Advice fees waived

For a limited time only we have waived the fees for first-time users of our advice service. The only condition is that you complete the form in full and have an intention to invest $5,000 or above. And don't worry we won't charge you a fee if you don't invest this amount, we just want you to try the great service.

Recently we've enhanced and upgraded our portfolio advice to incorporate the latest financial engineering techniques, and build on our impressive record of advising on client portfolios via a risk management framework.

Our approach

Our approach is to determine the best portfolio strategy for an investor equipped with simple, transparent and well-established financial instruments. Instead of complexity we build from simplicity: our building blocks are consistently performing unit trusts with long track records. An additional requirement is that strategies we recommend have to succeed in times of extreme market stress -- not just during good times. Although we can't guarantee clients will make money every year we aim to put them in a portfolio that limits the downside without taking too much away from the upside.

The dollarDEX method uses ideas from constant proportion portfolio insurance (CPPI), a technique that helps with managing downside risk. While CPPI has pros and cons, careful tuning of CPPI provides investors with reasonable upside and some protection against extreme market conditions. We make use of "certainty equivalent surfaces" to help formulate a portfolio strategy. On behalf of the client we effectively navigate along these surfaces to add protection against a crash without imposing unacceptably lower returns in calmer markets.

Extensive financial simulations of our new model using Monte Carlo techniques show our approach is robust under a wide variety of potential market conditions including crisis scenarios. Moreover our approach will be attractive to investors of different risk appetites, including the type of investor that fits the "prospect theory" of Daniel Kahneman and Amos Tversky (in a nutshell, investors who hate losses disproportionately much more than they like gains of the same amount).

Enhanced reporting

In addition, we provide a new online report format to users of the advice service. The format builds on the report structure and features already familiar to our users but reports can now be viewed directly in the user's online account without the need for a PDF file. At the input page clients may now specify a protection level, a more granular range of time horizons, and in the output enjoy more detailed comparisons of current and proposed portfolios.

All in all, our upgraded advice service provides richer features, more convenience and better risk management. A free trial is available at the link below.

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Page last updated 23 Jul 2012

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