What We Do
Asset Class Investing
One of the many reasons clients continue to retain PFS affinity partners as long term, wealth management coaches, is because they help their clients grow and protect their wealth.
Our clients accomplish this by following the 'Seven Secrets of Successful Investing'. To read these Seven Secrets please select one of the following:
- Goals and a strategy are essential
- Markets are efficient
- Risk and return are related
- Diversification is essential
- Structure delivers performance
- Portfolios must be tailored
- Attitude is everything
In summary we will provide you with a range of investment vehicles and managed funds to suit your risk profile and structural needs. We will minimise your fund transaction and tax costs whilst coaching you to sustain effective strategies to realise your long term wealth.
Goals and a strategy are essential
You can't achieve your goals if you don't know what they are. And you can't devise a plan of action to meet your goals without a considered analysis of where you are and what is achievable. In short, the first secret of investment success is to create a strategy which clearly sets out your goals. With these goals established, we help you identify the steps you need to achieve them which are Specific, Measurable, Actionable, Realistic and Timely - or SMART.
Markets are efficient
Markets work and, for investment purposes, assets are fairly priced. Plan B's experience is that the markets are efficient - this means prices reflect the knowledge and expectations of all investors. Though prices are not always correct, markets are so competitive that it is unlikely that any single investor can routinely profit at the expense of all other investors.
Risk and return are related
Investments earning higher relative returns usually carry higher risk, and the value of those higher return investments may rise and fall significantly over time. More stable investments such as cash or shorter duration fixed interest, are likely to earn less than equities, including Australian and International shares. The implication is that your returns can vary greatly in accordance with the timing, duration and composition of your investment portfolio.
Diversification is essential
Diversification is the antidote to uncertainty. Concentrated investments add risk without any additional expected returns. Asset allocation is the principal driver of returns in a broadly diversified portfolio. While historically, share or equity investments have generated high long term average returns, they have also been the most volatile. By investing across a range of asset classes, according to your objectives, you can dampen volatility while still capturing the returns you need to achieve your goals.
Structure delivers performance
Plan B Trustees Limited's investment strategies are designed to be exposed to the factors that drive returns. This entails capturing dimensions of risk identified through credible research, as well as minimising transaction costs through innovative trading and portfolio engineering.
When traditional fund managers buy and sell equities, the consequent costs and taxes may seem small relative to the overall transaction, but these represent a direct tax on performance, payable immediately, and undermine the opportunities for compound growth.
Plan B's innovative structuring avoids these problems - with critical impact on a fund's long term performance.
Portfolios must be tailored
There is no such thing as a 'one size fits all' financial strategy because no two clients share the same goals, risk profile or financial circumstances. The design of a personal financial plan and portfolio is critical to reflect your own objectives.
Attitude is everything
You can have a well defined strategy, an effectively structured and diversified portfolio, as well as the best wealth management adviser in the world, but these alone do not guarantee investment success. Ultimately, your attitude will determine the level of your long term success.