Lesson 3
What you plant now you
will harvest later.
OUR UNIQUE APPROACH
Understanding and education are critical to our client relationships.
Every investment strategy is determined by the unique financial needs of the client and their understanding of the risk/return equation.
Our clients can expect their portfolios and strategies to be aligned to their individual needs.
The BL&A investment philosophy is based on two pillars
THE FIRST PILLAR
The Bucket Program
All investments must reflect the spending requirements and consumption timeframe of the investor. We gain a thorough understanding of the client’s needs and risk profile. With this understanding, we divide the client’s investable funds into 3 ‘buckets’ which represent short, medium and long term investments.
These buckets are separated by ‘Chinese walls’, ensuring that the investment strategy for each bucket is considered separately to the others, and is appropriate to those differing timeframes identified.
THE SECOND PILLAR
The Harvest Program
With portfolio management software, the portfolios of clients are constantly monitored. As market movements affect the short, medium and long term buckets differently, the agreed ratios of the buckets will start to change. The Harvest program not only monitors these changes, but makes small, incremental changes to the portfolio, to harvest the gains from the more aggressive / growth investment bucket and transfer the gain into a more conservative bucket, before markets have the chance to take those gains away.
Every portfolio will require a different bucket ratio and harvest approach based on their investment and cash flow objectives. Once established, the ongoing harvest and review programs ensure that these portfolios continue to grow, adapting to changes in legislation, markets, and the evolving needs of the clients.
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In a world where economic and legislative change is occurring at an unparalleled rate, the clients of Barnett Lilley and Associates will stay abreast of the situation and their portfolio will progress accordingly.