Studies have shown that by far the most important factor in determining portfolio variability is asset allocation. In fact over 90% of your portfolio variance could be determined by asset allocation decisions, not market timing or stock selection.
Asset allocation is the process of allocating your capital across a range of different asset classes, such as cash, fixed interest, property, hedge funds, private equity, and equities. It is not simply a question of diversification, although spreading risk amongst different asset classes is clearly beneficial. The optimum split between these asset classes depends on your personal circumstances.
At GEM we will ensure that before you make any investment decision your personal wealth manager will fully assess and discuss your attitude to investment risk and target asset allocation. This will help us build a portfolio which will maximise investment returns within your risk tolerance over the long term.
Once your portfolio is set up it is essential to review the progress of your investment. A regular review service is usually agreed from the outset to ensure your portfolio continues to meet your expectations and to manage risk properly.
Our fee based service is subject to a minimum new or existing investment of £100,000 and includes investment and portfolio management; tax, trust and estate planning.
So in conclusion, your wealth may come from a number of different sources such as sale of your business, lottery win or inheritance. Whatever your situation, GEM will work hard on your behalf to preserve or grow your portfolio.
To learn more about how GEM can help you and to make an appointment with one of our wealth managers, call us now on 020 8543 0111 or contact us here.
The Financial Services Authority does not regulate taxation and trust advice.
© Gem & Co Financial Services LLP 2009