Wouldn’t you like to be on the money?
Alfred Adler (1870-1937)
Sigmund Freud (1856-1939)
For more than 100 years, investors have largely failed in the markets, often exerting energy on how the markets failed them.
Had they looked harder, they may have found a tell-tale sign for their misfortunes within: master your mind’s wellbeing and an increased likelihood of achieving success can follow.
This is the unique premise on which Force500 is founded. Rooted in wellbeing, Force500 is a peerless financial vehicle, arming investors with a robust mental framework for financial success.
How's your money feeling?
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How's your money feeling? ✦
about
Force500 is a peerless financial vehicle designed to optimise investor wellbeing and, in turn, success with the S&P500. Since inception, the S&P500 has subjected investors to a rollercoaster-like experience, despite being a winning machine. Every second, minute, hour and day of the week, investors are barraged with moment-to-moment, frenetic and often inexplicable numbers and commentaries that together generate a highly unsettling, high-stakes feedback loop. This makes it universally difficult—and historically near-impossible—for most investors to extract the inherent value of the S&P500.
Force500 implements a unique framework of regular, positive and reliable reinforcement that activates a positive mental cycle and restores some equilibrium. Real-time, ongoing communications, rooted in a proven psychological methodology, offset the S&P500’s constant negative feedback loop to bolster investor confidence and increase the likelihood of a better outcome.
This framework is underpinned by the Quantum of Solace. This is a simple yet essential concept that prescribes a minimum amount of wellbeing necessary for a relationship to survive—and it is the foundational launching pad of Force500. By recasting the dynamics between investors and the S&P500—which can be fraught, random and disruptive—as a symbiotic relationship, Force500 optimises investor survival, such that investors can extract the underlying, and undeniable, value from the S&P500.
NATURE VS NURTURE
Human nature is wired to recognise and welcome reliable, systematic and predictable patterns—and conversely to reject anything anomalous, perceived as a red flag or danger signal. Some of history’s sharpest thinkers, including Ivan Pavlov and Alfred Adler, have demonstrated that what we fixate on can envelop us, but that fixation is not predetermined—what we focus on is ours to choose. With the right conditioning, we can shift focus onto patterns that uplift rather than undermine our personal wellbeing and thus maximise the possibilities of achieving success.
We believe this think-shift has extraordinary real-life application in the stock market. Force500 layers a superior lens onto the S&P500 that conditions investors to fixate more effectively—not on disruptive, short-term price fluctuations or market swings that historically short-circuit the investor experience—but on their ongoing experiential progress.
All investors, at every level, are exposed to the vicissitudes of the market, where price behaviour is unpredictable (red flag), uncontrollable (red flag) and in constant flux (danger signal). Without a robust framework to buoy wellbeing, history has shown investors often flounder; they exit investments early, commonly at a loss, or attempt to time the market to their detriment, failing to reap the underlying raw potential of the S&P500.
Since 1923, the S&P500 has generated an annualised total return of approximately 10.5 per cent. This would have grown $1 into more than $13,000 amid the Great Depression, one World War and even a global pandemic. So why aren’t more investors singing its praises?
History shows the average S&P500 holding period for investors is mere months. Even worse: most professional investors underperform the S&P500 annually by about three per cent. Their long-term performance is even bleaker; evidence shows this underperformance only becomes more dismal over time, with more than 90 per cent of professional investors underperforming over a 20-year horizon.
In truth, the S&P500 has proven a wonderful repository of wealth—but only for those few steadfast investors who have held it long enough and understood its underlying value proposition.
Their point of difference? Not luck, but conditioning. They were able to fixate on their progress and thus withstand the market’s ceaseless and uncontrollable twists and turns.
DivGro, a Sydney-based investment boutique, has demonstrated a correlative, real-time proof of concept; a weekly dividend progress engagement system, founded in 2019 and involving significant investor funds, routinely uplifts a multi-hundred investor audience.
Uniquely powered by dividend growth, DivGro’s innovative feedback system provides a tangible, easy-to-follow and reliable proxy to track underlying business progress. DivGro clients report vastly improved investment experiences compared with their other experiences and investment alternatives.
Force500 offers a similar framework for investors within the S&P500, embedding the investor pathway with regular, consistent and positive psychological cushioning to neutralise the S&P500’s feedback loop, enhance wellbeing and help investors stay the course of their investment horizon.
history
is onside
mind over matter
Key thinkers have demonstrated proofs for the benefits of psychological handholding. Among them, renowned psychologist Lev Vygotsky understood that cognitive development can be divided into three tiers. At the lower limit, one is able to learn new things by oneself (no cushioning necessary). At the upper limit, there is a learning ceiling; one cannot learn new things, even with the assistance of others. But there is a magical middle ground: in the in-between, or what he termed the Zone of Proximal Development, we can learn new things through the specialised help of a More Knowledgeable Other.
Expanding on DivGro’s proven email engagement system, Force500’s email system works to proxy the Zone of Proximal Development and in turn condition investors to achieve their own Quantum of Solace. It may sound lofty, but together these psychological concepts combine in a unique and powerful formula that 1) arms investors with regular, highly targeted and active handholding in order to 2) refocus their energies away from the destructive effects of the S&P500’s feedback loop and toward maximising their performance.
Like Pavlov and Adler remind us, what we focus on is ours to choose. The Force500 email system facilitates an opportunity to mentally and emotionally recondition via a specific and established methodology, laden with enormous potential value to uplift wellbeing and upgrade investor performance.
how IT workS
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Force500 replicates the S&P500 within a framework of psychological and emotional reinforcement to arm investors with confidence and shift focus away from moving prices as a measure of performance.
In addition to replicating the S&P500, and per DivGro’s methodology, the additional stocks we invest in are those of companies that have demonstrably raised their dividends consistently at attractive and sustainable rates, which we expect will further contribute to the experiential emotional fortitude that is foundational to the fund.
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Proactive, ongoing and practical engagement mitigates the effects of the disruptive feedback loop generated by the S&P500, optimising the chances of achieving better results.
Each week, we deliver absorbable, consistent and positive outcome-driven communications that bolster investor confidence and uplevel the likelihood of achieving superior outcomes.
Why it works
Why it works
Learn more about our unique approach.
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FAQs
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To replicate the S&P500 within a framework of psychological and emotional reinforcement in order to bolster investor confidence and shift focus away from moving prices as a measure of performance. Proactive, ongoing and practical engagement mitigates the effects of the disruptive feedback loop generated by the S&P500, optimising the investor experience and thereby increasing the likelihood of success.
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Please get in touch via the contact form below to review the information memorandum and complete the application form.
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Monthly.
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Minimum two weeks’ notice.
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Yes, automatic reinvestment is encouraged.
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Twice a week. In addition, you may receive emails that cover annual tax statements and occasional letters or materials designed to inform and educate. Please ensure that our mailing address (hello@force500.com) is added to your email contacts to avoid correspondence going to your junk folder.
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Weekly emails providing ongoing, positive and practical engagement, as well as emails covering annual tax statements and occasional letters or materials designed to inform and educate.
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Per DivGro’s methodology, in addition to replicating the S&P500, the additional stocks we invest in are those of companies that have a demonstrated ability to raise their dividends consistently and at attractive rates, which we expect will further contribute to the experiential emotional fortitude aspect of the fund.
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The fund can invest globally but will predominantly invest in companies listed in the United States.
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Annually. Tax statements can typically be expected between the months of September and October.
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Forever. Per Warren Buffett, “for most people, the best thing to do is owning the S&P500 index fund. If you sustain that position for decades, you’d do far better than buying Treasury securities, or far better than following people. Perhaps with a bias, I don’t believe anyone knows what the market is going to do tomorrow, next week, next month (or) next year.” As such, if your investment time horizon is shorter than three to five years, Force500 is probably not suitable for you.
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A Sydney-based boutique investment manager pioneering the combination of a dividend growth strategy and a unique, purpose-built reporting and engagement system specifically designed around the emotional and psychological make-up of long-term investors.
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Australian Dollars (AUD) and US Dollars (USD).
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The Force500 Fund is not currency hedged. If you need a hedged version please contact our team to discuss a privately managed account.
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Any investors who qualify as wholesale investors. We accept institutions, self-managed superannuation funds, trusts, companies, partnerships and individuals, provided they meet the wholesale investor requirements.
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The management costs are 1.5 per cent per annum of the Current Asset Value of the Fund and are calculated and accrued monthly in arrears and paid on each Valuation Date. This management fee is the total fee applied to investors. Please refer to the information memorandum for a detailed description.
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No.
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No.
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Yes.
Contact
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