Liabilities Driven Investment

Liabilities-driven investing

For families with complexity, your needs are varied. At Stephan Independent Advisory we understand that your investment strategy requires a holistic approach, one that reflects the uniqueness of your family’s specific requirements.

Liabilities-driven investing is a framework that assists in devising an asset allocation for your capital that’s based on your family’s unique needs and the timeframes for meeting each specific financial goal.

We have created proprietary software based upon our unique portfolio construction methods that enables us to create a bespoke plan for your investment goals. This software, coupled with our acumen and experience, allows us to devise a tailored portfolio that takes the following considerations into account.

How liabilities-driven investing works

Needs assessment
  • We work with you to define your priorities and financial objectives, mapping them out based on their individual timeframes.
  • We organise these into categories of essential, important, and aspirational objectives.
  • This allows us to determine the priority, appropriate risk level, and liquidity requirements for each goal.
Capital demarcation
  • We calculate the amount of capital you need to fund each specific priority, and ensure you have the available resources to meet these goals.
  • We then calculate the funds that need to be invested today in order to reach this future goal.
Asset class selection
  • The timeframe of each goal determines the asset class we select for your investments.
  • We match each objective with return factors, chosen for their capacity to either protect and/or fund each specific objective whilst ensuring they provide the liquidity necessary to access capital where an objective timeframe is short term in nature.
Portfolio feasibility assessment
  • We then review your investment strategy to ensure its suitability against your appetite for risk within your long-term plan.
  • Back-testing your portfolio against historic situations, and even crises, allows us to test it against theoretical crises and stressful market conditions .
  • Our aim is to confirm that we have created a robust portfolio that meets your objectives, while still navigating volatility.


This is more than just investment advice

A liabilities-driven investment framework creates a bespoke asset allocation that’s tailored to suit the unique needs of your family, and is an effective way to mitigate the uncertainty you may feel in achieving your future financial goals.

This approach means that you have the right amount of capital in the right assets, enabling you to achieve your objectives without any compromise.

Liabilities-driven investing creates a roadmap for your future. We ensure you take the right roads to get there on time, and safely.

  • Enjoy the fruits of working life Joe & James were able to provide me with the impetus to take the next step into retirement which could have been delayed without quality financial advice. Dr. Kevin Adams Self Funded Retiree
  • Professional practice to be admired Joe & James' professional practice is to be admired. They are always there for his clients when needed. They freely pass on their expert knowledge without hard product selling techniques. Dr. Elspeth Mckay Associate Professor
  • Personal advice for complex lives Stephan Independent Advisory took the time to understand our situation & tailor their advice & solutions to our specific needs which, being a business owner, can be quite complex. Paul Marsh - Principal P2 Group - Business Owner
  • Family centered advice We have moved our investments from being a private client with a major bank to Stephan Independent Advisory in 2018. Since this move, we have been surprised at the depth of understanding encountered from Joe and James about our future plans and their ability to comprehend exactly what we wish to achieve. Mr Graham and Mrs Judith McKnight Self Funded Retirees
  • Values aligning with our own Clear, timely and direct responses in all areas of communications are outstanding. Meetings are planned and run efficiently to deliver on all our expectations. The firm’s values align to our own so that trust is readily established. Mr John and Dr Kim Watty Self Funded Retirees

It’s Never About Money

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Stephan Independent Advisory
Private Wealth Management
Suite 506, 1 Princess Street, Kew VIC 3101