For most investors the risks of owning individual shares or other assets and the difficulty of obtaining a wide enough spread of different markets, sectors and companies make it preferable to invest via a collective investment. This means individuals participate in a large portfolio of assets with many other investors. Each has a direct investment in the scheme which holds and manages the chosen assets. Your capital is therefore ‘pooled’ with that of other investors.
Assessing risk
We take time to understand and agree your risk profile. We use highly sophisticated psychometric risk profiling software from FinaMetrica Limited, a leading International risk analysis company.
FinaMetrica Limited derived its process from research carried out by the University of New South Wales. Based on your answers to 25 questions, we evaluate the level of your aversion to risk and risk capacity to derive an appropriate asset allocation strategy. We want you to capture the returns that are there for the taking, but we also want you to be able to sleep at night.
Find out more about FinaMetrica's system.
Index and passive asset class funds
Operii’s investment philosophy is based on Modern Portfolio Theory (MPT) and its subsequent evolution. MPT is derived from rigorous and ongoing research by the world's leading academic financial economists. We are convinced that this approach is the right choice for investors. Implementing our disciplined long-term investment strategy is not only sensible and logical, but it is cost-effective to develop and maintain, making such an approach in your best interests.
Consistent asset allocation
An investor can only accomplish effective asset allocation if investment funds stay within their target asset classes. Unfortunately, most retail fund managers invest more (overweight) in particular parts of the market. This means the risk you take is outside of your control. Institutional asset classes must stay fully invested in the specific asset class they represent.
Dimensional Fund Advisors Inc. (DFA) is our principal fund manager
Manager selection is based on rigorous academic research and the delivery of the performance of capital markets, consistent portfolio structure and returns within their asset class in a cost-effective and tax-efficient manner. Dimensional Fund Advisors Inc. (DFA) is a respected world leader in structuring investment portfolios for institutional accounts including corporations, pension and charitable organisations, unions and government entities. To maintain quality, its no-load funds are not available to the general public, retail brokers or most other investment advisers. However, through Operii you can gain access to these institutional funds.