Building prudent investment portfolios for our clients is an integral component of our Total Wealth Management philosophy. Our tailored investment solutions are carefully matched to your short, medium and long term personal and financial goals.
The Managed Investment Research and Portfolio Construction Model provides the unique framework on which our client investment portfolios are constructed and then maintained on an ongoing basis.
The essential components of this framework are:
The Managed Investment Policy Committee
Our Investment Policy Committee (IPC) is a six member committee chaired by our Head of Investments with members drawn from our Compliance, Investment Services and Client Advisory business units.
The primary function of the IPC is to provide guidance to our client advisers on all investment and related matters that are central to the selection and ongoing maintenance of our Approved Product List (APL). The APL is the backbone of the portfolio advice to our clients.
Investment Research Partnerships
Managed Financial Strategy has selected Mercer and van Eyk as our primary investment research consultants. Both Mercer and van Eyk provide investment specific research as well as broader investment strategy and economic guidance to our firm. Mercer and van Eyk are widely recognised as leaders in the investment research industry. We have on-line live access to research in addition to conducting direct discussions with researchers within both organisations on a regular basis.
Additionally we have access to a wide range of investment research (on an ad hoc basis) from relationships formed in the stockbroking, property, banking and related sectors.
Investment Managers versus Direct Investments
Our fundamental belief is that over the long term the utilisation of specialist actively managed investment funds is the most appropriate portfolio solution for the majority of our clients. We believe that, via a strong research process and in conjunction with our research partners, we can identify and recommend to our clients the “best of breed” investment managers within each asset sector.
Whilst we favour specialist investment managers for the major portion of client portfolios, we also appreciate the role that direct investments (shares and property) can play in sensible long term portfolios. When used prudently, direct investing can provide excellent long term outcomes in conjunction with our specialist investment managers.
Core Versus Active Investment Strategy
Via our investment research process, the APL is structured in a manner of identifying investment managers that will form our Core Investment Strategy as well as our Active Investment Strategy – for eventual integration into portfolio recommendations for our clients. The major point of differentiation between the Core and Active Investment Strategy is the risk and return profile offered within each.
Portfolio Construction Beliefs
Regardless of the state of investment markets or the economic cycle at any particular point in time, there are a number of fundamental investment beliefs that we ascribe to when developing portfolio solutions for our clients. Our primary portfolio construction beliefs are:
- Portfolios need clear objectives
- Diversification matters
- Some risks are worth taking
- Invest for the long term
- Unlisted / illiquid investments have a role to play
- Investment specialists do add value
- Use defensive and growth investments appropriately
For more detailed information on the Managed Investment Research and Portfolio Construction Framework please contact Stephen Furness on 3391 5055 or via e-mail at sfurness@managed.com.au.
But don’t forget that investment is only one part of the wealth management equation. Our Total Wealth Management solution recognizes that and incorporates the other essential components of a complete plan.