Constructing the ideal investment portfolio for a client requires three things:

• In-depth knowledge of financial markets.

• An accurate assessment of the client’s financial position.

• A good understanding of the client’s personality and preferences.

Putting all three of these together is the central role of your Classic wealth manager.

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Evidence suggests that investors who do not understand markets or themselves as well as they should do great harm to their portfolios over time. What seems to be an attractive strategy through the rear view mirror often disappoints in real life, prompting changes that again fail to hit the mark.

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But what to do? Classic Private Wealth guides every client through a thorough investment planning process. Acquiring a firm grasp of the investment strategy helps the client to make wise decisions and, importantly, cements the trust and confidence so necessary for optimal long-term results. In the long run exposure to the right asset classes will drive the behavior of a portfolio. Reliably beating inflation requires a  judicious mix of growth assets, which in turn makes planning for volatility very important.

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Classic Private Wealth will, first of all, determine how much should be invested to provide for short-term needs (invested with low volatility as a primary goal) and how much for longer term needs (invested with performance as a primary goal). We then ensure that the money is managed according to appropriate mandates by competent fund managers.

 

The future is full of surprises and investment outcomes are seldom certain. For us, narrowing the range of possible investment outcomes is the key to making sure our clients’ desired goals are met. Three strategies in particular help us to achieve this:

• Including less volatile assets.

• Hedging through derivative strategies.

• Very wide diversification.

 

The third strategy is very important to ensure consistent results over time – Classic Private Wealth is convinced that most individuals in South Africa should have significantly more diversification in their portfolios.