Nucleus looks to add value to your portfolio through market leading asset allocation coupled with a stock picking focused on quality and stable returns rather than chasing the latest growth story.
Supported by a team of experienced analysts, the key focus for Nucleus over the next few years is managing investment allocation following record low interest rates and demand shortages globally. Closer to home, the Australian investor is facing the aftermath of historic resources and property booms that have distorted numerous facets of the Australian economy.
The situation is not “normal”. You need an investment solution that adapts, from analysts who anticipate future conditions.
There are many ways to achieve investment success. At Nucleus we look to three main factors:
Forward thinking Asset Allocation
The first decision to make is whether to invest in Australian Shares, International Shares, Bonds or to seek the safety of cash.
Many financial planners use “strategic” asset allocation. This is an admission that asset allocation is hard and essentially avoids making a decision by using long term weights. Which is fine. If you don’t mind waiting for 20 years for averages to re-assert themselves.
At Nucleus, we believe a more active approach is warranted. Australia is going through an unprecedented period without an economic recession. The economy is struggling to adjust following the largest commodity boom that Australia has seen. Australian property prices are at record highs. Your portfolio should reflect this.
Smoothing the cycles
There are funds that try never to lose money. The problem is that this comes at a cost to performance – you give up a lot of upside to protect from the downside.
At the other end of the spectrum, there are funds that use debt to supercharge returns. Unfortunately, the supercharging works in both directions – losses can be supercharged as well as gains.
At Nucleus, our investment strategy is to “smooth the cycle”. We look to limit the downside without being so conservative that we lose sight of the upside.
A mixture of Quality and Value
When it comes to choosing stocks, there are once again lots of different strategies.
At Nucleus, we look to blend measures of quality and value to choose the best stocks. We look to buy high-quality stocks at reasonable prices and cheap stocks that aren’t low quality.