Investment Planning Advice
Investment Planning & Advice service
“Someone’s sitting in the shade today because someone planted a tree a long time ago”
Our Investment Planning and Advice service is all encompassing, providing individuals, families, entrepreneurs, businesses, trusts and charities with bespoke and tailored service to suit them.
We are risk adverse, value based, long term investors, driven by our desire to provide clients with the best risk adjusted returns net of tax, given their specific circumstances.
Risk is managed at every stage of the investment process, aiming not to eliminate risk, but to use risk measures to support the decisions we undertake.
The Prismatic Wealth Investment Process is continuous, encompassing risk at each stage, with a focus on clients’ aspirations and needs in continual review.
Our process always starts with an in-depth conversation with the client and a Prismatic Wealth Advisor.
The discussion will cover a range of topics, which will determine several key inputs to then identify the correct investment strategy capable of meeting the client’s needs. It will develop amongst other things, a mutual understanding of the client’s tolerance for risk, aspirations for return, need for liquidity, and requirements for income, tax position, existing assets and any investment biases.
The principle aim of this discussion is to understand the service required, the identification of assets for investment and to provide the framework for creating a suitable structure and portfolio of those returns.
Investment strategy is the plan of action designed to achieve your aspirations and needs. In determining the right strategy for each client, we build an asset allocation framework to provide a diversification of opportunity, thereby ensuring the greatest probability of achieving their aspirations.
Identification of the right asset classes at the right time is critical to the long-term performance of a multi asset portfolio, with academics quantifying around c80% of clients investment returns are driven by asset allocation rather than investment selection.
Successful asset allocation over time is a blend of investment experience, art and quantitative assessment. Investment experience and art is delivered by the Prismatic Wealth Investment Committee whose members pay close attention to the global economy and the risks associated with asset classes. Quantitative assessment is driven by 3rd party computer models which take as inputs answers to psychometric questions from clients and combine these with asset class assumptions. The result is a suggested asset allocation for each client to review alongside their advisor.
Once the clients’ asset allocation is set, the next step is to determine who and what is best able to deliver the performance across the different market cycles.
Investment selection and monitoring is a marriage of quantitative and qualitative due diligence, which can be summarised as People, Process and Performance. It is intertwined with Asset Allocation and Portfolio Management and cannot be undertaken in isolation without knowledge of the overall client objectives. We employ both ‘active’ and ‘passive’ investments, recognising that no one strategy works in all market conditions.
We utilise quantitative techniques across the relevant investment universes to identify managers capable of delivering consistent, quality returns. However, what is key to selecting an investment manager is understanding the rationale for making the decisions they have and so meeting with the investment managers is an important step.
After identifying the right mix of assets and subsequently the investments within those asset classes we wish to use, our role is of ongoing management and monitoring of portfolios and investments to ensure they remain consistent with the client’s risk and return objectives.
The size of each position is dictated by our expectations of their performance and risk characteristics individually and how they correlate with the other positions in differing market conditions and cycles.
Portfolios are monitored periodically to ensure they remain relevant and consistent with the long term aims of the client.
Reporting is an important step in the process.
We view it as a two-way process of allowing Prismatic Wealth to communicate how a client’s portfolio is performing against its relevant objectives and benchmarks and for the client to inform us as to any changes in circumstance that may affect their objectives.
As a minimum we would like to meet with clients annually and will report to clients as often as they like.