A new and better way to manage investment portfolios

As financial planners we regularly encounter some confusion as to what financial planning is.

In very brief terms, there are two key elements of financial planning: the first element is where we work closely with clients to help them identify their goals and then develop strategies to help them achieve these unique goals; and the second element, in pursuit of these goals, typically involves recommending suitable investments for their funds.

When it comes to the investment element of financial planning it may seem fairly straightforward at first glance, simply pick some decent investments or shares and sit back and let them do their work. At this stage, we bring investment concepts into play; spanning areas such as risk tolerance, asset allocation, investment selection and portfolio construction, to determine the make-up of the initial portfolio.

In practice, it is rarely ever this simple and is usually more complicated as all inputs of portfolio implementation and ongoing administration must be considered. For this reason, we are always looking for ways to implement and administer client portfolios in a more efficient and timely manner.

The time has come for Managed Portfolios

It has only been in recent years that investment platform technology has now caught up to client expectations, in terms of efficient portfolio administration. With this backdrop, PKF Wealth is now able to offer clients a fully managed version of their portfolios. Essentially, this means we can utilise the latest platform technology to provide clients with an investment portfolio that still allows for a degree of customisation.

The PKF Wealth Managed Portfolio service draws on this new platform technology to actively manage client portfolios in real time. For example, the committee can implement, within 24 hours, the removal of a fund manager or a portfolio rebalance. Such flexibility can allow for necessary defensive, or timely offensive changes to your investment portfolio.

Previously, we were required by law to seek client approval on any portfolio adjustments, which was often a slow and drawn-out process. Now, this new technology permits immediate changes to client portfolios at the time the decision is taken and approved by the PKF Wealth Investment Committee. This new agility is all done under strict oversight from Ironbark Asset Management Ltd (Responsible Entity) and our professional investment consultants (Insight Investment Consultants).

Improved efficiency and savings to clients

The other big benefit for clients that are invested in the PKF Wealth Managed Portfolios is that of lower fund manager costs. PKF Wealth uses its scale to negotiate reduced fund manager costs from the participating investment managers. These savings pass directly through to clients, in the form of quarterly rebates back into their portfolio cash accounts.

The net result is a more efficiently implemented and administered portfolio, with significantly less ongoing paperwork for both client and adviser, and in most cases real cost savings to the client.

The PKF Wealth Active Managed Portfolio product is issued by Ironbark Asset Management and PKF Wealth is the investment manager for the product. Neither PKF Wealth nor any adviser receive any financial gain if this product is recommended to you.

Please contact PKF if you would like to find out more about how this could be of benefit to you and your investment portfolio.

Important legal notice: This information is not intended to be nor should it be construed as advice. This information is intended as a summary only and (if applicable) potential investors must read the relevant fund’s offer document before investing. Mark Folpp is an authorised representative of PKF Wealth Newcastle Pty Limited, ABN 11 140 496 377 ASIC no. 345827| PKF Wealth Sydney Pty Ltd ABN 31 627 832 559 ASIC no. 1267958 are Corporate Authorised Representatives of PKFWAFSL Pty Ltd ABN 65 643 632 991 AFSL 525655.