BlueRock Investment Philosophy

The BlueRock Investment Philosophy is a set of core principles and beliefs that guide our investment decision making process. The application of our Investment Philosophy is reflected in the way your investment portfolio is constructed and managed.

The BlueRock Investment Philosophy

The BlueRock Investment Philosophy is a set of core principles and beliefs that guide our investment decision making process. The application of our Investment Philosophy is reflected in the way your investment portfolio is constructed and managed.

‍Portfolio Asset Allocation

Different investment assets offer varying risk and return trade-offs. The fundamental concept that underpins asset allocation is diversification, that is, investing across different asset classes with different risk and return characteristics. We believe effective asset allocation is a cornerstone of portfolio risk management and can only occur when it is implemented across a number of levels – across asset classes, assets within each asset class, and through different investment vehicles.

We have a strong, strategic relationship with Morningstar, a global research investment house. Morningstar have invested considerable time and resources into effective risk profiling techniques and asset allocation methodology that we utilise as a starting and ongoing reference point. This research, along with other external macro- economic research, is coupled with specific asset allocation views driven by the BlueRock Investment Committee, particularly those of Craig Ferguson, Director of Antipodean Capital.

An overarching focus on protecting client wealth remains at the heart of our investment philosophy. This involves actively managing exposures across sectors, themes and geographic regions, and the use of cash.

Investment Approach

Historically, investment markets are efficient in the long term but are volatile and therefore inefficient in the short to medium term. We believe that both passive and active management have a place in portfolios to deliver a flexible, proactive, value-added approach over different investment cycles.

We apply a Dynamic Asset Allocation approach to add value to portfolios because prices do diverge from fair value in the shorter to medium term. This approach allows shifts in asset allocations in order to attempt to capture excess returns or avoid excessive risk of low returns. As a result, we may at times move away from our predetermined growth and defensive asset allocations within the various levels of risk. We follow a strict due diligence process and ongoing management process to such deviations.

Overarching our approach to portfolio construction is a focus on cost efficiency, the effective use of technology to efficiently manage client portfolios, and ongoing communication and education for our clients to ensure they remain informed and comfortable that their investments are working for them.

Investment Selection

Our investment selection involves an intensive process that draws on available research and market opinions, which incorporates the use of our own technical analysis to identify entry and exit points.

We may invest in a variety of investment vehicles, such as direct shares, Listed Investment Companies (LICs), Exchange Traded Funds (ETFs), and specialist managed funds.

Investment selection is driven first and foremost by asset allocation targets. For example, whether the Investment Committee has a more positive view on the Australian Share Market vs the broader Global Share Market. Deeper dive asset class considerations such as different share market sectors, geographic regions or market capitalisation (e.g. larger companies vs smaller companies) allow specific asset allocation targets to be set. Once these asset class objectives have been determined, the Investment Committee runs a quantitative (numbers focused) screen over all available investments in that sector to provide a top quartile, target group of investments (based on quality of investment, cost, and capacity to outperform its peer group). The Investment Committee on most occasions will meet then with the Portfolio Manager of each potential investment, to complete a Qualitative review, which is focused on a range of factors such as manager experience, risk management, competitive advantage, etc. This is performed initially and ongoing.

Investment Committee

The BlueRock Investment Committee meets formally, on a monthly basis, to assess the performance and structure of the BlueRock investment options. The objectives of the quarterly BlueRock Investment Committee meetings (as outlined in the Committee’s charter) include:

  • Review action taken following the last committee meeting.
  • Review the performance of investment options vs benchmark.
  • Review the asset allocation of investment options vs benchmark weightings and agreed Strategic Asset Allocation (SAA).
  • Discuss the asset allocation and portfolio composition in light of current and anticipated macroeconomic trends.
  • Review the specific investment performance against benchmarks and portfolio objectives.
  • Propose changes to asset allocation and portfolio composition in light of market movements, anticipated returns, or macroeconomic conditions.
  • Present new investment ideas which have passed minimum investment filtering required to be considered for portfolio inclusion.
  • Evaluate the quality of research obtained and resources utilised to ensure a high standard.


Important information regarding this information


This information is of a general nature. It does not consider your personal objectives, needs or situation. It does not represent legal, tax or personal advice and should not be taken as such. If it has been provided to you with a Statement of Advice (SoA), you should rely on the personal advice in the SoA.

Care has been taken to provide up to date and accurate information relating to the subject area however BR Advice Pty Ltd (ABN 30 612 056 523, AFSL 488655), Blue Rock Private Wealth Pty Ltd (ABN 95 166 927 055, AFSL 452733), Blue Rock Private Wealth (Melb) Pty Ltd (ABN 48 652 202 698, ASIC AFS No. 1298365) and their representatives make no representation as to its accuracy or completeness.

Published: September 2022.

© Copyright 2022.

Liability limited by a scheme approved under Professional Standards Legislation. © BlueRock 2023.

Switch region