and isolate the appropriate ETF.

Monitoring and review

No-one really knows what is going to happen in the future.  Some predictions may be more probable than others but none are certain.  It’s necessary to monitor reasonably closely and respond to real changes in the strategic environment.

Industry analysis

There are lots of management texts that provide tools to analyse the performance of industries and the forces that act on industry groupings.  Is there sustainable competitive advantage?  Do industry customers or suppliers have strong or weak negotiating power?  Are there threats from new entrants or substitutes?  Is the regulatory, political, environmental and social situation conducive of strong industry profits or not?

Dollar cost averaging

Gradual entry into a strategic investment position (or exit) may be the best way to manage timing risks.  A judgement about the likely near-term movement in prices can determine whether you go in hard or in a more measured fashion.