Individual Solutions for Every Client
At Veracity Wealth Planning we tailor individual solutions for every client in recognition of the fact that every client is different and has particular investment needs. However while there is no “one size fits all” investment solution, we do follow an investment framework.
- An investment portfolio is a means of reaching what is most important – your goals and objectives
- A disciplined approach underpins successful investing
- Diversification leads to more consistent outcomes
- In investing for the long term – not speculating
- Risk & return are related
These beliefs form the core of our approach and are important for you to understand.
Goals & objectives
In keeping with our strategic advice approach, we believe it is important to completely understand not only our clients’ current situation, but where they would like to be in the future. Once we understand our clients’ needs and objectives, we are able to take a longer term view of their overall situation to ensure that their investment portfolio will provide them with what they need, over their entire lives.
We believe that truly successful investing requires a highly disciplined approach. It is definitely not about chasing the highest return in any one year, but is about taking a strategic approach, avoiding the all-too typical mistakes that erode wealth. An example of taking a disciplined approach is not reacting to short-term performance but, rather, understanding that some markets, managers or securities may not perform as well as others (and may even go down) from time to time. This is the natural cycle of events and reacting to this when it is unnecessary can significantly destroy value. Instead, we believe in regular reviews and rebalancing to keep your portfolio on track.
Diversification is a genuine way of reducing uncertainty in your portfolio by spreading investments and not taking a concentrated approach. Whilst most people understand and accept the concept of not putting “all your eggs in one basket”, many do not implement it in their investment portfolio. At Veracity Wealth Planning we look to diversify in many ways:
- Across multiple asset classes
- Across multiple investment managers
- Across multiple securities
This has the effect of reducing overall risk and lessens the impact that any single event can have on your portfolio. A well diversified portfolio can offer a much smoother pattern of returns and reduces the “roller coaster” ride.
Investing for the long term
At Veracity Wealth Planning we believe in taking a longer term approach to investing. Taking a longer term approach does not mean that our clients will receive a ‘set and forget’ investment portfolio - on the contrary, we are constantly monitoring and managing our portfolios. However, we don’t expect to have to make changes to portfolios regularly, as they have been constructed carefully and with a view to the future in the first place.
We believe in minimising the risk that we take with a clients’ portfolio. We are not out to deliver a short term return but rather we employ a careful, considered approach. We do not speculate with our clients’ money.
Risk & return
We understand that risk has a different meaning for each investor but when we look at portfolio risk we consider the volatility, or the degree to which investments fluctuate. Volatility and return are related and, in general, investments with higher volatility can be expected to have higher returns (a premium for accepting the greater fluctuations) whereas lower volatility investments are expected to offer lower returns, reflecting their greater stability. This is called the risk/return trade off, and the range of expected returns varies across different asset classes. When we construct clients’ portfolios we consider the risk/return trade off by balancing volatility and expected return to not only meet your goals, but also smooth out the peaks and troughs.
Our overall philosophy
At Veracity Wealth Planning, we believe in constructing a common-sense, tailored financial plan. We are not interested in the latest fads or bells and whistles, but rather we are interested in what works.
We understand that everyone’s situation is unique and that there is no ‘one size fits all’ approach to investing. We also understand that we are embarking on a journey with our clients and that it is critical that they understand why we are making decisions and recommendations, and what we are looking to achieve with them. We see it as our role to give our clients comfort that they can rely on us to have their best interests at heart. We will ensure that they understand everything that is happening with their finances, and we will educate them about their financial role.
Every day clients are bombarded with different news and commentaries in the media. At Veracity Wealth Planning, our job is to analyse events around the world that can affect our clients, cut through the noise, make decisions with our clients’ interests at their core, and to give our clients the best possible chance of achieving their goals and enjoying their journey.
Our investment process involves 3 steps:
- Portfolio construction – Selecting managers and blending them in a way that meets the desired outcome of the client.
- Implementing the strategy – Implementing the portfolio in the most market efficient way.
- Manager review process – Finding managers with consistent investment process and an ability to provide sustainable, tax effective returns.
This process allows us to take a structured and consistent approach to building client portfolios and utilise our research, experience and knowledge for the benefit of all our clients. Read more about us.