Our Investment story.

Financial Choice started managing portfolios for clients back in 1998. At that stage it was very difficult to assemble a portfolio that didn’t use retail managed funds. They chose to cut out some of the layers of fees that made investing for the general public expensive.

Financial Choice as a financial advice provider were managing clients SMSF’s and direct shares and wholesale managed funds. In 2001 a new type of fund came to market in Australia called an ETF (exchange traded fund). This was launched by State Street Global and was the start of the ETF revolution.

ETF’s were listed on the Australian share market but were largely for big institutional investors.

In 2004 Russell Medcraft the founder and CEO of Financial Choice was commissioned to publish a book on the Australian Wealth Management Industry specifically the growing Self-Managed Superannuation market and what the future might hold in this growing market.

The book became a best seller and was called “Your super Your Choice”.

ETF’s predicted to grow exponentially

Russell predicted by the end on the decade the self-managed super market would be the largest component of the Australian retirement funding landscape and would continue to grow as investors took control of their wealth and not the Institutions.

In 2007 Russell was asked to write another book by Wylie’s, one of the world’s largest publishers, on the future of the Australian Wealth Management Industry. In this book Russell predicted the emergence of the ETF market and the adoption of largely passive investing. As a result of the 2007 market crash and freezing of funds that were locked up by fund managers, ETF’s started their popularity amongst advisers because they were listed on the exchange and you could buy and sell on the same day in most cases instead of waiting for your application to be processed by a fund manager. If you wanted to cash in you could simply sell your shares.

In numerous research papers and their own research conducted by Actuarial students from Macquarie University Financial Choice concluded that Active investing produced inferior investment returns when matched against index investing over a 10 year period. The research concluded that most large institutional investment houses largely matched the index or fell just below it and after deducting the heavy fees.

This research mirrored what was happening around the world where ETF investing was attracting 1 in 3 investment dollars of new money.

What did Financial Choice do?

After understanding that passive investing using a global asset allocation approach was delivering consistently better performance, global asset consultants were contracted to provide advice on and help construct model portfolios of ETF’s for Financial Choice clients.

The investment philosophy of Financial Choice is simple.

“Low cost, active asset allocation on a global scale using the best investment minds available to deliver above benchmark performance”.

That is exactly what Financial Choice has done.

Since 2010 the model portfolios have delivered consistently above benchmark performance using a selection of ETF’s that have been chosen.

Financial Choice team of experts

Russell Medcraft

Founder and CEO and author of “Super Rich”

Russell Medcraft CFP has been advising clients for over 32 years and is a SMSF expert adviser and created Australia’s first and largest online superannuation search service “Findmysuper.com.au” Russell provides advice to high net worth investors and Australian corporates on the best Superannuation platforms for their staff. He is regarded as one of Australia’s top 50 financial planners and a guest presenter on “Robo advice”

Advisory board

Chris Watling

Global economic analyst and asset Allocation consultant.

Longview was founded in 2003 by Chris Watling (CEO & Chief Market Strategist). The company developed out of his deep & prolonged interest in financial markets and how they are affected by global economic events. Over the last decade Longview has developed a diverse client base that includes: Financial Institutions; Hedge Funds; Fund of Funds Managers; Brokerage Houses; Private Banks; IFAs; Private Wealth Managers; Family Offices; and Asset Managers. We serve clients in Asia Pacific, North America and Europe. Both Chris and Harry Colvin (Director & Senior Economist) speak at conferences and events across the globe, engaging with a broad variety of macro and markets perspectives

David Bassanese

Economist and specialist adviser to our investment committee

David Bassanese is one of Australia’s leading economic and financial market analysts. David is Chief Economist with BetaShares, an independent Australian manager of exchange traded products (ETPs), with over $A2.5 billion in funds under management. He also currently writes a bi-weekly comment on economic and financial issues at The Switzer Daily.

David is a former senior financial columnist for The Australia Financial Review newspaper, and interest rate strategist with Macquarie Bank. His is also a former Federal Treasury and OECD economist, and a graduate of Adelaide and Harvard Universities.

Vincent Ting

Actuary and portfolio construction expert.

Vincent first published the analysis of the major fund manager’s performance against indexes that led to the construction of the model portfolios. Vincent has qualifications from Macquarie University that assist us in analyzing the long term performance against the benchmarks.

Alexander Hicks

Client Care

Alexander (Sanders) Hicks is in charge of our portfolio implementation and customer service. Alexander has extensive experience as a financial planner and has worked for large insurance companies as a Business development manager.

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