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Experience has shown us that investors sometimes fall short of their investment goals and they can’t always understand why. Blame then gets levied at either the investment house or the advisor who placed the clients’ money in certain funds. We also know from experience that advisors are only trying to do their best by clients and do not willingly make mistakes - especially when investing clients’ money.

The investment world is far more complex and intricate, with unseen forces, that the ‘braai experts’ are completely unaware of.

So, the task for the 1.618 Group was two-fold: 1) How do we protect our brokers with investment decisions, whilst also protecting our clients and the investment mandate? And, 2) How do we bring these two agendas closer together to create a harmonious ratio for both clients and advisor?

We have developed 6 model portfolios that we are strongly advocating - both to our advisor force and to our clients. After extensive research and deliberation, we have put together 3 integrated solutions and 3 non-integrated solutions that will meet almost every risk appetite and return profile for clients, especially in the retirement space. These decisions have not been based on a ‘smartie box’ selection; but rather on a multi manager approach – combining both local and global investment minds, research and capabilities into a single fund known as a ‘Model Portfolio’.

For a client this means that your investment is not tracked into a single portfolio manager, but the risk and reward is spread across a selected leading group of asset managers. Whilst one asset manager might favour a certain sector, the other prefers other strong return themes. This ensures smooth and consistent growth across a diverse portfolio which also softens market fluctuations should they occur in certain sectors. The collective fee in a model portfolio is also lower than a single based asset manager whilst giving you access to all the managers’ research and thorough investigations.

With our advisors being encouraged to follow these models, our intention is to build trust through solid advice, great returns and allowing our advisors to pass information on from the leading asset managers in each sector.

The role of a financial advisor is a unique one to offer clients solutions to risk and investment problems; sheltering the client from the unknown pitfalls in the financial world. Our belief is that these model portfolios provide that shield of armour for our advisors and robust protection for your hard-earned investment. As always, with 1.618 Group, we are looking to perfect the advice and to keep weaving the ‘Golden Thread’ into your complete financial portfolio.

Stay tuned for ‘news bites’ on our various model portfolios in the coming weeks.

From the 1.618 Investment Committee.