Each investor has a different outlook on investment and different requirements. So it is important for us to discuss your personal circumstances together you with since your feedback will enable us to suggest the right kind of portfolio for you. Together we will set the proportion of risk assets you invest in, your investment range, and on the basis of this, we will suggest a portfolio whose composition is compatible with your personal situation, financial needs and perception of risk.
There are many different ways of investing in the capital market and a large selection of asset classes to choose from so discussing your needs with you and agreeing on the right portfolio for your objectives is important since it will enable us to accurately determine the right level of exposure to risk and the asset classes we select on your behalf.
It is important to stress that the longer the horizon of your portfolio the more scope there is for diversification and including assets that offer a higher potential return.
Listed below are a number of basic questions that we need to ask in order to be able to tailor your portfolio management policy:
Risk profile is very important too:
There are a number of portfolio strategies that feature more frequently than others:
Non – specific: Most of the portfolios managed by IBI fall into this category. It covers all those people who are not keeping capital aside for any particular purpose and have a medium – to long – term investment horizon. Asset allocation and risk profile will vary here and is agreed on with the client at the initial discovery meeting.
Object – specific: When a client is saving for a specific short – term purpose (such as the purchase of a home within the space of a year or so) we usually recommend holding money in bank deposits rather than in an investment portfolio. Sometimes the timeline can be longer, for example money held in trusts for children, which is not to be used until they become adults. In cases like these the portfolio is customized according to the client’s needs. Because it will be quite some time until such investments are realized we design portfolios like these so as to achieve the maximum return with less attention to volatility.
Monthly income withdrawal: This portfolio is suitable for a client wishing to draw a monthly income and will consist largely of bonds, which generate the source of the money paid out every month – interest and pay-downs of principal. Clients can either leave the principal in the account or use it up gradually.
Fixed Income YTM: Designed for clients who wish to hold bonds only in their portfolio. This will usually consist largely of corporate bonds and is intended to deliver a superior return to bank deposits. Bonds are held until maturity and the proceeds are then re – invested