Investment Portfolio Construction

Elements of portfolio construction

The key to a successful investment portfolio is diversification; both in terms of fund management styles and the use of various investment sectors. Charter adopts a highly disciplined approach to the portfolio construction process which financial advisers use to design, implement and maintain an effective investment portfolio for you.

Research Practices – Comprehensive, Responsive and Impartial

LFA’s Strategy and Research group focuses on managing the relationship between risk and return.

LFA also subscribes to independent, well-respected investment research companies, such as Mercer Consulting and Morningstar, to ensure that the information provided to you is impartial and easy to understand.

In-house specialists provide ongoing analysis of legislative and technical issues in relation to investment, superannuation, taxation, social security and estate planning.

Investor Profiles

LFA uses five predetermined investor categories to help clarify and understand investors. These categories are based on income needs, investment time frames, financial objectives and attitude to investment risk. Investor categories have almost unlimited scope for variation. Establishing which category best suites you forms part of the portfolio construction process.

As your investor profile is likely to alter over time with changes to your level of income or wealth and other personal circumstances, LFA ensure that each plan they design has a degree of flexibility so alterations can be made when necessary.

Relationship between the LFA portfolio construction process and the five investor profiles.

LFA portfolio construction process

 

Source: The LFA portfolio construction process has been developed in conjuction with IPAC Securities Ltd.

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