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Up1
Hi team!
I’m after a little feedback on satellites.
For years, my favourite type of Core + Satellite (excl. things like property and private businesses) is an ETF core (maybe with some blue chip shares like SOL or Wesfarmers) + satellites filled with super-high quality growth stocks or small cap funds.
In chatting to dozens of Rask’s investors ahead of the launch of Rask Invest in the next couple of weeks, it’s become clear that our community may want us to add some Satellite assets to their Rask Invest account sooner rather than later.
At the moment (or when we launch in a few weeks), investors will only be able to choose 1/3 core portfolios:
- Terra (balanced passive income)
- Martian (growth)
- Jupiter (high growth).
However, one path I can see ahead for Rask Invest is:
1 x ETF core (e.g. Terra, an SMSF or retiree using our regular withdrawal plan)
2-4 ‘Satellite’ exposure (for the more enterprising)
These Satellites could probably be anything you can imagine: our carefully selected 10-stock portfolio of individual blue chip ASX stocks (e.g. our best franking credit-paying Aussie shares to juice after-tax income), a basket of ETFs (e.g. healthcare exposure), a handful of active and passive ETFs targeting a theme (e.g. our best exposures for an “AI Satellite”), our top active funds in Asia (e.g. Emerging Markets or Asia), etc.
Bottom line, everything would still be held in your name (under a secure HIN model) but it would be more ‘flexible’ and allow everyone to take a view, if they want to do so under the proviso that our team is constantly researching those Satellites, investing sensibly for the ultra-long-run, etc.
I’m curious how everyone approaches this currently and if you could start over, what would you Core + Satellite look like?
Thanks in advance!
Owen
Up0Hi Owen,
I was trying to figure out a way to make this manageable in Pearler using Jupiter + some satellites.
My idea is to multiply the Jupiter allocations by the amount I wished to have in the Core, and manage it that way. It’s probably best served by an example – see screenshot attached.
If you could find a way where a customer could do this simply themselves (eg picking whether their Satellite is 5, 10, 15 or 20% of their total portfolio, then multiply the Terra/Martian/Jupiter allocation by the inverse of that it should theoretically be easy to manage. Then, all we’d need to do is pick that Satellite allocation, then pick the stocks/ETFs in the Satellite.
Up0DerekB, that is great mate. Thank you!
This is exactly what I’m talking about. I believe the best outcome for our community will be a combination of a ‘please do it for me… but also I’d like to do that bit’. This way, we can all scratch the stock/theme picking itch (and learn investing as we go), knowing that the Core is professionally managed, contained and maintained.
I spoke to Pearler years ago about making this type of feature available – effectively just letting customers see ‘two different portfolios’ — even though they’re held on the same account/HIN. It’s just a visualisation thing where customers would tick a box to say ‘this is a Core holding’ or ‘Add to Satellite’ style thing. It’ll probably come in time, particularly as we (Rask) start to work much more closer with Pearler on Rask Invest and Rask Core (watch this space… đ).
Owen
Up1I agree; having two separate accounts in one platform makes more sense. I just need to top up the core account based on Jupiter % allocation without additional math or a spreadsheet.
Then, I would have a Satellite account to buy shares / ETFs to my liking.
Having one interface to track 2 accounts as one portfolio would be awesome!
Up0Hey Owen,
This is a super interesting and good problem to solve. I was trying to think about how best to provide a valuable answer, as my thoughts were multi-faceted. Let’s see how I go…
As a Core member, I’ve looked at picking 1 of the 3 core options based on my risk profile, growth aspirations and, most importantly, time horizon. The only one of these that aligns with how I pick satellite’s is the growth aspiration. In other words, I might pick a satellite to improve my (financial) growth over a shorter or longer time period. However, the total amount I invest in my satellites is a small percentage in comparison to my core – I try to keep it no more than 10% – but its about 20% atm (whoops).
So, I like DerekB’s suggestion of using multipliers/percentages. If you go down this pathway, there is even the option of calibrating percentages for individual satellites (e.g. one might represent 1% of portfolio, the other 9%).
In essence, it would be awesome to have some kind of option like:
CORE – [Portfolio Percentage (%)] – Manage for me (auto) | self-managed
Add Satellite Option (select from your suggested list) – [Portfolio Percentage (%)] – Manage for me (auto) | self-managed
+ Add Un-managed Satellite Option (not sure you want to go down that pathway!)
This way, it might avoid multiple accounts, while still maintaining a single dashboard for the portfolio.
Just my $0.02.
Up0Agree with the comments so far except for where the visualisation should occur. Over the years I have tried splitting out the approach to Core/Satellite using different HINs and/or brokers but in the end found the best approach for me is keeping the broker end simple and restricted to their primary function ‘broking’. I leave the visualisation and tracking to a portfolio tracker, navexa in my case. I have always found that viewing your portfolio inside a broker account leaves me wanting to know more and hence switched to a spreasheet (in the ealry days), then several other programs before finally settling on Navexa since 2020. These days I only login to my broker to place orders (commsec still doesn’t have automation) and don’t login otherwise
Up0Gday,
Its great that you’ll be offering Satellite options in the future.
Based on my own experience of multiple (too many!) holdings I think the Core and Satellite need to be visualised as separate portfolios as they could potentially have different goals and amounts of capital allocated. e.g. The Core might start with 100K, $2000 a month DCA top-up plan and have a growth target of CPI + %. The satellite might start with $ 20K and have a different goal e.g. income yield 6% – with Y generated being reinvested into satellite/ transferred to core/ withdrawn to spend on holidays! Or it might aim for growth rate > 10% with re-investment into satellite or transfer to Core.
Occasionally would need to look at Total Invested capital-in case Satellite does exceptionally well and consider if rebalancing needed or not.
I asked Pearler to offer additional portfolios sometime ago, but they don’t seem to have progressed on this. So agree with Vince P that a portfolio tracker such as Navexa or Sharesight is the best way where you can see the individual portfolios or group them all together.
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