Investment philosophy

Our ethos, principles and approach

At Zone Financial, our investment philosophy is built on a steadfast commitment to providing our clients with personalised and comprehensive guidance to help them achieve their lifestyle aspirations and financial goals. We believe that successful investing requires a disciplined approach, rooted in a deep understanding of market dynamics, risk management, and the unique needs of each individual investor.

Zone Financial

With a focus on long-term growth, preservation of capital, and prudent risk-taking, we empower our clients with the knowledge and strategies necessary to navigate the complex and ever-evolving landscape of the financial markets. Our dedication to transparency, integrity, and a client-centric approach forms the foundation of our investment philosophy, ensuring that we are always acting in the best interests of those we serve.

Four key principles distinguish the Zone Financial Investment approach:

1. People Driven, Data Informed
2. Considered Portfolio Construction
3. Holistic Risk Management
4. Confidence through Collaboration

“We are focused on achieving sustainable, risk aware, after tax outcomes, to help our clients meet their goals and maintain their desired lifestyle — for themselves and their families — long into the future.”

1. People Driven, Data Informed


In the world of wealth management, you’ll often hear the phrase ‘data driven’.

At Zone Financial, we are not data driven, we are people driven, and data informed.

We are, first and foremost, anchored in a people centric approach that revolves around gathering valuable insights into each client’s financial goals, preferences and aspirations. Investment plans are always designed to place a client’s needs and best interests first.

Our investment team continuously compile and analyse extensive data sets, identifying patterns, implications and opportunities that help shape our investment decisions. The sophisticated financial information we possess – from the evolving financial market insights to models based on decades of research on dynamic domestic and global investments – are tools that allow us to better serve our clients.

Many wealth management firms weave data into a set of rules that they then apply across the board to their client base, essentially adopting a one-size-fits-all approach. At Zone Financial, we recognise that everyone has unique goals, unique lives, and unique visions of their ideal financial future.

Accordingly, the data sets we work with are points by which we navigate, but there is no single North Star. Instead, to create strategies that transcend volatile markets and facilitate the outcomes clients are seeking, we look at the full constellation of variables and establish a tailored approach catered to your lifestyle and goals.


2. Considered Portfolio Construction


Optimising an investment portfolio is part art, part science.

As an art form, a well-constructed portfolio requires nuance and creativity: it should reflect an investor’s particular capacity and willingness to accept various risks, as well as their specific tax liabilities, return expectations, liquidity requirements, lifestyle preferences, and specific personal values (including
environmental, social and governance considerations).

As a science, portfolio construction relies on combining individual investments and asset classes (growth assets in particular) in ways that optimise expected return (in excess of inflation and tax) within the constraints of multiple risk drivers.

Importantly, return opportunities undergo a rigorous analytical process, and are assessed in light of a broad spectrum of variables. We take into account franking credits, investment management costs, and fund manager alpha (that is, the return that can be generated over and above standard industry benchmarks). This is in contrast to the approach generally taken in the industry, whereby asset allocation decisions are driven by
expectations around the performance of standard industry benchmarks.

The nuance required to assess and balance often-conflicting drivers of portfolio design can seem overwhelmingly complex. Our role is to help navigate investors through this complexity. Our experienced and long-standing Investment Committee, supported and chaired by an external consultant, plays a vital role in
setting the framework and methodology of our investment approach. We meet quarterly to optimise client portfolios, drawing on an extensive range of research and forecasting inputs.

“Over time, a truly diversified portfolio can smooth out the volatility and enhance the overall stability of your investments.”

3. Holistic Risk Management


A crucial aspect of wealth management is assessing and minimising risk, in order to provide stability over the long-term. In contrast to the traditional approach – where volatility is the sole risk considered in portfolio construction – at Zone Financial we adopt a holistic approach, whereby portfolios are established and
monitored through multiple risk lenses.

Our assessment of risk goes well beyond measures of expected volatility. As the primary risk considered in most asset allocation models, expected volatility is important, but it is not the complete picture. Among other variables, we factor in liquidity risk, equity risk, currency fluctuations, holding durations, credit risk, inflation, and diversification strategies. By taking a holistic approach to potential risk, we are able to more effectively insulate our client portfolios, and fortify against possible negative impacts.

Investing for the long term allows you to harness the power of diversification. A well-diversified portfolio spreads risk across various asset classes, sectors, and geographical locations. This approach helps protect your investments from the impact of any single investment’s underperformance. Over time, a truly diversified portfolio can smooth out the volatility and enhance the overall stability of your investments. By spreading your risks and taking a balanced approach, you reduce the likelihood of being significantly impacted by adverse market events, ensuring a more secure financial future.


4. Confidence Through Collaboration


Whilst we recognise clients partner with us for our investment expertise, we take great pride in not only managing portfolios, but also providing the tools that can help our clients feel more capable and confident in their financial decisions. We make sure you understand the essential concepts behind your investment options. That way you can make informed decisions and feel confident in the strategies we implement together.

We communicate proactively and regularly about our process. We have no in house products, hidden fees or hidden agendas. We are not licensed through the providers of financial products, which allows our firm the objectivity to select the most appropriate solutions available. By consistently analysing opportunities to reduce portfolio costs and create tax efficiencies, we provide clients with the confidence that their portfolio is being optimised on an ongoing and consistent basis.

“Our approach is collaborative, transparent, and consciously dynamic.”

At Zone Financial, you always have options. We work with many clients who prefer to delegate the entire management of their investments to our team, relying on the expertise, knowledge and experience of our Advisers to guide their journey. We are also equally comfortable working with clients who prefer to take a more hands-on approach to their investments. We’ll adjust our approach according to your individual preferences to ensure a smooth and enjoyable investment experience.


Long-term strategies, tailored to your needs…


At Zone Financial, our approach to investing is carefully considered and applied for each individual client, and solutions are always bespoke. Our approach is collaborative, transparent, and consciously dynamic: as your life and lifestyle evolves, your optimised investments will necessarily change over time. By creating tailored, long-term strategies, we allow you to invest your wealth purposefully, and to invest more of your time into the lifestyle you’ve worked hard to enjoy.

Updates and reports

Zone Financial

We are a strategic wealth advisory for forward thinking individuals and families, supporting them to use their wealth with intention and purpose to create the life and legacy they choose.

Contact details

Tel  02 8358 5580


Level 1, 154 Pacific Highway,
St Leonards NSW 2065

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