How We Build Investment Portfolios Using Sentinel & BMIS Research

One of the most important factors in long-term investment success is the quality of the strategy behind the portfolio. Yet many investors choose funds based on marketing messages, past performance, social media trends or high-fee products that add little value.

At Active Wealth, we partner with two highly respected investment research groups — Sentinel Financial Group and Brad Matthews Investment Strategy (BMIS) — to construct disciplined, research-driven portfolios designed to manage risk, pursue strong performance and adapt to market conditions.

Here’s how our approach works and why it benefits investors seeking long-term confidence and clarity.

1. Macroeconomic and Market Analysis

BMIS brings decades of experience assessing economic cycles, interest rate trends, inflation pressures and global market conditions. This top-down research helps determine:

• Growth vs defensive asset allocations
• Market opportunities and risks
• Sector positioning
• Short-term volatility expectations
• Long-term return assumptions

This ensures portfolios are not built blindly — they are informed by real data and global economic conditions.

2. Deep Research Into Funds, ETFs and Managers

Sentinel provides an evidence-based approach to selecting investment options, leveraging:

• Mercer institutional research
• Zenith fund research
• FE Analytics data
• SQM database analysis
• In-depth fund manager interviews (over 140 conducted in 2024)

This allows us to assess:

– Consistency of returns
– Risk management processes
– Fees vs value
– Investment team capability
– Portfolio construction methodology
– Alignment between strategy and client goals

Not all investment products are created equal. This research separates marketing hype from genuine performance.

3. Risk-Aligned Portfolio Construction

Every portfolio is built based on the client’s:

• Risk tolerance
• Investment timeframe
• Income or growth objectives
• Liquidity needs
• Tax considerations

We use portfolio modelling tools that assess thousands of scenarios. This helps us construct portfolios with diversification across:

– Global shares
– Australian shares
– ETFs
– Active managed funds
– Property and infrastructure
– Bonds and fixed interest
– Alternatives where appropriate

The result is a resilient portfolio designed to handle different market conditions.

4. Tailored Investment Structures

Investment choice is only half the strategy. Structure matters too.

We design portfolios for:

• Superannuation and SMSFs
• Investment trusts
• Company structures
• Personal investments

This ensures tax efficiency, asset protection and alignment with long-term planning.

5. Ongoing Monitoring and Adjustments

Markets evolve. Asset classes rise and fall. Fund managers change teams or strategies.

Our portfolios are actively monitored, with:

• Regular reviews
• Rebalancing when required
• Performance monitoring across sectors
• Platform reporting and transparency
• Client updates explaining movements and changes

This helps clients stay informed and confident — especially during volatile periods.

6. Evidence, Not Emotion

One of the biggest values of professional portfolio management is reducing emotional decision-making. Investors who sell during downturns often lock in unnecessary losses. Using a structured, research-backed approach helps clients stay disciplined and focused on long-term outcomes.

Why This Matters for High-Income Investors

Investors need:

• Tax efficiency
• Low-cost access to institutional-quality research
• Diversification
• Consistency
• Professional oversight
• Alignment with long-term goals

Our partnership with BMIS and Sentinel ensures your portfolio is built with the same frameworks used by professional institutions — but tailored to your personal financial strategy.

This article provides general information only and does not consider your specific circumstances. Before making investment decisions, consider speaking with a licensed financial adviser.

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