Our Tried and Tested Approach to Tailored Portfolio Construction

Written by Nick Lloyd (Financial Adviser)

What is the first thing you do before making any investment?

Research the market?
Budget how much you can afford to invest?
Assess the level of risk of the investment?

At ITL Financial Planning we always start with a chat. We take the time to understand your values, your goals and the level of risk you feel comfortable with.

So we can work in partnership with you to build a bespoke financial plan that is truly tailored to you and your family, at every stage of your life.

How we construct your portfolio

Our experienced advisers construct your individually tailored investment portfolio based on our tried and tested approach.

We strategically allocate your assets and chose your investments based on:

  • your tolerance to risk
  • your objectives, both short- and long-term
  • your individual needs (returns, liquidity, income vs growth)
  • your situation (size of portfolio, costs, tax considerations)

For example, if you are a wealth accumulator investing in a high tax rate environment, we would seek out investments where income is lower but capital growth is higher.

But if you are in your retirement phase (and in a tax free pension) we would guide you towards high-yielding Australian shares which pay fully franked dividends.

We also give consideration to the allocation of different industry sectors (eg. financials, commodities, consumer staples, healthcare, industrials etc), building your portfolio both from bottom up and top down perspectives (ie. the outlook for each individual company, as well as each industry sector).

And our extensive and ongoing market research includes analysis of charts, statistics and common risk profiles.

A Complete Range of Investment Options

At ITL Financial Planning, there is no one size fits all. We offer a highly personalised service. We tailor your investment portfolio exactly to your needs. In constructing your portfolio we assess every asset class individually. We may include all or some of assets like:

Cash Holding Accounts: We look for cash holding accounts that offer you competitive interest rates, no fees and full online banking, including BPAY.

Term Deposits: We assess the suitability of Term Deposits by reviewing the competitiveness of interest rates (over and above the advertised rates), the size of the financial institutions, strength of their balance sheet, maturity date of the term deposit and their interest payment cycle.

Australian Equities, We don’t aim to try and replicate the ASX200 index, we aim to invest in companies that provide increasing dividends over the long term, balancing both your growth and income needs with your tolerance to risk. Our criteria for choosing stock includes:

  • An industry leading position
  • Good management
  • A history of increasing earnings and dividends
  • As much as possible, predictable earnings
  • Research analyst reports
  • Market movements

International Equities: We look for international exposure that is low cost, well diversified and has the ability to choose geographical areas (if desired).

ASX listed Hybrids: offer fixed interest exposure, equity-like liquidity and regular (quarterly or semi-annually and generally fully franked) income.
Diversification is important with hybrids because these securities are more risky than term deposits and annuities and capital is not guaranteed. But we always educate you so that you fully understand where your hybrids sit in the capital structure and how each hybrid differs.

What do you want your financial future to look like?

Are you ready for us to create for you a personalised portfolio

And a proactive and flexible financial plan that anticipates your future needs and evolves to meet your life challenges?

At ITL Financial Planning our performance speaks for itself and our proven process begins with a thorough understanding of you, your goals and what you want your future to look like.

Talk to us now.

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.