Having been actively involved with clients for over 30 years, we have observed how individual portfolios responded to, and recovered from, significant share market events.
Some attributes that impacted individual client performance included:
- Percentage of ‘income’ vs ‘growth’ assets
- Exposure to ‘active’ vs ‘passive’ managers
- Whether the portfolio was held in the ‘accumulation’ or ‘drawdown’ phase
- Timing of transactions
- Impact of fees, both direct and indirect
- Extent to which the portfolio participated in income distributions from underlying investments
- Nature of assets that were ‘sold down’ to fund withdrawals and other transactions
Not only is it important to consider each of these factors when constructing a portfolio, it is also critical to apply a disciplined on-going process to help you to:
- capitalise on profits that can be made during the ‘good’ years; and
- avoid selling good quality growth assets at bargain prices during the ‘bad’ years
We pride ourselves in working with our clients to construct, and manage, robust portfolios.