The Partners Advice Model
We believe active monitoring of asset selection is crucial to producing solid returns. Our four stage advice model follows a disciplined process that covers:
STEP 1- Investment Structures (long and short term ramifications of investing)
Key considerations include:
- Investing in your name or your partners' name?
- Superannuation or non-superannuation environment
- Investing in a trust, company or other entity
- The structure of returns (income v capital), taxation, gearing and duration of the investment.
STEP 2- Strategic Asset Allocation (aimed at minimising risk - a key risk management area)
Key considerations include:
- The investment weighting across different asset classes - cash, Australian and International equities, property, fixed interest and bonds.
- Your risk tolerance
- Your investment duration
- Your current stage of the investment/business cycle.
STEP 3 - Tactical Investment Selection (aimed at optimising returns - process of selecting and purchasing the investments)
Key considerations include:
- Direct shares versus managed funds
- Listed or unlisted securities
- Research ratings and historic performance relative to benchmark
- Fund manager investments style and process
- Taxation and gearing levels
STEP 4 - Regular Portfolio Reviews
The importance of regular reviews to the portfolio should never be ignored. We monitor each portfolio on a monthly basis to take account of:
- Changes in the economic climate and the impact on asset allocation &
- The appropriateness of individual investments relative to alternatives.
The regular and disciplined monitoring of the investment portfolios is aimed at enhancing returns and identifying potential problems before they emerge.
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