Advisory Process


At Boag Financial we believe that risk management is a fundamental component of our duty to you as the client.

Risk management involves the identification and amelioration of risks. This means having a well-researched view, being prepared for the unexpected, and being able to react to events in an effective manner. Integral to this is the process of both allocating funds between different asset classes, as well as the selection of individual securities.

We conduct intensive research into capital markets to ensure that the exposures in your portfolio are commensurate with the risk and opportunity presented, and to ensure that your portfolio is effectively diversified. In this way, your portfolio will provide you with the best possible return given your risk tolerance. This is an ongoing process as we regularly update our assumptions and review your portfolio.


To be an effective partner in your wealth management we develop a complete understanding of your circumstances encompassing your current situation, financial aspirations and requirements and your approach to risk.

With this understanding we can then grow your wealth in a manner consistent with your needs and restraints.

Our investment process follows a five stage strategy:

1. Define Your Investment Needs and Objectives

We begin our work by carefully documenting your circumstances. This assessment helps establish objectives for income, growth and cash flow against a suitable risk tolerance.

2. Develop Long-Term Investment Strategy

After understanding your specific financial profile, we will incorporate these learnings into an investment policy statement. This statement integrates your needs and goals with current developments in the economic and financial markets.

3. Design Appropriate Asset Allocation

We select a target asset allocation based on your risk/reward scenario. We invest in both Australia and globally.

Equities and fixed income are often supplemented with complementary investment strategies to help reduce overall portfolio volatility and increase expected returns. We constantly challenge ourselves to allocate capital in the most productive manner.

4. Implement Portfolio Strategy

We are diligent in our implementation process with a dedicated eye toward market impact and minimising trading costs. Our goal is best execution with minimal risk for you.

5. Monitor, Analyse and Report on Investment Results

We monitor market conditions to evaluate relative values and determine whether your investments are meeting expectations. We also communicate with clients through quarterly reviews and ad hoc meetings.



The first step in the investment process will involve discussing and analysing your financial circumstances and future requirements, in order to determine what combination of assets is best suited to your needs.

We will examine both your capacity to take risk, and desire to take risk, as this will drive the expected return you should be targeting.

Your optimal asset allocation may be influenced by factors such as:

  • Your investment timeframe.
  • Your future employment plans.
  • Your funding needs, and need for regular income versus long term capital growth.
  • Your level of comfort with volatility of returns.
  • The general and specific risks associated with your portfolio.
  • Risks in relation to the structure through which your investments are made.

The other component of the asset allocation process is our analysis of valuations across the asset classes, and rigorous macroeconomic research. By combining this information with your profile we can then work with you to construct a portfolio consisting of investments in Australian and international equities, listed property, fixed income, and alternative investments.

Through effective diversification and portfolio construction, whether amongst different asset classes or within an asset class, we look to achieve an appropriate risk profile whilst offering attractive value relative to the market. Risk management and capital preservation are key themes underlying the portfolio construction framework. As market conditions change we will update your suggested portfolio accordingly.



We believe that thorough research should be the basis for every investment decision.

By examining likely macroeconomic and global structural themes over the short, medium and long term we determine which asset classes, countries, and industries represent the most attractive investment opportunities.

This will feed in to both our asset allocation and individual security selection, as we seek to understand the sensitivities of individual assets to these core themes. Further to this we will conduct bottom-up research to identify which individual securities offer the most compelling value proposition, and are best placed to perform through the cycle.

At Boag Financial we may also partner with external providers to supplement our internal research. We thoroughly examine all recommendations to ensure that they are appropriate for our clients before executing. Each research provider we select has undergone a stringent due diligence process to ensure that they share our investment philosophy and attitudes to risk, and to validate their investment process and experience.

By conducting in-house research, as well as utilising external research, we seek to gain a comprehensive understanding of the profit drivers and risks inherent in each asset, and how the asset is likely to perform under various scenarios.


In executing your portfolio we strive to provide best execution. This not only means we will always look to execute your investments in the market at the best available price, but also entails ensuring all third-party providers such as brokers, custodians, and administration  providers are providing competitive rates.

In addition we will not generally commence purchasing an asset unless the prevailing price is below our assessed value. We believe that patience provides superior results in the long-term.Whilst we have a long‐term investment horizon we will regularly review your portfolio to ensure that all assets still meet our initial investment requirements, and represent the best allocation of capital going forward.

We will sell an asset when it has sufficiently exceeded our estimate of fair value when there are better opportunities elsewhere, or if our original assumptions look unlikely to be realised. We will also apply our regularly updated macroeconomic views to the management of the portfolio, both in our asset selection process and in terms of protecting your portfolio when we believe systematic risks may pose a threat.

Continual monitoring of both your portfolio and the  capital markets, in general, is an integral component  of our risk management process.