Having navigated several market and economic cycles along my journey in financial markets, I've learned that quality is paramount. There's a generation of people in markets now who have yet to experience a true downturn, outside of the very brief Covid period. At times like this, with many markets at or near all-time highs, a disciplined focus on institutional-grade quality is everything.
This focus on quality, and the gap I saw in the Australian market, is what inspired me to found Continental Funds Group.
The Gap in the Australian Market
It’s incredible to think that by the early 2030s, the Australian Pension fund system will be the second largest in the world, yet we only have the 55th largest population.
What I have seen in my journey is that there are many gaps in our investment market. It’s obvious that opportunities, particularly global opportunities, that are typically plentiful for institutional investors are not being offered to wholesale investors, who are becoming more and more sophisticated and seeking differentiated ways to grow and protect their capital.
Continental Funds Group aims to fill this gap. We want to bring investment managers to market that, in the past, have typically only been offered to Australian institutional investors, lifting the overall quality and optionality of the investment market.
A New Phase for Investors
We're seeing an interesting shift in the market as investors who have had the full benefit of the super system for over 30 years are now starting to enter the retirement or preservation phase. This is happening while the overall size of the system continues to grow, creating a clear demand for both public and private market investment solutions, depending on the life stage of the individual.
I'm not saying the offering in Australia is sub-par, because it isn't. But it can be enhanced. This is where quality is extremely important, and where we see a clear opportunity to offer proven, differentiated institutional-grade solutions for this sophisticated wholesale market.
Why We Look Through the Cycle
As we head into 2026, many markets are at or near all-time highs, which is a source of concern for certain areas. I've never been an investor interested in short-term visions; in some areas, the approach is verging on speculative risk.
What is interesting is investing in assets throughout the cycle and being very wary of potential downsides in the near term. Timing markets is impossible. For older investors, limiting downsides is particularly pertinent, and I’ve seen firsthand how sequencing risk can affect retirees’ super – poor investment returns occurring in the initial years of retirement can significantly erode balances.
The key to mitigating this is a diversified approach, with a disciplined focus on balancing capital preservation and long-term growth, while remaining invested to keep balances healthy and mitigate longevity risk. For younger investors, they absolutely have to look through the cycle. Yes, there will be pitfalls, but that’s investing.
There will be good opportunities thrown up in the next few years, but disciplined investing is key. Diversification and careful risk management remain essential − speculation is not a sustainable strategy.
What's Next for Continental
Our primary goal for the year ahead is to demonstrate what 'setting the standard for excellence' means in practice.
We are a new group, but we are founded on years of combined experience, a deep client network, and the strong governance, operational oversight and support provided by Channel Capital. We’ve started with two high-quality managers already in market, and we have a very healthy pipeline of offshore managers, with plans to add three or four more world-class investors over the next year.
This is just the beginning. It’s all part of our commitment to building the foundation of prosperity for our clients and our partners.
