As an investor you may engage an investment firm to execute your transactions while you act in the advisory role. This transaction approach though rich in choice, is also a time intensive process requiring detailed follow up on the various asset classes and the products.
In a transaction model, your portfolio has to be consistently balanced evaluating risk and return for every product. An advisory service will not only understand you as an investor but further tailor investment solutions to suit your needs.
The Asset Advisory Role
Wealth management has evolved from a limited role, which is opportunistic and event-driven to that of a more structured diversified and planned science. The services provided as a par to this science is the Asset Advisory Services.
The main characteristics of the Asset Advisory Services are:
Transparent Advice: by allowing a broad portfolio view with no bias regarding any product or manufacturer.
Asset-Goal Planning: brings in the necessary discipline to make asset allocation work helping you plan for clear goals and ambitions.
Asset Advisory Proposition
Investment firms offering Asset Advisory Services propose the following:
Planning and Profiling
Understanding your goals and what you require enables your advisor to put in place and implement a plan to match your requirements.
Enabled with access to a range of products across asset classes and providers, you will be recommended products that are duly researched, analyzed, and short-listed based on true open architecture.
With the involvement of sophisticated models and tools ratified by the views of best-in-industry expert, you can leverage process expertise.
Alignment of Interest
Where firms offer complete alignment of interest, driven by prudential limits set on exposure to fund houses, manufacturers, product lines.
Fee Based Model
A viable commercial structure, including a fee model based on assets under advice that also aims to reduce transaction overheads.
The Asset Advisory Services cannot be a water tight structure that is unable to offer flexibility to take care of short term opportunities. While it must have a strategic plan in place, it must allow for tactical allocations.