Step 1: Analyse client goals and objectives
This is the most important step in the process as it is the foundation on which all the other steps are built. Before choosing anyone to manage your investments, it is vital to give careful consideration to what you hope to gain in return. We use a proprietary methodology to answer, among others, the following questions:
1. What stage of asset growth are you in? Wealth accumulation or wealth preservation?
2. How much risk are you willing to assume for a given return?
3. What is the time frame for reaching your investment goals?
4. What is your tax situation?
Step 2: Formalise investment policy
As your professional financial planning advisor, having gained a complete understanding of all of the above we proceed to this next stage which is common understanding of investment aims and risk/return tolerances. This is established through the creation of a formal investment management policy document. This document guides all future decisions and is the central repository for all intelligence regarding client investment time frames, risk and return objectives, tax-sensitivities etc.
Step 3: Design optimal portfolio
The formalisation investment management policy, is used as the baseline for the creation of an optional portfolio. History has proved that asset allocation accounts for over 90% of a portfolio's performance and as such is the platform of the optimal portfolio design step. Utilising proprietary analytical models, we produce different scenarios defining a number of different asset blends that will meet the expected rate of return, while maintaining an acceptable level of risk within the portfolio. We then work through these scenarios with you to determine which one best suits your needs.
Investment performance is one of the primary objectives of any investor and must be weighed against the risks associated with such performance. Time horizons are a key element in determining appropriate asset allocation strategies.
In order to spread risk, one of the critical decision we make with you here is how to best allocate you funds' assets among the widest range of possibilities available.
Step 4: Manager Selection and Review
Once an ideal asset allocation is determined, using external standard quantitative methods we select fund managers to implement the selected asset allocation. Prior to this selection, we undertake a careful due diligence of the fund managers, analysing data such as past performance, personal qualifications of executive officers and the investment managers' philosophy, amongst others. These processes enable us to select the fund managers with the optimal management philosophy, style and capabilities to best manage your investments, having eliminated those not aligned to your requirements.
Step 5: Performance Reporting and measurement
Once the selected manager are in place, we then provide customised quarterly reporting which enables us to jointly monitor the performance of you investment managers.
Step 6: Portfolio Monitoring and Rebalancing
The final stage of the process completes what we call our “Virtuous Circle”. Our asset allocation and manager selection processes are dynamic – although our asset allocation guidelines tend to remain consistent over time, we review them continuously and will occasionally modify them to reflect fundamental market changes, or changes in your objectives or circumstances. In addition, we continually monitor the performance of the selected fund managers and through the comprehensive fund manager selection process, we are able to suggest replacements for under-performing fund managers without having to revisit you investment strategy.
Throughout the whole process we maintain a high-level of personal contact and ensure that whatever solutions we implement effectively managed your risks and deliver the results you desire.