A Proven Investment Methodology Rooted in Investor Behavior
Founded 17 years ago, this investment methodology is built on real-world advisory practices and a deep understanding of investor behavior and sequence risk. Its primary goal is to prevent poor decisions at the wrong times, which can significantly harm long-term returns.
A common behavioral pattern among investors is to “panic and sell” during market downturns or “rush in” after markets rise, often just before major corrections. Research from Griffith University in Australia supports this, showing that switching volumes tripled during the pandemic. At the worst points of the downturn, over 70% of switches had a negative impact on investors’ portfolios.
This methodology helps investors avoid these emotional pitfalls, promoting smarter decisions and long-term success.
The CAREphilosophy®: Achieving Success Through Diversification
The CAREphilosophy® is built on the principle of broad market diversification across all asset classes within an investment portfolio. At its core, the philosophy emphasizes that asset allocation is the primary driver of investment returns, while attempts to time the market often add little value over the long term.
Frequent changes in investments, driven by the desire to beat the market, can undermine long-term objectives. Human nature compels us to react to periods of underperformance, but these reactions can negatively impact our financial goals.
Think back to a time when you may have sold an investment because it wasn’t performing well at a particular moment—only to later see it recover or even outperform. This illustrates how emotional decisions can be detrimental to long-term success.
By focusing on strategic diversification and staying the course, the CAREphilosophy® helps investors avoid these common behavioral pitfalls and remain aligned with their long-term goals.
The “C” in CARE: Core Investments.
Core investments form the essential foundation of your portfolio. They offer cost-effective, broad diversification across key asset classes, including Australian and international shares, listed property trusts, and Australian and global bonds.
These investments are carefully aligned with your risk profile and follow a long-term buy-and-hold strategy, ensuring stability and growth over time. With Core investments as the backbone, your portfolio remains well-positioned to weather market fluctuations while pursuing sustainable returns.
The “A” in CARE: Active Investments.
Active investments represent the dynamic element of your portfolio. This is where we proactively manage and adjust your investments, responding to market conditions and asset class performance.
Our team closely monitors market trends and valuations, making timely adjustments to seize opportunities and enhance your returns. With this hands-on approach, we aim to keep your portfolio agile, ensuring it evolves with changing economic landscapes.
The “R” in CARE: Reserves.
Reserves play a crucial role in your overall investment strategy, offering key benefits for retirees and pre-retirees.
First, they provide a steady income stream with minimal risk to your capital, ensuring financial stability. Second, they act as a buffer during market downturns, giving you peace of mind by maintaining the cash flow you need, regardless of market fluctuations.
This strategic reserve ensures your lifestyle remains uninterrupted, even when other investments experience temporary declines.
The “E” in CARE: Enhanced Investments
The Enhanced component focuses on outperforming the general market, targeting what investment professionals call “Alpha.”
This part of your portfolio may include directly held shares, managed funds, or Exchange-Traded Funds (ETFs). By actively seeking higher returns, Enhanced investments aim to add value beyond traditional benchmarks, complementing the other elements of your portfolio for greater long-term growth potential.
The Investor Gap: Insights from DALBAR
Since 1994, DALBAR’s Quantitative Analysis of Investor Behavior has examined how investor actions—buying, selling, and switching investments—impact returns over both short and long-term periods.
The study revealed that, over the 30 years ending in 2022, the average annual return for the largest 500 companies in the U.S. was 9.7%. However, during the same period, the average equity investor earned just 6.8% annually.
This 2.9% annual gap highlights the importance of disciplined investing. It reflects the cost of emotional decisions and poorly timed trades, underscoring the value of staying the course through market ups and downs.
For more information and to discover the benefits of the CARE Investment Philosophy you can watch a series of informative videos.
Meet the CARE Investment Committee
Meet the Team
Emmanuel Calligeris
BEc, MBus (Finance)
Chairman, CARE Investment Committee
Emmanuel holds a degree in economics and has over 20 years of experience as the Chief Investment Officer at OnePath Investments (the investment arm of ANZ Bank). During his tenure, he was responsible for managing $13 billion in assets, demonstrating deep expertise in portfolio management and investment strategy.
Rob McGregor
SIA (Aff), ADFP
Founder of the CARE Investment Philosophy
Rob co-founded GPS Wealth and has been instrumental in developing the CARE Investment Philosophy over the past 15 years. With hands-on experience managing $100 million in client funds, Rob’s leadership ensures the philosophy remains practical and results-driven.
Grahame Evans
GAICD, DipSM, MBA
Risk and Compliance Member, CARE Investment Committee
Grahame has over 35 years of experience in the financial services industry, specializing in risk management and regulatory compliance. His extensive background ensures the CARE philosophy is managed with prudence and professionalism.
Dr. Mark Brimble
BCom (Hons), PhD, CPA, FFin
Independent Member, CARE Investment Committee
Mark holds a doctorate in capital markets and has a strong focus on investor behavior. His academic expertise offers a valuable perspective on market dynamics and the psychological factors influencing investment decisions.
For more information on how you can benefit, contact us today to for a private appointment
