Portfolio returns are determined by:
1) the mix of assets in the portfolio
2) the currency they are held in and
3) the specific securities and property you have selected, in that order.
You divide the portfolio into four primary asset classes: equities, fixed income, alternatives, and cash. Equities (shares) are your growth engine, linked as they are to the growth of the economy; fixed income (bonds) provide stable income and diversification; cash is your emergency backstop and gives flexibility, while alternatives (property, gold bullion, etc) include other assets that can play a part in keeping you safe. Investment property, in particular, adds to the growth component usually supplied by shares and diversifies the portfolio very well because it runs to a different cycle to shares.
You move funds between these four categories depending on what type of market you are facing and what type of client is involved. The profile of the client is particularly important, steering you towards a less conservative or more conservative mix, depending on the client’s age, risk personality, and goals.
An aggressive portfolio has a high allocation to shares, property, and alternatives, whereas a conservative portfolio has an outsize allocation to high-quality bonds and cash. A transitional portfolio might have allocations proportionately spread out among the four categories.
Whatever the portfolio looks like, its performance has to be measured against its benchmark regularly, to see that it is not falling behind an economically acceptable return.
The costs and fees you pay to have your portfolio managed is a big deal. Passing your money through several intermediaries, advisers, managed funds, and platforms, each taking a fee, results in a big leakage in returns that is compounded as you move through market cycles where returns are subdued.
For that reason, Glaser Portfolio service is based on direct investment in securities and charging only for work done, at an hourly rate. The fees are capped and should not exceed 0.05% of the value of the portfolio assets.
How we Operate
We are investment consultants. We meet, analyze, and advise you on a path forward, whether you are a young person starting out on a plan, or someone close to retirement.
You get to know us and we get to know you through a meeting where we gather info.
We draft a two-page report from that meeting which outlines a broad strategy for your portfolio and email it to you. There is no cost or obligation for you to take us on.
If you become a client, we produce the plan with a list of specific shares, bonds and any other assets needed in your portfolio and the reasoning for it.
We do all the compliance work ahead of drafting the full plan and sign you up to the online Brokers at ASB Securities.
If you are a full-service client, we will buy the securities for you online (through ASB Securities), which are immediately registered in your name.
We monitor your portfolio through the Sharesight platform (which we pay for) and send you regular updates on performance.
We send you year-end taxation reports to give to your accountant.