A traditional share broking model of portfolio management revolves around individual reviews and transactions at various points in time. In contrast, taking the wealth management approach of the Premium Service provides a more all encompassing relationship between advisers and investors. Strategic investment advice, continuous portfolio monitoring, comprehensive reporting and administration services provide a premium platform upon which to achieve client’s investment goals. The combination of top-class research and a comprehensive strategic investment advice gives clients the opportunity to concentrate on investment decisions rather than be concerned with administration or transaction costs involved in traditional models. Furthermore, under a fee-based approach adviser and client goals are more closely aligned then under a transaction-based model. Overall we feel that the investment outcomes for clients are much improved under the Premium Service. Below is a summary of some of the services and advantages of the Premium Service. Please feel free to contact us should you require any further explanation or information.
Strategic Investment Advice: Long Term Structure for Client Portfolios
We will work with the client to develop a strategic plan for their portfolio. This will form the basis of our understanding regarding the client and their requirements and will be something that we continually refer back to in making recommendations. We typically seek to gain an understanding of a client’s financial situation, financial needs, financial goals and tolerance for risk. Using this as a basis we determine that appropriate asset allocation split between domestic shares, international shares and funds, fixed interest, listed property, alternative assets and cash. Research indicates that 90% of total portfolio return is accounted for in decisions around asset allocations. Once this overall direction is decided we construct the portfolio and then invest funds in accordance with the strategy. This approach ensures that a long-term perspective is included in the overall investment strategy which is a vital element in enabling clients to achieve their financial goals. For Premium Service clients we also conduct an annual strategic review to ensure our understanding of a client’s financial goals, needs and situation remains in line with the current investment strategy.
Custodial Services: Lowers Risk as Ownership Remains with the Client
Our custodian JBWere Nominees holds client assets as a bare trustee. This provides all the necessary benefits to clients such as paperless international holdings, protection of corporate actions and quality reporting without clients taking on any further risk within the structure. The client remains beneficial owner of all investments, neither the business of Aspiring Wealth Management, JBWere can in any way affect the investments of the client thereby maintaining a very high level of security for client assets. Client assets are individually identified within external registry systems providing an additional layer of safety for investors.
Reporting: Comprehensive and Detailed
A comprehensive quarterly report provides rich detail about the performance of portfolios in a clear, straightforward fashion, with analysis, results and graphical information and details in a comprehensive document. This ensures that clients are very aware of how their investments are performing. For trustees of trusts and charities this is particularly important as they have obligations to others to ensure they are monitoring investments carefully. In addition an Investment Income Summary as well as a Foreign Investment Fund report are provided on an annual basis. The information and analysis contained in these reports can significantly reduce other professional service fees such as annual accountancy fees, as much of the work is now done automatically rather than requiring additional work.
Portfolio Reviews and Recommendations: Regular with Constant Monitoring
In conjunction with the quarterly reporting a full review of Premium Service client’s portfolio is conducted on a quarterly basis. The current investments are carefully considered, both in their own right, and as part of an overall strategic plan and detailed recommendations are made which are generally based on world class investment research. In addition investments are monitored constantly and where urgent changes are recommended clients are contacted as soon as possible.
Research: Access to world class investment research
Client’s have ongoing access via their adviser or the website to comprehensive economic, strategic and company research from JBWere and Goldman Sachs’ internationally acclaimed research teams to help guide your investment decision making.
Client Input Levels: Bespoke solutions
Under the Premium Service we can offer a range of bespoke solutions with regard to the amount of input clients wish to have in the investment process. If you want to be an active driver of your portfolio, we will work with you in that capacity. If you want us to provide most of the management advice and direction, we will establish a set of guidelines and work within those for you. We also offer a discretionary service within defined parameters for clients wishing to have minimal input in the investment decisions.
Fees : Transparent, cost effective and aligned
A major difference between traditional share broking and the Premium Service is the structure of how fees are paid. Fees are charged for the combined advisory and custody and administration services. They are based on a percentage of assets under management and brokerage is not charged to individual transactions. Clients are freed up from having to consider transaction costs in making investment decisions. This is of great advantage in today’s fast changing investment environment as adjustments can be made swiftly and regularly based only on whether or not it is a good investment decision for the client. Furthermore clients and their advisers interests are all aligned to maintaining and growing the portfolio as this is to the advantage of both parties. These fees have the advantage of being fully tax deductible, unlike brokerage on ordinary transactional trades, making them more cost effective.
The Premium Service offers a complete administration solution for client’s portfolios including the accurate tracking of investment valuations, the collection of coupons & dividends, timely settlement market transactions, and full cash management facilities in most major currencies. In addition, rights issues, takeover bids and other corporate actions are easily managed by a simple communication between adviser and client ensuring that these often valuable investment opportunities are not missed. This is in contrast to non-custody holdings which require signed forms and cheques delivered to the registry, often under significant time constraints. Clients will be removed from the concern and mechanics of maintaining their portfolio, leaving them and their adviser free to concentrate on the bigger picture
Premium Service clients have access to online services that include: live market prices, private client research, up-to-date portfolio valuations and transactional history. This provides clients with the ability to monitor their investments on a live basis whenever it is most convenient to them.
Preferential interest rates and access to new issues
Premium Service clients are offered higher rates of interest on cash balances held within the portfolio. Premium Service clients have preferential access to floats and new issues. Through our relationship with Goldman Sachs as well as other investment banks clients will obtain access to New Zealand and Australia’s most sought-after floats and placements where we are permitted to do so.
Generally the premium service is only offered to a small group of clients as it requires a level of service we can only provide to substantial investors.
Download a Premium Services Brochure in PDF