Five tips for your new financial year investment portfolio review

Philip Ryan

Trilogy Funds

The past financial year was unlike any other.

As we continued managing the impacts from COVID-19, we saw many economic changes that may have significantly affected your personal financial situation and the value of your investments.

 As we enter this new financial year, it’s a great time to review your investment portfolio.

Read on as we share our top five tips for the start of a new financial year investment portfolio review.

1. Reflect on your personal financial situation

Your portfolio review should always begin by gaining a clear understanding of your current situation and financial goals.

Consider how your personal circumstances and financial position changed in the past financial year. Did your employment status change? Did you decide to purchase property? Did you withdraw your cash, but no longer need as much cash-at-call?

With all the financial changes that have occurred over the past year, what worked for you in July 2020 may no longer reflect, or serve, your current needs.

2. Review your financial goals

Next, it’s time to review your financial goals. Ask yourself: what are you looking to gain from your investment portfolio?

Are you looking to earn a regular income, a way to grow your savings, growth over the long term, a low-risk investment, or the ability to access your cash quickly?

If your financial situation and goals have changed, so too should your investment strategy and asset allocation.

3. Assess your investment strategy and asset allocation

Once you’ve set your financial goals, check if your current investment strategy and asset allocation are on track to help you reach those goals. They should also align with your tolerance for risk and investing timeframes.

If you are looking to generate regular income but find yourself with a large allocation of more volatile assets such as shares in your portfolio, this asset allocation may no longer be appropriate for you.

Alternatively, if you’re looking to achieve high growth over the long term but have a large allocation of defensive assets (i.e., cash, term deposits, fixed-interest investments) in your portfolio, you may need to reconsider your risk profile to meet your investment goals.

If your current asset allocation doesn’t align with your investment strategy and financial goals, it may be time to rebalance your portfolio.

4. Rebalance your portfolio

Rebalancing your portfolio means shifting the allocation of each investment within your portfolio to align with the level of returns you’re trying to achieve and your tolerance for risk.

If your portfolio has a higher level of risk than you’re comfortable with, you may want to consider swapping some growth assets for defensive assets, and vice versa.

However, it’s important to note that, unlike shares, many other investment options have stated withdrawal periods to consider, and this may be a lengthy process.

Before making any investment decision, we recommend seeking advice from a licensed financial adviser to ensure your strategy is tailored to your unique needs.

5. Attend to tax matters

It is essential to understand the tax implications of your investments. This not only helps you to be tax compliant, but it may also assist with tax planning – that is, arranging your financial affairs to keep your tax to a minimum.

The recently announced 2021 Federal Budget includes significant tax changes that you may want to consider when reviewing your portfolio. The ABC provides a useful summary of the Federal Budget, outlining the key changes and the implications they may have on the value of your investments, financial situation and taxable income.

Depending on your personal situation, you may also want to consider including certain investments in your portfolio that offer potential tax advantages.

For example, if you’re an Australian investor in a property trust, you may be eligible to receive tax-deferred amounts on your distribution income – which may reduce the amount of income tax you pay from your investment in the trust in a given financial year.

Whatever your financial situation, by reviewing your investment portfolio with our five tips, you can enter the new financial year with your best foot forward.

Investing with Trilogy

We operate managed investment trusts, focused on property, and other financial assets on behalf of over 14,000 investors. We do this by leveraging our combined talents to actively manage your investment. Find out more.

Please note, Trilogy is not able to provide you with tax, or financial advice and we recommend you seek an independent professional consultation about the taxation treatment of your investment when completing your tax return. This article is issued by Trilogy Funds Management Limited ACN 080 383 679 AFSL 261425 (Trilogy) and does not take into account your objectives, personal circumstances or needs, nor is it an offer of securities. Investments in Trilogy’s products are only available through the relevant PDS issued by Trilogy and available at All investments, including those with Trilogy, involve risk which can lead to loss of part or all of your capital or diminished returns. Investments with Trilogy are not bank deposits and are not government guaranteed.

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Philip Ryan
Managing Director
Trilogy Funds

As co-founder and Managing Director of Trilogy, Philip is responsible for leading a cohesive and high-performing team across Trilogy’s three offices, overseeing business compliance, and developing product offerings. He sits on the Compliance,...

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