Approach to Investing

At Heritage Private Wealth Pty Ltd (HPW) our advisers have extensive experience in the financial advisory industry.  Mark Jennings has been a financial adviser for over 15 years and has previously served as a member of the National Executive Committee of a large financial advice business, providing key input & advice on investments to the Board.


Over our time in the industry we have observed and determined which approaches to investing have delivered sound outcomes and those which have not.  Our conclusion is that what we call “plain vanilla” investing is the one that is most likely to produce “after-tax, after-fees” returns that meet clients risk and return objectives.


Our approach to portfolio construction has been shaped by the following observations:

  • “Active” fund managers aim to beat the market average.
  • Active managers charge higher fees than so called “passive” or “index” managers.
  • Most active managers in Australia don't beat the market average after fees over a 10 year time frame.
  • “Passive” or “Index” managers don't aim to beat the market average… they only seek to match the market average.
  • Passive/Index managers charge lower fees than active managers.
  • Most permanent direct share losses are attributable to small, speculative stocks.
  • Most permanent fund losses are attributable to complex exotic investments spruiking high capital growth returns or promises of high income returns.


Therefore, when constructing our clients portfolios we believe that:

  • A blend of both passive and active managers that matches your risk and return profile should be selected.
  • There is a role for including some direct shares in a portfolio, but they should only be selected from the top stocks listed on the ASX.
  • There is no role in portfolios for exotic investments or those that have a high risk of failure.  These include some hedge funds, mortgage funds, mezzanine debt funds, unlisted property trusts and funds that speculate with clients’ money.


Be fearful when others are greedy. Be greedy when others are fearful.

- Warren Buffett



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Heritage Private Wealth Pty Ltd | ACN 600 874 673 | AFSL No. 468749