Part of the ongoing investment process at The Investment Collective is the management of client portfolios. As a team, we are always tending to client portfolios and we see it as being similar to the process of maintaining a healthy garden. Investments without future prospects are weeded out, whilst new investments that we foresee as having a bright future are included. Existing investments are managed, trimming or adding to the investment depending on ensuing market valuations.
We employ a ‘catch all’ methodology to maintaining portfolios, and these portfolios are reviewed in a variety of ways. The most common being the six monthly review where our Portfolio Administration System (‘PAS’) alerts us of portfolios due for review after a six month period. We will also schedule a review when alerted to the fact that the portfolio has either a high cash balance or low cash balance. As we are striving to operate portfolios as efficiently as possible, any excess cash will be deployed if necessary and shortfalls in cash for future drawdowns will also need to be managed.
Lastly, we will occasionally action a change in the portfolio when we decide it is in our client’s best interest to exit from an investment. We initiated this recently whereby we recommended our clients withdraw their investments in the company. In this case, a sales recommendation is made and we then review the portfolio to make a subsequent recommendation for the cash that is raised. Given our high-quality benchmark criteria for inclusion into our Approved Products List, this event is generally quite infrequent.
Maintaining efficient portfolios is a vital cog in the investment process, similar to watering a garden. We are continually fine-tuning this process with the aim of extracting the maximum benefit from limited capital.
Please note the above article has been prepared for general purposes only. It may not be exactly how your investment portfolio is managed. It has not taken into account your personal information or investments. If you would like more about how might review and maintain your current or potential investments, please contact one of our skilled and friendly financial advisers today.