Direct Investment Preference

At Indian Ocean Financial Services we prefer to invest our client’s directly in the available asset classes, Cash, Fixed Interest, Property, Australian shares and International Shares, rather than via a managed fund structure.

There are a number of advantages of investing directly including:

• Our ability to design strategies that are customised to the specific needs of our clients.
• Reduction in investment and administration cost by taking away the fund managers expenses.
• Low brokerage fees starting as little as $10 per trade for ASX listed shares.
• Our ability to manage capital gain tax consequences of selling and or rebalancing.
• Increased flexibility and control of the investment portfolio.
• To take into account your preferences like ethical shares or investment exposure in Western Australian companies.
• Taking full advantage of corporate actions including rights, bonus shares and options.
• More choice in investment and tax reporting.
• Quicker transaction processing time, including buys and sells

 

Despite our direct investment preference we do appreciate the fact that there are occasions where a managed investment structure should also be used in our client’s portfolio.  Some of the reasons of using a managed fund could be are :

• To access the skills and knowledge of certain fund managers, like an fund manager specialised in ethical investment or technology.
• To gain exposure to investments that requires larger sums of capital, like commercial property.
• To access markets that requires certain licenses to operate, like China.
• To access products that are not on offer in the direct investment markets, like the internally geared share funds.

 

During our financial planning process we will discuss the available options with you and evaluate any investment choice by considering your investment risk, your tax position and your preferred choice and involvement.

Separate Managed Accounts

Separately Managed Accounts (SMA) is one of our customised portfolio solutions for clients that like to invest directly into the stock market, but don’t want the responsibility of managing their portfolio. A SMA allows our clients to gain exposure to shares across a range of professional managed investment models, according to our client’s personal and financial goals.

The advantages of an SMA are:

• Direct share investment exposure while being professionally managed.
• Ability to gain internet access to your portfolio and see the individual stocks out clients holds online.
• Reduction in investment fees by taking out the extra level of fund managers
• Very cheap share trading cost due to the ability to net any buys and sells of different investment models within your portfolio while accessing wholesale rates.
• Direct Access to the skills and knowledge of the best research houses available in Australia including, but not limited to:

Bennelong Asset Management Lonsec Morningstar van Eyk Fat Prophets

 

Customised Share Recommendations

Indian Ocean Financial Services customised share recommendations is tailored to clients that which to invest directly in the share market and would like to maintain the responsibility to management of their portfolio. Within this solution clients have the option to:

• Use our services to enjoy personal advice on individual ASX listed company as well as the creation of a portfolio of quality Australian companies. On request or each halve yearly we provide portfolio recommendations including any buy and sell of shares resulting from our internal and external research and take care of the transactions and paperwork. 

• Combine our customised share recommendations with our Virtual Administration Platform solution and get 24 hours online access to your investment portfolio.

 

This power full combination allows us to take care of all your paperwork, corporate actions, share trading transactions and tax reporting for you and your accountant. Furthermore we are able to add our clients cash account transactions, existing shares or managed funds or any exotic assets like their Crayfish pots or real estate property to your portfolio to produce a neat overall investment portfolio report.  This solution is ideal for the larger Self-Managed Superannuation Funds as our platform allows direct exports to your accountant SMSF auditing and tax return software. Examples of some of the requested share portfolios we see demand in are:

• The income portfolio
• The ethical investment portfolio
• The highly franked dividends portfolio
• An all-Western Australian company portfolio

 

Portfolios designed to achieve results

As part of our financial planning process we talk and discuss your investment preferences and tolerance to investment risk (Investment risk is the chance that actual performance of a share or portfolio is different from the expected performance). When doing this we group your objectives into short, medium and long term and much each group with the level of risk you are able to accept. This process is called risk profile testing and each recommendation involves placing your objective on the risk/return graph as below:

 RISK PROFILE

Spectrum of Return/Risk (For illustrative purposes)

  

When calculating our clients client risk profile, we take into account our risk profile tool outcomes, your goals and objectives, previous experiences and income security.  We then use our investment knowledge to develop and design investment strategies that make use of a process called diversification to enhance returns while controlling the investment risk.

To optimise the potential outcomes even further we strongly recommend reviewing your portfolio frequently so we are able to rebalance and adjust your investments. This service is offered as part of our normal ongoing services.

Monitoring services

In addition to the above mentioned ongoing service to review your investment our senior advisers can also offer a monitoring service. This service include pro-active engagement from our advisers to keep an eye out of any changes of recommendations, corporate actions or legislative changes affecting the shares in your portfolio. If a change occurs we will contact you as soon as possible with a potential solution to manage the risk.  For more information please contact one of our senior advisers.

We can help you with ...

• Cash flow and taxation planning
• Wealth creation and negative gearing
• Salary packaging and strategy planning
• Investment structuring and planning
• Superannuation and retirement planning
• Personal insurance advice
• Risk assessment and wealth protection
• Succession and estate planning

 

What is your Industry?

• Professionals
• Blue Collar Workers
• Primary Industry (Farming, Fishing and Associated)
• Teachers
• Small Business Owners