A client recently sent through a news clip highlighting the collapse of a major investment fund. It was available through a well-known superannuation platform and marketed as a secure, diversified option. Thousands of Australians are now unable to access their retirement savings.
It’s a distressing situation, and one that understandably raises questions. Could this happen to me? How do I know I’m protected?
These are exactly the kinds of questions our investment philosophy is built to answer. While this specific fund would not have passed our filters, it’s a timely reminder that platform availability does not equal suitability. True investment safety begins with governance, not guesswork.
What Went Wrong?
While we won’t name names here, the fund in question failed for several reasons:
- It was highly illiquid, with most assets tied up in direct property and infrastructure
- It offered little to no access for investors who wanted to exit
- It was allegedly linked to insider financial misconduct
- And critically, it remained accessible on popular investment platforms, despite these risks
This wasn’t just an investment failure. It was a failure of oversight, transparency, and governance.
Platforms Are Not a Substitute for Adviser Oversight
In superannuation environments, trustees do have a legal obligation to ensure that fund investments are appropriate and aligned with the fund’s documented investment strategy. But even with these governance requirements in place, risks can remain—particularly when it comes to complex or illiquid investments.
Outside of super (in custodial or IDPS platforms), that level of oversight doesn’t apply. These platforms simply provide access, not appropriateness. The responsibility for assessing suitability rests almost entirely with the adviser or investor.
That’s why adviser-level governance matters. Our investment process adds an essential layer of protection across all portfolios—super and non-super alike—by applying consistent filters, rigorous due diligence, and the backing of an experienced investment committee with access to deep institutional research.
Our Safeguards Start with Philosophy
Before we talk about products, we start with principles. Every investment decision we make is guided by a clear and intentional philosophy — one that filters the entire investment universe through a disciplined lens.
This philosophy is grounded in a set of core beliefs: that markets work, diversification reduces risk, costs and taxes matter, and that staying the course beats reacting emotionally. These beliefs underpin our approach and help reduce the likelihood of a poor investment experience.
Here’s how those beliefs translate into the way we protect our clients:
1. No Illiquid or Opaque Investments
We exclude unlisted, hard-to-value, or difficult-to-exit products. If it lacks transparency, it doesn’t make it into your portfolio.
2. Diversification with Purpose
We do not bet big on any one asset class. If infrastructure or property are included, they are limited to a small percentage of the portfolio (typically 5 to 10 percent) and held only via rigorously researched and listed vehicles.
We believe broader global exposure delivers stronger, more reliable outcomes. Diversification reduces risk and expands your opportunity set.
3. Cost Matters
We’re cost-conscious on your behalf. Investment costs compound just like returns, only in the wrong direction. Every dollar saved in fees and taxes stays in your portfolio, working for your future rather than someone else’s. That’s why high-fee products don’t make the cut, no matter how compelling the pitch.
4. Multi-Layered Due Diligence
We don’t outsource judgement. Every investment is reviewed through four lenses:
- Independent institutional research
- Internal Investment Committee oversight
- External consulting support from our employed investment committee partnerContext Capital, who provide additional modelling, investment analysis / research, and technical insight
- Advisor professional judgement & oversight – An advisor determines the appropriateness of investments within the context of the family’s goals, vision and tolerance and capacity for risk.
5. Just Because It’s Available Doesn’t Mean We Use It
We filter the entire investment universe through our own governance process. Most products on the platform don’t pass. That’s by design.
This Is Why Governance Matters
The recent collapse is a clear reminder that not all investment products are created equal. Regulation and access are not the same as protection.
Our clients trust us not just for performance, but for the process behind it. That process is considered, careful, and deliberate. And that’s exactly why it works.
We could offer a clarity call here, if you would like a second opinion on your portfolio.
