Keep Your Finger on the Pulse of Your Investments
Consolidation is the only way to measure and monitor asset allocation, as well as to measure cumulative exposure and comparative performance across asset classes.
Looking at investment reports or listening to strategic advice from wealth advisors is a far cry from keeping your finger on the pulse of your investments. As a business family, your wealth has been accumulated over generations, with hard work and calculated risks. Apply these guidelines to ensure its survival and growth.
Diversified asset classes and multiple advisors are the complex mosaic that define every business family's investment portfolio. The fundamental principle to track such a complex portfolio is the need for a consolidated view. Consolidation is the only way to measure and monitor asset allocation, as well as to measure cumulative exposure and comparative performance across asset classes.
Up-to-date and Current
Whatever system you use to consolidate investments should be easy to update so that information is current. Periodic reports from wealth advisors will always have a time lag and leave you unable to react to market phenomena. Consider the recent fracas over demonetization or the earlier business and currency impact of Brexit. Only investors with a consolidated, up-to-date view of their wealth were able to mitigate risk and exploit market vagaries. For others, by the time accountants and family offices pieced together the information, the damage was already done.
Secure, Accurate and Unbiased
Using yet another consultant or advisory service to collate and monitor family assets carries the risk of biased investment advice. In addition, some people may not be comfortable with the information exposure or the security risk of using such a service. Technology is the ideal alternative. Store data on a private server and use professionally designed asset management software to ensure secure, accurate and unbiased reporting.
Aids in Decision Making
As a wealth owner you need information, reports and analytics that enable you to make the right decisions. Asset management software should be flexible, allowing you to customize reports and view information as per your needs. Utilize the best metric, the Internal Rate of Return (IRR), to enable comparison of performance across different time periods, different asset classes and multiple advisors.
Have you measured the impact of the 2017 union budget on your investment income and wealth? Have you assessed your asset allocation and exposure, and set targets for the next financial year?
Own your financial data and stay in complete control. Invest in an asset management software that enables you to keep your finger on the pulse of your investments.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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