Once a long term investment strategy has been developed and illustrated to a client, the next step is to build the portfolio. When building a portfolio of investments there are a number of generic rules that our Chartered Financial Planners will follow for clients.
The emphasis of this is to ensure that tax allowances are used annually so that charges and taxation is minimised in regards to being a performance drag on the portfolio.
Detailed below are the generic rules all Chartered Financial Planners at OCM will follow in creating an investment portfolio for private clients:-
- Define the balance between saving and living for every client and build a coherent financial plan
- Agree annualised return “outcome” required on the portfolio
- Ensure there is an adequate emergency fund
- Build a tax strategy to ensure all allowances are utilised annually and tax drag minimised.
- Ensure where applicable that the investment strategy encompasses the estate planning objectives
- Ensure the portfolio of assets that underpins the strategy is managed and reviewed
- Ensure you and your adviser review and adjust the objectives as you get older
As always, the structure of any portfolio is subjective and individually created with the asset management decisions managed centrally. No one solution is recommended above another and each client undertakes a holistic review to define objectives and suitability for any financial solution that is detailed.
Proactive On-going Management
OCM Asset management which is part of OCM using our Innovative and proprietary investment style called “Outcome Based Investing” will manage the investment strategy of the assets in the following manner:-
- Manage the assets to deliver the defined outcome on a rolling month by month basis averaged out over three years;
- Focus on protecting capital against market shocks and significant falls as in 2008 and 2001 by using cash as a hedge against risk when we feel necessary;
- Proactively managing the assets on a contribution theory basis to take profits when achieved and try to buy assets when value is perceived.
For further detail on our innovative investment style please click on the brochure link to your right on the screen.