Our investment principles
Investment Approach
Our investment approach brings together disciplined research, active portfolio management and broad diversification to help families preserve and grow wealth over time.
What guides our decisions
Investment Philosophy
Forty years in markets has taught us one thing above all, they are not efficient, and taking on risk does not automatically mean you get paid for it. That single insight sits at the heart of everything we do.
Our approach is built to achieve a target return over a full investment cycle, while keeping a tight rein on capital volatility along the way. We are not interested in tracking an index or hugging a benchmark for the sake of it. We invest with conviction, and we are prepared to look different from the crowd when the evidence supports it.
Genuine diversification, not just labels.
Each brings a different risk and a different driver of return to the table, and treating them as genuinely separate building blocks, rather than variations on a theme, is central to how we manage risk across the portfolio.
A view from both altitudes.
We assess opportunities and risks at the macro level, the big picture forces shaping markets, and at the micro level, the merits of an individual investment. Working both ends at once helps us spot risks early and act on opportunities before they become obvious to everyone else.
Research that does the hard yards.
Our internal research team works across the full investment universe to identify and analyse opportunities, backing the investments that earn their place in a portfolio and discounting the ones that do not.
Convictions we are willing to act on.
We form internal outlooks for each asset class, and those views drive how we position our portfolios. Our Investment Committee actively manages asset and manager exposure, and when we hold a conviction, we take definitive action on it rather than sitting on the fence.
The freedom to invest without constraints.
Our portfolios are unconstrained, which means we are free to pursue our highest conviction themes rather than being boxed in by rigid asset allocation rules. That flexibility lets us respond to the market environment as it changes, not as it was when a model portfolio was last set.
A genuine role for non-traditional assets.
Private equity, liquid alternatives, and direct property and infrastructure all play a meaningful role in our portfolios, not as a token allocation, but as a real source of diversification and additional return. We see these asset classes doing much of the heavy lifting when it comes to managing portfolio volatility over the cycle.
Built around you
Portfolio Construction
No two clients have the same goals, time-frame or tolerance for risk, so no two portfolios we build look exactly alike. Every portfolio is specified around the individual client, starting with their attitude to risk, income needs, time horizon and personal circumstances, and built from there to reflect what matters to them.
Tailored to the individual
Every portfolio starts with the client. We consider their attitude to risk, income needs, time horizon, growth objectives and personal circumstances before determining its structure. The result is a portfolio built around the individual, rather than a predetermined model.
A disciplined core
We use a core satellite approach to keep portfolios both tailored and efficient. The core is our actively managed allocation, providing diversified multi-asset exposure with an active overlay reflecting our current convictions across asset classes. It is the portfolio's engine room, underpinned by the same disciplined process for every client.
Satellite customisation
Satellite allocations are layered around the core to reflect each client's circumstances. A client seeking stability may hold more defensive investments. A younger client pursuing growth may hold more equities or venture capital, while a retired client needing income may hold more income-generating investments.
Managed account discretion
Managed account structures allow our Investment Committee to act on its convictions in real time, rebalancing, rotating exposures or responding to changes in outlook without seeking individual approval for every trade. When our view on an asset class or manager changes, we can adjust every affected portfolio immediately, rather than waiting while markets move and opportunities pass.
Ongoing oversight
Every portfolio is actively managed by the Arrow Investment Committee. Nothing sits on autopilot. The committee reviews asset allocation, manager selection and positioning against our internal outlooks, adjusting portfolios as market conditions and opportunities evolve.
The experts behind the portfolio
The Arrow Investment Committee (AIC) oversees the governance and management of Arrow Private Wealth's approved investments, which is the full suite of investment solutions available to our advisers. The committee's job is to make sure every portfolio lives up to Arrow’s standards for performance, asset allocation and product selection, so clients get an offering that is genuinely robust and genuinely diversified, not just on paper.
Arrow Investment Committee
Brad Matthews
AIC Chair & External Consultant
Brad helps shape portfolio solutions consistent with our investment philosophy. He spent 12 years in investment research at AMP, including as head of research and head of investment strategy for AMP financial planning licensees.
Peter Leggett
AIC Member & Chief Investment Officer
Peter has been on the AIC since it was established and brings extensive experience across advisory roles at several financial organisations, with over 35 years in financial services and markets.
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Ryan Synnot
AIC Member
Ryan provides ongoing investment research to the AIC and is responsible for the day-to-day running of portfolio management and investment committee obligations, including manager meetings, trading, investment research and reporting. Ryan holds the Chartered Financial Analyst (CFA) designation.
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Michael Houghton
AIC Member & External Consultant
Michael is a senior finance and investment executive with more than 25 years' experience in local and international private wealth management, spanning wealth management, asset consulting, investment advice and portfolio construction. He has previously held senior roles at Macquarie Bank, Citibank Switzerland, JBWere, ANZ and Westpac Private Banks.
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A clearer path begins with a conversation
Whether you are considering a significant decision, reviewing your current arrangements or simply want greater clarity, we would be pleased to hear from you.
(03) 8696 4133