Ten Steps Towards a Personal Investment Strategy Cont...
6. Shaping your investment portfolio
Having determined the asset mix, which is approximately 70% of the decision-making process, we decide upon the sub-asset allocations. Whether, for example, to invest in foreign or domestic stocks, what markets to invest in, the relative size and valuation of the equities, and so on. Once this structure is in place, we look to determine the security selection, which we believe has the least impact on investment portfolio performance.
7. Tax efficiency and custody of client assets
We do not hold any of our clients’ assets. For security, by using a separate custodian and investment manager clients obtain a double check on their assets. We utilise a number of custodial relationships and the appropriate custodial situation will depend on your personal tax status. In order to optimise returns for separate account holders, we use both on and offshore structures as appropriate.
8. Getting invested
Once the decision making is complete, becoming invested is a relatively straightforward paper process of confirming strategy, marshalling assets, liaising with third parties, where necessary, and through a dedicated Fisher administrator effecting transfers and activating the account. We confirm completion and your investment begins to work.
9. Proactive management
Proactive management means several things: firstly, that we continually monitor your investment portfolio and are active in navigating it through all market conditions. Secondly, we don't limit ourselves to a single investment style since we think that this closes doors on consistent gains: our approach to investments is flexible, pro-active and dynamic.
Tying ourselves to one investment approach might be likened to travelling only by car – travelling by car is all very well if there’s a road and not too much traffic, but if a train, boat, plane or bicycle is more expedient, we’ll take it.
We also seek to capitalise on the discovery of important and often overlooked knowledge as well as the original analysis and interpretation of widely available information.
There are good years and bad years! Nevertheless, Fisher’s proactive investment style enables steadier navigation through difficult times and greater assertiveness in buoyant markets.
10. Reporting back to you
Managing investment portfolio accounts proactively brings with it the responsibility of keeping clients up to date and well informed as to how their investments are working. Communication is the bedrock of our good relations with our clients.
Clients who join the Private Client Group are allocated a dedicated Account Officer who is their direct link to the Investment Policy Committee. We send out quarterly reports, but maintaining transparency through clear and personal reporting is fundamental to our picture of the investment partnership. A dedicated Account Officer keeps in regular contact with the client, in addition to which we hold regular seminar programmes.
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