Portfolio Management
With the globalisation of the world economy and the accumulation of wealth and economic power in emerging markets, investors today need to have a cost efficient way of accessing that wealth. The new sources of economic growth along with growing environmental awareness, are creating pressures on resources, from oil and water to metals and crops.
Strategic asset allocation is by far the most important determinant of portfolio performance. Allocating your capital across a range of different asset classes, such as cash, fixed interest, property, equities and commodities on a truly global basis can give you a better return for less risk than investing in one asset class or geographic sector alone.
The optimum split between these asset classes depends on your personal objectives for the portfolio and your attitude to risk, therefore we have researched and designed a range of risk-graded investment portfolios for Provisio which incorporate all the main asset classes available to investors today.
What differentiates Provisio is our belief that “Passive”, Exchange Traded Funds (ETFs) should form the bedrock of these portfolios rather than more expensive conventional “index tracking” or “Active” managed funds. Fashions come and go with increasing speed, with the true innovations often getting lost in the heat and the noise but ETFs are an idea whose potential to enhance investment portfolio performance and simultaneously lower costs make them hard to ignore. ETFs offer near perfect market equalling returns from any given market, sector or index all for a fraction of the cost of a traditional index tracking or actively managed fund.
Regular rebalancing of your portfolio along with occasional “tactical” asset allocation changes, ensures that your portfolio maintains its risk rating regardless of the performance of each of the underlying asset classes.
