Do you have an investment portfolio that you created years ago but haven’t spent much time monitoring? Or have you engaged the services of a financial advisor in the past… just to be disappointed with the outcome?

Maybe you have funds in a term deposit earning very low interest… or you’ve received an inheritance and you don’t know what to do with the money? As part of our personal wealth management services we can help you make the most of your savings or your current investments. We talked to Cayle Petritsch, Director and Wealth Specialist about North Advisory’s approach to building an investment portfolio.

The key is diversity

Diversification is all about spreading the risk of your investments across a range of different asset classes to create a well-balanced portfolio.

We don’t want to put all your ‘financial’ eggs in one basket! This is why diversification is a smart investment strategy. It tends to provide consistency in returns and offers some protection against market fluctuation.

Cayle explains,

“When people first come to us, often we find they are 100% invested in cash or 100% in Australian equities.

And while 100% in Australian equities has been okay for the last five to six years with continual solid growth and positive dividends… you are missing out on international growth.

You don’t have exposure to some of the major commercial corporations… companies like Google, Facebook, Disney or Alibaba.

So, having a diverse portfolio is really important. If the value of your Australian equity was to decrease, your international exposure could provide you the right balance.

When we have clients who have built their own portfolio, it is often diversification that is the main issue. We can help develop their portfolio to really suits their needs… with a combination of Australian and international equities along with cash and bonds. The portfolio is set up to manage the risk based on what the client is willing to accept.

For instance, if our client is already retired, we wouldn’t want their assets to hold too much risk; we need them to have a steady, stable income stream, so we build their portfolio accordingly. But, if someone is in their 30s, they can carry more risk in their investments. They have many years until retirement and more flexibility to ride the wave of ups and downs in the market as their portfolio grows.

This is where diversification is key. We tailor the portfolio to the individual client. Their risk profile and even specific ethical choices are all taken into consideration.”

If you compare our services with that of other financial planners, you will notice a significant difference. Other advisors might look at your current portfolio and sell everything it holds, then set you up with assets according to their approved product list. At North Advisory we are not aligned with any institution, so we can offer you a solution that truly suits your needs. Our aim is to achieve a positive result for you… this is always our main focus.

It’s also important to note that you don’t have to invest all the money you have in savings. We understand that cash carries the least risk… but it also offers the lowest return. We can split your investment across a variety of selections… some in the safest option of cash, then some in higher risk shares that could offer a higher level of return.

Record low interest rates

Right now we are seeing record low interest rates… term deposits of around 1% look like they are here to stay for a while. So, even though cash is relatively risk-free, it is essentially going backwards when we consider that inflation is close to 2%. Cayle says,

“Having money in term deposits is safe, but if you want to achieve better returns, you will have to place your money elsewhere.

At North Advisory we have a fixed income solution. It sits between money in the bank and money in the market. It carries a little more risk than cash but the reward can be there. It is worthwhile considering taking on a fraction of risk to help build your wealth and achieve a better financial outcome.”

We believe in transparency

Whether your investments are part of your superannuation or a standard investment portfolio, we offer you direct equity. This means you own the shares within your portfolio, unlike a managed fund, where often you only own ‘units’ within the fund… so you don’t truly know exactly where your money is invested. Cayle discusses this in more detail:

“We believe in full transparency, so that you understand and can keep up to date with the shares you own. Staying connected gives you the opportunity to follow the market and know what’s happening day to day.

In a managed fund, you are part of a large pool of investors… you might receive quarterly reports but the information is never live. With our system, you can access web-based data when you want and watch your investment activity.

We partner with a team of dedicated portfolio managers to make sure your investments are continously reviewed for performance. There’s no set and forget with our products. We keep you updated and can make adjustments as they are needed.”

To find out how we can help you with your personal wealth management, contact our team today. Read more Personal Wealth Management articles.

Grow your wealth
and guarantee your future.

The key is diversity

Record low interest rates

We believe in transparency

Create wealth

Maximise wealth

Grow your wealth and guarantee your future.

It’s time to diversify

The key is diversity

Record low interest rates

We believe in transparency

Create wealth

Maximise wealth

Grow your wealth
and guarantee your future.