The price of going solo vs “institutional horsepower” - What investors need to know

Please note this interview was filmed Thursday, 18th September 2025.

Not many investors could have predicted the events in markets over the last few years - we had COVID, inflation shocks, surging rates, and now we are seeing the first signs of some easing of monetary policy.

As the portfolio manager responsible for the MLC Managed Accounts strategy, Anthony Golowenko has largely been in charge of steering the ship and rebalancing the portfolio through all the shockwaves, delivering consistency and resilience to investors despite the disruption.

This year marks the five-year milestone of the strategy, so I asked him for a retrospective on the lessons learned so far and how MLC is positioning today. 

Watch the interview above or read a summary of some of the highlights from the interview below.

The strength in global equities 

With all the twists and turns of the market over the last five years, what has really stood out has been the strength of equities, particularly global equities.

Inflation, initially through COVID, and then through the other side, saw goods inflation surging. Now, Golowenko says, those pressures are easing, with goods inflation already falling back and wages growth on a “glide path lower” to what he hopes is a soft landing.

While central banks remain vigilant about employment, recent rate cuts in the US and Europe confirm that the tightening cycle is behind us.

Domestically, the government’s heavy focus on the “care economy” - being childcare, aged care, and disability care - has come back down to more sustainable levels, with a backdrop of subdued economic growth, leaving the challenge of the next leg of job growth in the hands of the private sector.

For investors, Golowenko says, "all of this paints a stronger backdrop and firmer footing for global equities," as inflation is much more under control, rates are coming off, and fiscal policy remains accommodative in the US and Europe.

Currency positioning

Currency has played a larger-than-usual role in MLC's portfolio construction this year - the global equities sleeve is currently 55% hedged, up from its long-term average of around 35%. The rationale behind this is two-fold. 

Golowenko sees the potential in the Australian dollar being undervalued. On the flip side of this, the US dollar has weakened, particularly after rate cuts, which boosts relative opportunities in emerging markets. Golowenko says they are seeing encouraging results in China and more broadly across EM.  

"We are positioned with meaningful exposure to emerging markets and maintain our hedge positioning," he says.

Key themes and opportunities

Domestically, Golowenko is wary of the meagre earnings growth among Australian large caps, with valuations leaving little margin for error. For those thinking about their domestic positioning, smaller companies may hold more promise, particularly in an environment of rate cuts and fiscal stimulus.

Globally, however, opportunities are much more attractive as the monetary and fiscal backdrop provides a firmer footing. “We’ve seen Europe start to move, Japan looking stronger, and emerging markets remain appealing,” Golowenko says.

As such, they have been allocating away from large-cap Australian shares and into global markets, particularly emerging markets, smaller companies, and select credit opportunities.

As global credit spreads have tightened, they are rotating more into real assets, such as listed infrastructure and real estate. “Supported cash flows, reasonable valuations, and growth over time - that’s why we like these exposures now,” Golowenko explains.

“Overall…we are leaning more risk-on - in emerging markets, global credit, and smaller companies both in Australia and globally.”

Lessons

Not every decision over the last five years has been perfect.

Two years ago, when global markets were being driven by a narrow group of “magnificent” mega-cap stocks, Golowenko says they chose to diversify into alternatives, global credit, and emerging markets. Those exposures delivered 10–14% returns, but not the 20%+ that global shares achieved.

“It’s a bonehead decision in hindsight. But it’s a learning experience about balancing risk and return….So, there’s the honest admission of something that could have been done better, but our focus remains consistency, humility, and delivery.”

Monitoring risk

This dovetails into the next part of our discussion on how the team at MLC monitor risk. Golowenko says the most relevant question to ask for investing is: What do you know for sure? 

"I might believe Canberra will win the premiership - that’s an opinion, emotional. But the reality is, even two or three weeks out, there’s incredible uncertainty in the result," he explains.

"From an investment standpoint, looking out two or three years, we apply humility: here’s our central case, and here are the contours around it for both upside and downside."

On the upside:

• AI and productivity: Margin expansion and efficiency gains could deliver stronger earnings growth than markets expect.
• Credit creation: Banks lending and businesses investing would provide another leg of support for global growth.

On the downside:

• Trade protectionism: The Trump administration’s tariff reset could pressure corporate margins, push inflation higher, and weigh on growth.
• Australia’s large caps: Valuations look full, leaving little room for earnings disappointment.

Portfolio construction

For Golowenko, the starting point is client and adviser preference.

“Most of us are familiar with Australian shares - the transparency, franking credits, and direct ownership are valued. So, in product design, we want transparency, efficiency, and familiarity."

MLC’s model portfolios blend direct holdings with funds, depending on the asset class and portfolio objectives:

• In conservative portfolios, Australian equity exposure is entirely direct, maximising franking credits and transparency.
• In growth portfolios, MLC leans more on funds for breadth and resilience - particularly in small caps, mid-caps, global equities, and emerging markets, where proper diversification requires broader exposure.

The key appeal to the strategy is its competitive cost advantage and exclusive access.

“Over the past five years, we’ve also been able to access institutional-class funds and even build private menu solutions," Golowenko explains. "Hedged versions, no performance fees, lower base fees. These benefits flow through to clients at scale.”

The fund manager selection process

Golowenko likens selecting a fund manager to the process of choosing individual stocks.

“You want quality. Have they done it before? What’s the tenor and culture of the team? How do they work together?

Leaning on MLC’s institutional horsepower, Golowenko says they work collaboratively with their sector specialists - in Australian shares, global shares, fixed income, credit, alternatives, and derivatives - to refine what is needed in the model portfolio program.

MLC maintains a shortlist of high-conviction managers, with backups on hand. Reviews are conducted quarterly.

"If a manager isn’t delivering, it’s like school homework: first a reminder, then a warning, and eventually removal if things don’t improve,” Golowenko says. “Over five years, we’ve made changes where managers didn’t deliver or where we found higher-calibre options at better fees.”

"It’s all about institutional rigour, transparency, and leveraging our resources for clients."

Invest with intent

For more information on the MLC Managed Account Strategies, please visit here. If you are a financial adviser, please contact your MLC representative here. If you are a direct investor, please speak to your financial adviser.