Investment Management

By definition, investment management can mean any number of things, but most importantly it must be so that investors can adjust existing portfolios or create new portfolios to achieve their investment goals which stated by the particular investor. These goals should however be realistic so that investors do not succumb to over expectations. It is also important to note what an investor’s appetite for risk is which can vary from conservative to aggressive and anywhere in between. Beta Wealth provides investors with a number of tools and ways to better handle their investment management needs.

Discretionary Portfolios

Discretionary investment management is a form of investment management where the portfolio manager or investment counsellor makes buy sell decisions or investment changes on behalf of the client. Therefore the investment decisions are made at the portfolio manager or investment counsellor’s own discretion. There are a number of benefits to discretionary portfolio management such as that the client is freed from the burden of having to make day-to-day investment decisions that could arguably be better made by an experienced and well-educated portfolio manager or financial advisor. Discretionary investment management also has an added benefit of aligning the investment managers interest with that of the client as managers typically charge an assets under administration fee as their management fee. So if the portfolio grows and prospers then the manager will earn a higher monetary amount due to growth.

Multi-Manager Portfolios

A fairly regular occurrence with many investment funds these days is for a fund to adopt multiple portfolio managers. This approach allows each manager a degree of flexibility to focus solely on specific sections of the portfolio. However teamwork and communication are essential so that managers can achieve their portfolios investment goals and not impact investors negatively.

Diverse Portfolio Selection

Beta Wealth work with investment platforms that have a selection of a wide variety of investment tools e.g. retirement annuities, tax-free savings accounts, living annuities, etc. and for each tool used there are a vast number of funds to choose from depending on the risk appetite of the client and the current state of the local and global economy. Investment managers are able to choose from pure equity portfolios, pure property portfolios, combination portfolios, offshore portfolios, etc. which gives managers an opportunity to properly expose clients to all different asset allocations in the most optimal way possible.

Low Cost Solutions (ETF’s)

Exchange Traded Funds are popular tools for investment as they require little effort on the investor’s side because the investor buys into a fund which tracks and replicates the returns of an index. For example the investor could want to see the same returns as the JSE All Share Index which is essentially the shares of the biggest companies in South Africa, he will be able to do through purchasing ETF’s. This can save the investor money as the index composition does not require active management.


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