31 Jan What are Guided Portfolios?

Guided Portfolios are an investment in direct shares, under the guidance of an external equities specialist. Think of a managed fund or exchange-traded fund (ETF), but you have direct ownership, transparency, and choice over the underlying investments. Justifications for any changes recommended are provided to you, and then your approval is required before these changes can be implemented.

Leo Wealth, through it’s licensee HNW Planning (AFSL 225216), is able to offer a selection of Guided Portfolios with underlying assets available direct (on HIN) through the ASX. With low brokerage, and low portfolio management fees, these portfolios* can provide suitable exposure to the Australian securities market.

So what are three main benefits of having a Guided Portfolio work for you?

• Access to a cost-efficient method to own and update direct shares
• The option to tailor your investments in line with your ethical preferences**
• Access to share purchase plans, entitlement offers, dividend reinvestment plans and voting rights

Below are the 5 Guided Portfolios currently available:

Australian Equity

Our Australian Equity portfolio consists of 15-20 shares. This portfolio is tailored to clients aiming to grow their investments. The holdings are chosen to generate returns through a combination of capital appreciation and dividend income.

Australian Equity (Concentrated)

Our Australian Equity portfolio consists of 10-15 shares. This portfolio is tailored to clients seeking higher conviction, whose aim is to grow their investments or have limited resources. The holdings are chosen to generate returns through a combination of capital appreciation and dividend income.

Australian Equity – Income Focused

Our Australian Equity Income Focused portfolio consists of 15-30 shares. This portfolio is specifically tailored to low marginal tax rate clients such as retirees who are aiming to maintain their current investment value and produce income. The investment strategy is focused on companies that maintain and grow income or provide franking credits to its shareholders.

Australian Equity – Income Focused (Concentrated)

Our Australian Equity Income Focused portfolio consists of 10-15 shares. This portfolio is specifically tailored to low marginal tax rate clients such as retirees who are seeking higher conviction, whose aim is to maintain their current investment value whilst producing income or have limited resources. The investment strategy is focused on companies that maintain and grow income or provide franking credits to its shareholders.

High Conviction Small Resources

The High-Conviction Small Resources Guided Portfolio focuses exclusively on the resources sector emphasising unrealised value and the potential of selected companies to gain value. It does not aim to provide diversification, generate income, or meet any specific benchmark. Investors should expect significant volatility, with frequent fluctuations in share prices that exceed those of regular Australian top 200 shares, making it an investment option suitable for clients comfortable with higher risks. Shares are selected based on their potential to increase in value with trading activity kept to a minimum.

Each portfolio is suitable for different types of clients, depending on their financial capacity, risk profile, and stage of their lives. HNW Planning’s Investment Committee conducts regular reviews to assess the portfolio’s performance and any necessary adjustments. External specialists also provide regular updates on individual stock, and overall portfolio performance; with commentary justifying buy/sell/hold positions. These can be found here.

Come and speak to Leo Wealth today to find out if a Guided Portfolio may be a part of the next step in your investment future!

*It’s important to note that Guided Portfolios are a strategy rather than a product, and are only recommended where appropriate.
**You can elect to exclude specific companies that are not aligned with your ethics, or that you may have a large holding of elsewhere and do not wish to over-expose yourself to.