Page 5 - FWP Wealth-Adviser-Issue-120 (FWP)

ISSUE 120
SEPTEMBER 2025

Amid global turbulence, Australia’s own economic story offers important

lessons in resilience. The Treasury’s review of the Global Financial

Crisis points out: “Australia’s robust and flexible financial system,

alongside swift policy responses, enabled rapid recovery…”. Australia

was largely shielded from the worst effects of multiple global crises by

its effective institutions, sound regulation, and a willingness to adapt.

Key themes emerging from strategic commentary and Protect, Then Grow: A Modern Wealth
market research include: Management Philosophy
• The likelihood of more equalised returns across major For both philosophical and practical reasons, the princi-
sharemarkets, ending the recent dominance of US equi- ple of “Protect, then Grow” has been embraced as a central
ties. pillar by leading wealth managers. Perpetual summarises
• Portfolio construction must consider new sources of this approach: “Protecting wealth is our first priority; growth
growth—including regions leading in technological inno- follows prudent risk management and quality asset selec-
vation, infrastructure, and the transition to renewable tion”. Providence Wealth reinforces the notion that portfolio
energy. construction must blend risk controls with exposure to
Morgan Stanley notes, “A multi-polar world provides a themes that drive lasting returns.
more diverse set of macro and market drivers, increasing the Key elements of a resilience-oriented strategy include:
need for regional specialisation and robust risk management • Emphasising capital preservation, especially through
frameworks”. For Australian clients and their advisers, this diversification and active asset selection.
means building a mindset—and portfolios—that look far • Accepting that volatility is inherent in multipolar mar-
beyond Wall Street. kets, and that disciplined, long-term plans outperform
reactive approaches.
Resilience Lessons from Australia’s • Focusing on assets and strategies—such as infrastructure,
Own Experience alternatives, and global equities—that are less tied to the
Amid global turbulence, Australia’s own economic story fortunes of any one country or sector.
offers important lessons in resilience. The Treasury’s review The calls for resilience echo not only in professional
of the Global Financial Crisis points out: “Australia’s robust guidance but also in the experiences of investors who navi-
and flexible financial system, alongside swift policy respons- gated Australia’s past crises. As one review of the Australian
es, enabled rapid recovery…”. Australia was largely shielded economy puts it, “Well-diversified asset allocation, based
from the worst effects of multiple global crises by its ef- on risk-tolerance and objectives, remains the foundation for
fective institutions, sound regulation, and a willingness to long-term wealth preservation”.
adapt. Mousina also notes that Australia’s potential to “be a
global leader in critical mineral exports over the long-term” Practical Strategies for Building and
could provide new engines for economic and investment Preserving Wealth in the New Era
stability in a divided global economy. The shift from US exceptionalism to a multipolar world
Several resilience-building themes stand out: calls for strategies that combine legacy planning with new
• Strong banking and regulatory systems help stabilise approaches to portfolio diversification and risk manage-
wealth through periods of global uncertainty. ment.
• Adaptability in policy and industry, particularly toward Pitcher Partners suggests a layered approach to wealth
new export opportunities, creates buffers against exter- preservation: “Implementing robust legacy strategies
nal shocks. ensures stability for future generations, regardless of global
• Prudent fiscal policy, diversification of export industries, change”. Practical tools available to Australian investors and
and high levels of institutional trust have protected Aus- their advisers include:
tralia’s wealth in past downturns. • Trusts, estate planning, and intergenerational wealth

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