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What is the CARE Investment Strategy?

Fundamental to the CARE Investment Philosophy is what is known as the DALBAR Study. The original DALBAR Study was conducted between 1980 to 2000 in the USA on the top 500 US listed companies. The study found that the average return over that 20 year time period for the 500 companies was a 12% return.

Do you know what the return was for investors over the same period? It was around 4% over the same 20 year period! That’s a poor average investor return. The number one reason for the 8% difference was bad investor behaviour.

See the DALBAR emotional rollercoaster schematic below.

CARE Schematic

The CARE Investment Philosophy believes that 50% of your returns are made up by your investment behaviour. 45% of your return is to do with asset allocation and the remaining 5% is timing and selection. The traditional investor would contest this and say the investor return equation is 90% asset allocation and 10% timing and selection and has nothing to do with investor behaviour.

However, based upon the DALBAR Study we do know that 50% of returns are based on investor behaviour, which has a critical impact on your returns. See the impact of investor behaviour in the graph pictured.

The DALBAR Study found that the average holding period by investors who said they were investing for the long term was just over 3 years! Those investors made bad short term decisions based upon events happening in the world at the time. That’s why the CARE Investment Philosophy was designed – to stop investors from blowing up money, to prevent bad investment decisions being made in down markets and to stop the dangerous DALBAR cycle that destroys the wealth our clients have worked so hard to create. Are you interested in an excellent investment philosophy that protects your investment future? Ask your GPS Wealth Adviser for more information on CARE Investment Philosophy.



The “C” in CARE stands for “Core” investments. The Core of a CARE portfolio is made up of a range of Exchange Traded Funds (commonly called ETF’s) and fixed interest fund managers that are single sector, single manager securities and funds that are constructed to be invested according to your risk profile. Your Core investments, together with your risk profile are a strategic mix of Cash, Fixed Interest, Property, Australian shares and bonds, and overseas shares and bonds.



The “A” in CARE stands for “Active” investments. This is a tactical blend of ETF investments which includes Australian Shares, Global Shares, Emerging Market shares, Global Small Companies and Gold. The Active component within the portfolio is designed to take advantage of long term market themes and attempt to smooth your total portfolio return by systematically adjusting allocation to undervalued or overvalued asset classes.


RESERVES (Used when income is required from your portfolio)

The “R” in CARE stands for “Reserves”. This is a very important part of the overall investment strategy that looks to benefit you in two ways. The first is that it provides a steady income stream with a very low risk to capital. The second benefit is that we recognise that volatility and capital loss have a probability of occurring in the short term. By allowing enough time for investment in shares and property to grow, the risk of you having to sell assets in times where markets are declining is mitigated. Reserves are an important component of CARE where we set aside up to four years of any income requirements, especially for retirees, because in volatile markets if you don’t have enough Reserves you may have to sell assets to provide sufficient income, or worse: you may panic and sell. The Reserve is a good buffer for peace of mind and to assist you with the cash flow you need during these investment downturns.



Lastly, the ”E” in CARE stands for “Enhanced”. This portfolio is made up of Australian and overseas shares, held either directly or through managed funds or ETF’s. Listed Australian shares will predominantly be selected from the largest 100 Companies on the Australian Securities Exchange (ASX). These companies generally produce good dividends for our clients. Investors also have the option of investing in a portfolio of international shares managed by a specialist manager or via an exchange traded fund (ETF). The Enhanced looks to deliver above market returns or “Alpha” as it is called in investment circles.

General Advice Warning

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.


Emmanuel Calligeris
Emmanuel Calligeris
  • BEc MBus (Finance)
  • Emmanuel is Chairman of the CARE Investment Committee. Emmanuel holds a degree in economics and previously had 20 years’ experience as Chief Investment Officer for OnePath Investments (the investment arm of ANZ Bank) and was responsible for $13 Billion of funds under management.
Grahame Evans
Grahame Evans
  • Grahame is the Risk and Compliance member of the CARE Investment Committee. Grahame brings over 35 years of financial service industry experience.
Dr Mark Brimble
Dr Mark Brimble
  • BCom(Hons) PhD CPA FFin
  • Mark is an independent member of the CARE Investment Committee. Mark holds a doctorate in capital markets and is keenly interested in investor behaviour
Rob McGregor
Rob McGregor
  • SIA (Aff) ADFP
  • Rob was a founder of GPS Wealth, developed the CARE Investment Philosophy over the last 15 years and successfully managed $100m in clients’ funds during the GFC.

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