Investment Management DRAFT 2019-06-09T04:21:40+00:00

Are your Investments Performing?

We are portfolio managers, not stock sales people. We seek to allocate your investments globally, in geographies and industries that are growing and defensive. In situations that don’t risk loss of your capital and in instruments that enable you to have liquidity when you need it.

Investing Together

Understanding the families reason for investing

Each family and their family members are unique, their needs and objectives are unique, as are their interests and comfort with different investment classes. Before we can recommend an investment strategy that matches your needs we must understand fully your personal circumstances, experience and interests.

Reasons to invest may vary, an example of common reasons include the below:

Investing in the right structures

Selecting the right investment is important, however investing using the right structures is critical. Within Australia you may invest in your own name, through a company, trust or self managed super fund.

  • Each has a different tax treatment around long term capital gains (and losses) and short term trading gains (and losses).
  • Each has different direct and indirect tax implications based on the asset class being purchased. For example real estate and securities may have different direct and indirect taxes based on the holding entity being used.
  • Each has different asset protection capabilities that should be considered especially in the case of private equity investments where as a vendor of an asset you may need to provider warranties that you can’t limit through insurance.

Cashel House is a tax and capital protection aware investment manager. Net after tax retained gains are more important than headline gross returns.

Documenting the investment strategy

As part of our investment mandate we will document your reason for investments and objectives. We will do this via way of a Statement of Advice and update it regularly through a Record of Advice.

In our annual review as required under the Future of Financial Advice (FOFA) legislation we will review our performance compared to the investment mandate and vary this as needed in order to better meet your investment objectives.

Setting liquidity thresholds

When we invest we are mindful of the liquidity profile of each client.

Liquidity at the portfolio level needs to be mindful of the following:

  • Investing in a long term growth opportunity using short term cash reserves can equally cause the investment to fail, just as much as poor management or poor business practices does within the investment itself.
  • When we construct your asset allocation we must be mindful of what liquidity your lifestyle needs in the next 6 to 12 months, and what liquidity you may need should the unexpected occur (and you don’t have appropriate insurances to deal with it).

Liquidity within the portfolio needs to also be considered:

  • For example we consider the risk of not being able to capture a paper profit. If there is no ability to sell or the position is too large and the trading volumes too low this can lead to a gain not being captured. As such investment position sizing is very important.

Dynamic asset class allocation through changing cycles

With a global custody platform we are not limited in the asset classes or investments we can make. In the same vein we do not create generic investment models that are only updated annually, or are inflexible leading to unnecessary transaction costs when money is contributed or withdrawn from a portfolio.

As a family office we invest across all asset classes. A typical portfolio may look like the following:

Investment selection and sizing within asset class

Within each asset class we strive to select the best opportunities based on a number of metrics, these include (but are not limited to):

  • Investing with strong management (and investment managers) that we have known for a long time, and whose actions are predictable
  • Understandable business models which create tangible measurable value
  • Capital light and high cash conversion
  • Sustainable competitive advantage
  • Have operational leverage that can be expanded through capital and marketing investment
  • Attractive stock valuations metrics
  • Into securities that real. No synthetics, repackaged or derivatives that have unnecessary costs or legal risks.

These screens means that we invest through the following:

  • internally managed separately managed accounts, and
  • external specialist investment managers, and
  • direct public and private equity holdings that we would deem to be special situations.

Examples of investment managers that we use include the following:

Ongoing Active Capital Management

Whether you are a Family Office or a Superannuation client (or both) your Cashel House Financial Planner will work with our portfolio managers to maintain daily Capital Management, Asset Allocation and Security Selection within you individual portfolio. These includes reviewing if your capital should be invested or not, what weightings you have per asset class and what investments sit within each asset class.

Both asset allocation and security selection of very important, but it should not be comprised by the larger picture of capital allocation. Capital allocation is the big picture management of your investments in riskless or risky investments, in other words you investment in government guarantees cash deposits, or investments that poss some level of growth and capital loss. Cashel House is forever focused on managing capital by way of withdrawing capital in periods of valuation and direction uncertainty, and applying it in times of opportunity and trend based confidence. Our objective in doing this, is to protect capital ahead of downturns and to grow capital in times of market expansion.

This is best illustrated via the below:

Book your free personal appointment with a Cashel House investment portfolio management specialist.

Please fill in the form and we will be in contact to discuss your investment management needs.

Frequently Asked Questions

To enable us to invest time and resources into our relationship we expect all clients to invest a minimum of $1 million into their Cashel House investment account. We will accept smaller where they are family members of existing clients, and/or demonstrate a commitment to reaching this minimum through savings, earnings or inheritance.

Cashel House is an investment manager. We construct and provide ongoing active management of a diversified investment portfolio personalised to your risk profile, liquidity needs and in complement to your other personal assets. We are remunerated based on the seize and performance of your wealth growth. Our staff do not receive commissions for selling products or executing transactions. We are aligned to protecting and growing your wealth only.

Cashel can buy and sell shares through our partners with Bank of New York like a stock broker, but we are not a stock broker. Stock brokers are remunerated based on having their clients buy and selling stocks. They receive commissions from selling stocks and structured products. They are paid regardless of whether the clients wealth increases or decreases.

  • Personal assets are those best described as lifestyle assets, such as your primary place of recidence, motor vehicle or holiday home.
  • Market assets are those assets that are invested in market assets that rise and fall with markets generally, and
  • Aspirational assets are those that you are likely in full or partial control of, such as your business. They typically have much higher levels of risk and hopefully higher levels of return.
Any. Through Cashel House you can invest in any asset class, over 40 different stock exchanges, over 1,000 managed funds, in cash accounts with a variety of banks, and over 4,000 different companies.
No one investment portfolio is the same. However normally they will include an allocation to each of the following asset classes:
  • Cash
  • Term Deposits
  • Real Estate
  • Australian and International Managed Funds
  • Australian and International Shares
  • Hedge Funds, Private Equity and Special Situations.

The allocation to each will depend on your risk profile, experience, liquidity needs and personal interests.

A separately managed account is an investment mandate that enables Cashel House to invest in direct shares, but to actively manage them without interruption to you for each re-balance, exit and new investment. This enables you to hold shares directly in your name, without the additional costs of a fund manager.

Cashel House operates 3 discrete separately managed account strategies:

  • Cashel Special Situations
  • Cashel Private Portfolio
  • Cashel Global Special Investments.

Cashel House is an active investment manager. We seek to constantly review your investment portfolio, the investments and investment themes it is invested in, and the proportion of investments versus cash that you may hold at any time. It is this last difference that makes Cashel House an active investment manager. In times of confidence we seek to invest in growing markets, in times of weakness and uncertainty we seek to reduce investment positions and hold funds in cash accounts while markets reduce. Because of this Cashel House can be more costly.

Exchange Traded Funds (ETF) are investment strategies that invest in specific exchanges or sectors. At all time they must be invested in the investment strategy specific to its mandate. Because of this, each time they receive further funds they need to invest it in their investment strategy regardless of whether the markets are expensive or not. While ETF can be cheaper, they can often lead to lower returns than an active asset manager.

Your assets are held safely either within a custody account with J.P. Morgan (one of the 3 largest custodian banks in the world), or in a securities account with Bank of New York Mellon (the largest custodian bank in the world).

Through one of Cashel House’s audited platforms overseen by third party trustee’s and with global custody arrangements.