Portfolio Management

Investment portfolios are tailored to individual client needs and objectives. An essential part of establishing client needs is determining an appropriate level of risk. Risk levels will vary across conservative to aggressive levels, and some clients may require investment portfolios in specific sectors (e.g. Global Equity). Investment portfolios can comprise a mix of ASX listed securities, securities listed on international exchanges, investment securities, fixed interest, cash, property, managed funds, exchange traded funds and alternative assets. We have a number of experts in-house and external consultants that we use to select the assets for our approved product lists for client use.

For direct shares, the criteria for selection includes a broad range of factors, including:

  • Interest coverage ratios
  • A favourable outlook for the company and the sector in which it is operating
  • The company should display a profitable history and dividend distribution record
  • The company’s shares should be trading at a discount to intrinsic value, using at least one of a dividend discount model, discounted cash flow model or a sum of the parts valuation
  • Valuations – based on either a price/earnings ratio, dividend yield or free cash flow basis – should be reasonable and at least in line with peers in the same sector

For managed funds, the criteria for selection includes many factors, some of which are:

  • The fund management company must have a long-established and consistent record of managing investments well
  • A stable investment team
  • The senior individual investment manager responsible for a portfolio should have an established track record in managing the asset class for which they are making decisions
  • They should be high conviction
  • There should be different investment styles across funds

Get in touch

To book your complimentary initial consultation with a Crystal Wealth professional, contact us today.