Considerations should include:
ETHICS
This is possibly the single biggest risk in investment. Prudence, objectivity, discipline and a genuine care for clients and their money are attributes of character that are difficult to assess, but fundamental to success. Issues that impact consciously or subconsciously include the basis of remuneration, level of disclosure and transparency that the financial planning practice adopts.
COMPETENCE
The development of expertise in all areas of financial planning and related disciplines requires experience. A formal education in the field is essential. Membership of industry bodies and proper licensing with the appropriate regulator (although not a clear indication of competence) would assist the investor in assessing both ethics and competence.
PRUDENCE
Risk management, rather than the futile promise of risk avoidance, should be the standard practice.
EXPERIENCE
Your adviser should have been in practice through several market cycles and should not be learning at your expense.
INVESTMENT PHILOSOPHY
In an ever-changing environment with significant levels of confusion from media, friends and self-appointed experts, it is essential that your advisor has a clearly articulated investment philosophy that is followed consistently. Temporary market conditions and emotional responses should not alter the investment philosophy.
OBJECTIVITY AND INDEPENDENCE
Investment decisions should not be swayed by shareholder interests or institution affiliations.
CUSTOMER CARE
The adviser’s practice should provide tailored solutions and exhibit a passion for clients’ best interests.
BASIS OF REMUNERATION
Individual and corporate behaviour is influenced by the incentives in place. Whatever the basis, full disclosure is important.
SUCCESSION PLAN
It is essential that your adviser’s practice has a succession plan incorporating like-minded people with the same investment philosophy and strategies to ensure your long-term goals are not disrupted.
EXPECTATIONS
Ensure that objectives and expectations of both the client and the advisor are clear and aligned.
WHY WEALTH MANAGEMENT?
We take the time required to understand our clients’ needs and objectives, hopes and fears. We tailor solutions unique to clients’ specific circumstances. We will take the time to help you understand our world.
We accept the uncertainty of life. We will not risk your money to variables over which we have no control. We proactively ensure that our clients’ investments remain appropriate to their circumstances and meet with clients regularly.
Our investment strategy is well-founded in academic theory, proven in practice and applied consistently, ensuring continuity within our team. Our product approval process is rigorous and conservative. Investments, with reputable organisations, are in the client’s own name.
Our business model is designed to support ethics and objectivity, aimed at building and maintaining trust. Our fee basis and full disclosure ensures you are not kept wondering: “What is in it for them?”; “Why this product and not that?”.
Our professional staff hold relevant degrees and industry qualifications, and are members of appropriate bodies. We have been at the cutting edge of industry development. We have travelled widely, learned from top international practitioners and applied that thinking in our business. Training is ongoing.
We subscribe to the fiduciary and trustee principles of prudence:
- Diversification is fundamental to risk management.
- Minimising of fees, transaction costs and other expenses, where possible.
- Impartiality – we aim to balance the need for current income with the need for future income. This requires protecting the capital to provide for future income.
- Analysis and conscious decision making regarding risk, as appropriate to the circumstances.
- Where the expectations of the beneficiaries are unrealistic, the mandate should not be accepted.
We care for our clients and are committed to assisting in the realisation of their financial goals. On your own, even with knowledge, access to online software and platforms, membership of large corporations, etc., achieving financial success may not be realised. The size of our client base enables us to provide personalised service to our clients.
Our approach is consistent to ensure continuity within our team.