Investment Committee

Each portfolio has its own investment committee that has the responsibility for the operation of the portfolio.

 Each committee is governed and guided by a policy and framework. These documents outline the current view of the economic environment,

 The purpose of our approach is for a number of reasons;

  • To establish and maintain a disciplined approach to how we operate the portfolio and make decisions

  • To minimise and ideally eliminate emotion from our decision making

  • To develop consistency in our decision making

  • To retain our focus on our objectives for each portfolio and avoid distraction from those events and circumstances that we cannot control

We begin with what is known as a strategic asset allocation (SAA) for each portfolio. This simply defines our broad asset allocation. It starts with the percentage in growth vs defensive assets and then work through the allocation to each individual asset class such the amount Australian shares vs international. Then we move deeper to further diversify by allocating to sectors within these classes such as small companies and emerging markets.

 
 

Our research process

 

 

At Clearwater Portfolio Management we take the research role very seriously and invest strongly in this area. We have a number of layers of research, all designed to continually filter our current and prospective holdings. This process includes:

  1. Operational due diligence. We conduct this before engaging a new manager and then periodically and if their is a significant change to the manager. We send a detailed and demanding questionnaire to the manager. We want to understand the manager as an organisation first. We are trying determine if they are stable, reliable, have any legal claims against them, are running a successful business (we don’t want them failing) and have robust systems and processes in place.

    Additionally, we want to ensure that they are a good fit with us and our approach. In an industry that guilty of many excesses, we like to see qualities such as humility, respect and understanding of who is the end investor.

  2. Investment due diligence. This is where we get into the detail about the manager and how they operate their fund. Their performance and risk flows through to our portfolio so we need to understand this. We also want to know how they make and then implement their investment decisions. This tells us whether their process is sufficiently robust to survive the inevitable challenges that are faced in investing.

    We want evidence that follow their stated process and that they operate in a disciplined manner.

    We also meeting directly with the managers we use. These meetings are part of the initial appointment process and then at six monthly intervals. We are committed to keeping in contact and on top of the managers we use. A detailed document is used initially and at least annually. The other meeting each year will take the format of a combination of a Q & A from nominated committee members and a presentation from the manager.

    Where we feel the need we will request additional meetings with managers.

  3. Approval and recommendations. After the process is completed for either initial or ongoing approval, the relevant Committee Members will separately document their notes and recommendations for the Investment Committee. This is done separately to avoid the weakness of a discussion that simply leads to a consensus.

  4. Research from Lonsec. We have engaged Lonsec Research who are Australia’s largest investment product ratings and research team. Their documented research plus input at the meeting from Michael Elsworth the Head of Research at Lonsec Research, provides another opinion and layer of research.

  5. We then have overall discussion amongst the committee.

  6. Finally a recommendation is made and a voting decision is undertaken.

  7. Assuming all goes well, we then implement and start the monitoring process.


Whilst this is well structured and flows nicely, the meeting discussions can often involve disagreement. All views and alternate views are encouraged with the aim of leading to better outcomes. 

Minutes are recorded and immediately after the meeting Simone and Gary implement any decisions.

All committee members declare holdings and interests that may lead to a conflict and we have no vested interests with any managers. 

 

 
 

DMG Diversified Portfolio Committee Members

 

 
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Gary Lucas | Chairman of the Investment Committee and Chief Executive Officer

Gary has been working in the financial services since 1981, initially as an Accountant then as a Financial Advisor. In 1996 Gary successfully applied for a Financial Planning licence for his company and since then has developed and managed financial services businesses including Financial Planning and Accounting. In addition to his role with the portfolio, he operates Gary Lucas Financial Advice Pty Ltd, providing tailored financial and business advice.

He instigated the establishment of Clearwater Portfolio Management in 2013 and remains strongly committed to adding value for investors. He also Chairs the CPM Compliance Committee. He Chairs both Investment committees

 
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Dr Bart Dowling | Portfolio Manager

Bart has been with the DMG Diversified Portfolio since its inception in 2013 and currently is a committee member for that portfolio. He is an Economist with decades of experience in the largest financial markets of the world, including London and Wall Street. Bart has extensive experience on Wall Street & the City of London as an Asset Allocator, Financial Engineer, Fixed Income & FX  Strategist and Economist. He is author of the book Evolutionary Finance and has been a Research Associate at the Centre for Financial Research at the University of Cambridge. He holds a Masters in Mathematical Finance (Oxford), a PhD in Economics (Melbourne) and First Class Honours in Economics (Newcastle).  Despite this high level experience and knowledge, upon meeting with Bart, investors quickly become very comfortable with him and his approach. As you can see we are privileged to have someone of Bart’s calibre working for our portfolio.

 
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Michael Elsworth | Executive Manager at Lonsec Research Pty Ltd

Michael joined Lonsec in 2006 as part of the research team and at various times had overall responsibility for sectors including structured and exchange traded products, fixed income and alternatives. He has since moved to the Investment Consulting team as Executive Manager and provides advice and input into model portfolio construction and asset allocation decisions. Prior to Lonsec, Michael worked at Westpac in both retail and institutional financial markets, and structured product development roles where he was responsible for sourcing, repackaging and marketing complex financial markets products. Michael spent three years in Hong Kong and two years in New York where he acted as Westpac’s senior financial markets representative, helping expand the bank’s reach in structured credit products.

Michael was appointed a Committee Member of the DMG Diversified Portfolio in 2019.

 
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Charles Bagguley | Financial Adviser at DMG Financial Planning Pty Ltd 

Charles in a Certified Financial Planner, has a Bachelor of Business (Fin.Planning) and has over 12 years of Financail Planning expereince. Previoulsy Charles was a partner of a Melbourne based Financial Planning practise, where he worked for over 10 years. Charles is a Representative of DMG Financial Planning, providing full financial advice as well as having specialist skills in residential aged care and assists individuals and families with the financial decisions, processes and paperwork involved in transitioning to permanent aged care. Charles is an Accredited Aged Care Professional through Aged Care Steps and is a registered tax (financial) adviser through the Tax Practitioners Board. 

Charles was appointed a Committee Member of the DMG Diversified Portfolio in 2019.

 
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Mathew Johns | Managing Director DMG Financial Pty Ltd.

Mat joined the firm in 1996 and has since obtained his Bachelor of Business through Monash University as well as becoming a Chartered Accountant and acquiring his Public Practising Certificate. In 2005, Mat became a shareholder for the firm. In November 2014 Mat was appointed the Managing Director of the DMG businesses and as well as this role he continues to service his clients.

Mat represents the broader DMG group on the DMGDP Investment Committee and also sits on the CPM Compliance Committee.

 


 

Clearwater Dynamic Portfolio Committee Members

 
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Gary Lucas | Chairman of the Investment Committee and Chief Executive Officer

Gary has been working in the financial services since 1981, initially as an Accountant then as a Financial Advisor. In 1996 Gary successfully applied for a Financial Planning licence for his company and since then has developed and managed financial services businesses including Financial Planning and Accounting. In addition to his role with the portfolio, he operates Gary Lucas Financial Advice Pty Ltd, providing tailored financial and business advice.

He instigated the establishment of Clearwater Portfolio Management in 2013 and remains strongly committed to adding value for investors. He also Chairs the CPM Compliance Committee. He Chairs both Investment committees

 
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Stephanie Williamson | Portfolio Manager 

Stephanie has worked in financial services for almost two decades having commenced at an insurance company in 1999. Stephanie joined Select Asset Management in 2004 spending time in finance and operational roles before joining the investment team in 2006. It was in this team where she gained experience across all global financial markets, asset management and multi-strategy investment management. 

With her operational expertise she held major responsibilities in trading and investment implementation and continuously worked alongside IT to create improved reporting requirements and internal processes. She also built investment models across the Closed End Fund universe, a preferred investment vehicle at Select. As a Senior Investment Analyst her role enabled her to take part in investment strategy and manager research, largely across Equities and Alternative investment asset classes; as well as assisting in the construction of bespoke portfolio solutions for clients. 

Select was sold to OneVue in 2014 where she stayed employed until early 2018. Stephanie has since become a Consultant to independent financial planners and boutique asset managers.

Stephanie has a Diploma of Business Management and a Bachelor of Business majoring in Finance.

Stephanie was appointed a Committee Member of the Clearwater Dynamic Portfolio in May 2019.

 
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Charles Bagguley | Financial Adviser at DMG Financial Planning Pty Ltd 

Charles in a Certified Financial Planner, has a Bachelor of Business (Fin.Planning) and has over 12 years of Financial Planning expereince. Previoulsy Charles was a partner of a Melbourne based Financial Planning practise, where he worked for over 10 years. Charles is a Representative of DMG Financial Planning, providing full financial advice as well as having specialist skills in residential aged care and assists individuals and families with the financial decisions, processes and paperwork involved in transitioning to permanent aged care. Charles is an Accredited Aged Care Professional through Aged Care Steps and is a registered tax (financial) adviser through the Tax Practitioners Board. 

Charles was appointed a Committee Member of the Clearwater Dynamic Portfolio on establishment in January 2019. 

 
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Ben Lancaster | Financial Planner, Director, DMG Financial Planning Pty Ltd.

Ben started working in the industry with Melbourne based firms in 1995 then joining DMG Financial Planning in 1999 as a Financial Planner.  He has a Bachelor of Commerce, Diploma of Financial Planning, CERTIFIED FINANCIAL PLANNER™ and  Chartered Tax Advisor. While being based in the Sale office, Ben also travels to Melbourne on a regular basis to service clients. On the Committee Ben represents the DMG Financial Planning business and clients and helps ensure that the Portfolio remains appropriate for clients.

 
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Wayne Dowd | Director & Accountant at DMG Financial Pty Ltd: 

Wayne has had over 30 years’ experience in the financial industry and is a Director of DMG Financial.

 Wayne has had extensive experience advising small business clients with regards to advisory and taxation matters relating to their businesses and is frequently servicing these client’s needs predominantly between Melbourne and Gippsland. Wayne is a specialist advisor in the Self-Managed Superannuation Fund sector and works closely with clients regarding the administration of their Fund including tax, pension and other compliance matters. 

Having completed a Bachelor of Business – major in Accounting, sub major in Economics & Law, Wayne is also a Certified Practicing Accountant (CPA) with a Public Practising Certificate and an SMSF Specialist Advisor accredited with SMSF Professionals Association of Australia (SPAA).

Wayne was appointed a Committee Member of the Clearwater Dynamic Portfolio on establishment in January 2019. Wayne represents the DMG Financial business and clients of DMG.

 
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Michael Roberts | Financial Adviser at DMG Financial Planning Pty Ltd (Non-voting Committee member)

Michael started working in the industry in Melbourne based firms in 2008. He has Bachelor of Commerce and Diploma of Financial Planning. Michael is an adviser with DMG Financial Planning and helps ensure that the portfolio remains appropriate for clients. 

Michael was appointed as a Non-voting Committee Member of the Clearwater Dynamic Portfolio on establishment in January 2019.

 
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Amy Fleming | Financial Adviser at DMG Financial Planning Pty Ltd (Non-voting Committee member).

Amy joined DMG Financial Planning in February 2015, bringing with her knowledge from previous roles in the Financial Industry. Amy is now a Financial Planner and Representative of DMG Financial Planning.

Her love of finances started with cash flow with a passion for cash flow coaching. Amy enjoys helping clients manage their everyday expenses so that they can achieve their aspirations. 

Amy was appointed as a Non-voting Committee Member of the Clearwater Dynamic Portfolio on establishment in January 2019. Amy has completed Diploma of Financial Planning in February 2015 and Advanced Diploma of Financial Planning in May 2018 through Kaplan Professional.

 
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Simone Belcher | Manager at Clearwater Portfolio Management Pty Ltd (Non-voting Committee Member)

Simone has been working in the Financial Industry since 2012. Simone initially worked with clients in Financial Planning up until 2016. 

Simone then joined Gary as a Manager in Clearwater Portfolio Management, together they oversee the management of the Portfolio and coordinate all of the parties that are needed to make the portfolio successful for investors.  

Her qualifications include a Certificate III and IV in Business Administration and a Diploma in Business.  

Simone was appointed as a non-voting Committee Member of the Clearwater Dynamic Portfolio on establishment in January 2019.

 
 

Clearwater Portfolio Management

 
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