HomeMoney Managed Properly?3 Components

 

Asset Managment ExpertiseSystemsInvestment DisciplineLife Cycle Wealth ManagementThe Portfolio Problem

Key & Detailed References

 

 

 

 

 

"TAMRIS" - Setting standards

Independent, Impartial, Objective

Portfolio construction, planning and management

If your advisor does not have the necessary investment discipline and expertise to construct, plan and manage your portfolio, or the resources needed to fund research and development of strategy, it is unlikely that your portfolio will be properly managed.

Specific asset management expertise does not always translate into private client portfolio management expertise.

A manager of a mutual fund may be an expert at stock selection and in managing a focussed portfolio of stocks, but they may not be versed in the management of assets to meet financial needs. The two are distinct though related investment disciplines.

An organisation may possess excellent asset management expertise, is well resourced but its primary focus may not be on the management of financial needs as well as assets over time.

If an organisation is not managing the relationship between your assets and financial needs, who is?

And, if the portfolio is not structured around your needs, how is the person charged with this responsibility going to be able to execute this responsibility?

Key to managing the integration between the management of assets and financial needs over time is a portfolio structure and a discipline capable of managing these complex relationships. This is a specialised area. Text Box:  

Often the responsibility for the management of assets and needs is split between the portfolio manager and the financial planner/advisor.

In order for such a relationship to be effective, somebody with the necessary expertise needs to be in charge of the management of the overall relationship between assets and financial needs. Text Box:  

Great asset management can easily be undone with an inappropriate portfolio structure and ineffective long term planning.

Managing the long term relationship between assets and financial needs is a specialised area. Most of this expertise is concentrated in academia and in actuarial firms. Even the standard industry professional designations do not deal with this area of portfolio construction, planning and management.