What Portfolio?

What Portfolio Is Right For Me?

It is very important to understand the differences between different investment portfolio's and to decide which type of portfolio is most suited to your circumstances and objectives.

Our Built in Financial and Investment Advisory Service assists us to work together to assist you to determine this.

If you agree with our recommend a portfolio approach, that we think will be a best match for your requirements (after working with you to understand these) then we start implementing the investment plan and managing your new portfolio for your objectives and requirements.

In what way are there different types of Portfolio's?

Portfolio's vary - based on varying benchmarks and characteristics. Important portfolio characteristics that vary include:

1. Benchmark Asset Allocation:

How much of your portfolio funds are allocated to each asset class?

2. Tactical Asset Allocation:

Is your portfolio's allocaiton of funds to each asset class avried over time in response to varying economic circumstances?

3. Specific Asset Selection Methodology:

What due diligence or investication or research is undertaken into the asset sepected for your portfolio? How are assets chosen within the asset allocation identified and on what basis are they divested from the portfolio? -  For instance are assets purchased and sold based on their intrinsic value versus their price in the market, or based on some other method ?

4. Expected Returns:

How much of the exepcted returns are derived from income and how much from increase in capital value? How often is income received from the various assets?

5. Tax Effectiveness:

Is the portfolio invested within the most effective tax structure given all the circumstances of your situation have been taken into consideration? Is there tax deferred, tax exempt and franking credited income derived by the portfolio?

6. Expected Risks:

What is the track record of variability of returns from assets within the portfolio and from the portfolio over time? What counterparty risks are there?

7. Liquidity:

What is the amount of cash available, and how much cash should be availbale, to meet portfolio outgoings (such as if income is to be paid to you on a regular basis)? Is it necessary in your circusmtances to have other defensive assets available in the portfolio which can be divested to cash within a few days to meet unexpected short term calls on capital?

How is an Asset Accumulation Portfolio Different from an Income Focussed Portfolio?

It is a portfolio that has, compared to an Income Focussed Portfolio, for instance:

- Higher allocation of portfolio funds towards assets whose valuation is more at risk of regular fluctuations in valuation, such as Australian Shares and Investment Property.

- Greater concern to be vested in assets that have exposure to growing parts of the economy and to highly competitive businesses or assets in their market space - to support valuation increases over time.

- Less concern with the proprotion of investment return that is dertived from income or distributions, interest and dividends, versus capital gains or increases in asset valuations. Willingness to take capital gain returns on an irregular basis.

- A greater willingness to purchase a greater proportion of assets that need to be vested for a longer time frame (such as property, including direct property, and equities).

The portfolio may still generate significant income however as many of the assets that are excellent for accumulation portfolio's also pay very good income levels and many offer fully franked tax credits too.

We're here when you need us.

To request an appointment with an Accounting, Law or Investment Client Service Manager, please fill out the form or Call: 1300 797 858.

View Investment locations



Service area:

Preferred Contact Method:

*Please complete all fields