How Profusion Planning Approaches Risk
Market Update
| August 11, 2025
Why We at Profusion Planning Manage Risk Differently
The recent collapse of the First Guardian Master Fund and Shield Trust, which has frozen around $600 million and impacted thousands of investors, has rightfully created elevated anxiety in the public domain when it comes to investing.
Our thoughts are with the unfortunate investors whose savings are tied up in these schemes and now at significant risk of permanent capital loss. This no doubt will be causing many of them stress and hardship as they worry about their financial future.
While it is too early to comment on the full implications for those affected, these product failures underscore the critical importance of robust investment governance. At Profusion, we have deliberately constructed multiple layers of protection to safeguard your financial future.
Our comprehensive governance framework is designed to protect your investments from potential collapses like the recent First Guardian and Shield experience. Key features of our approach include:
Our Well-Defined Investment Philosophy
- At Profusion, one of our core investment beliefs is that our clients are more engaged and comfortable to stick to their financial plan through the inevitable ups and downs of markets when their investments are easy to understand. In building investment portfolios, we do not use overly complicated, opaque or “black box” strategies.
- We believe Profusion clients are best served with an investment plan that matches their unique goals, timeframes and financial strategy. We will construct client portfolios with series of pots that match our clients’ investments with their personal short, medium and long term goals. We focus on the portfolio characteristics that matter to the individual we are working with. The investments selected for each pot are chosen to align with the specific objectives of our targeted investment “pots”.
- Profusion clients choose us because we are trustworthy financial partners. We will only take risks that are necessary to achieve portfolio mandates and client objectives. We manage risk carefully through diversification and the use of thoroughly researched investments and highly regarded fund managers.
Our Investment Committee
- Our Investment Committee is comprised of 5 financial advisers and a professional Asset Consultant, Context Capital, providing comprehensive insight across our client priorities and preferences.
- The Investment Committee carefully considers the liquidity of investments incorporated in managed portfolios, so that our clients can access their money quickly, should they need to. This means when we construct the Profusion managed portfolios, they are almost entirely comprised of highly liquid underlying investments, significantly reducing the chance of our clients being exposed to schemes like First Guardian and Shield and in turn significantly reducing the chance of permanent capital loss.
- Our Investment Committee reviews stress testing and scenario analysis to inform portfolio construction.
- The funds and ETFs selected have long track records and strong industry reputations.
- Investment Performance undergoes regular review by our Investment Committee.
Our External Asset Consulting Partners
Context Capital
Provisions
Context Capital provides unbiased, institutional-grade research and high-quality portfolio analytics.
Ongoing Monitoring and Support
Context Capital delivers ongoing monitoring of the underlying investments and fund managers throughout all market conditions.
Stay A Step Ahead
Context Capital allows for access to greater due diligence and depth of research through their specialist network, tools and expertise in portfolio construction and analysis.
We are confident that the underlying assets in Profusion managed portfolios have been chosen through a comprehensive and considered due diligence process.
Our approach creates meaningful checks and balances, which provides our clients with piece of mind. If you would like to understand this process in more depth, we would be delighted to walk you through the specific safeguards protecting your financial future.
