Welcome to XLPlanners

Care Investment Portfolio

Investing together with other like-minded individuals.There are a list of services we provide for CARE Coterie members.

  • Quarterly Care Coterie economic updates with Emmanuel Calligeris
  • Annual Care Coterie lunch briefing – meet the investment committee members
  • Investing with CARE seminars
  • Personal invitation to Care Coterie half yearly updates for clients with +$1m invested in CARE

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 behavior. See the Dalbar emotional rollercoaster picture below.

The CARE philosophy believes that 50% of your returns are made up by your investment behavior. 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 behavior. However, based upon the DALBAR study we do know that 50% of returns are based on investor behavior, which has a critical impact on your returns.

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

Core Investments

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 multi-sector, multimanager securities and funds that are invested according to your risk profile. Your Core investments, together with your risk profile are a strategic mix of Australian shares, bonds, overseas shares and bonds including property and other assets.

Active Investments

The “A” in CARE stands for “Active” investments. This is a tactical blend of ETF investments which includes Australian Shares, Global Shares, Emerging Markets, Global Small companies and gold. The active component within the portfolio is designed to smooth out the volatility of each sector and provide you with a nice consistent return overall.


The “R” in CARE stands for “Reserves” including Risk Management. The reserves component offers liquidity to the portfolio which provides a necessary balance overall. The care process manages two key risks, the first by insuring assets are allocated according to your risk profile and secondly by providing cash reserves so that the risk of you having to sell assets in market periods that are declining is mitigated. Cash reserves are an important component of CARE where we set aside 4 years of reserves, especially for retirees, because as markets drop, if you don’t have enough reserves you may panic and sell so the cash reserve is a good buffer for peace of mind and to assist you with the cash flow you need during these investment market downturns.

Enhanced Returns

Finally we come to “E” in CARE which stands for “Enhanced Returns” portfolio, this is simply made up of single listed Australian shares also known as the blue chip companies (Telstra, big four banks, large mining companies) which are fairly stable and produce good dividends for our clients. Investors also have the option of investing in an international share portfolio managed by a specialist manager. The Enhanced returns portfolio is sometimes also referred to as the “Alpha” return portfolio because at different times during market cycles, when blue chip companies perform extremely well they exceed average market returns.