How to purify your approach to investing

From its earliest days, investing has progressed from those who claimed to be able to pick ‘winning’ stocks to mass-market products such as ‘fixed trusts’ (in the 1950s and 1960s) and ‘managed funds’ (emerging in the 1970s and 1980s) to ‘platform’ products which gained widespread use in the late 1990s .

Iterations introduced innova­tive benefits for investors. Simul­taneously, however, the fees they commanded quietly nibbled away at returns.

Financial commentators soon highlighted these costly ‘impurities’ and used the media to warn of the expensive traps that faced the unwary (and still do).

Investors came to realise that those products that declare values in ‘unitised prices’ obscure the real costs of fees. Explanations such as ‘your fees are contained in the difference between the buy price and sell price of your units’ come across like Greek to many. Wise investors began to look for something better, something more transparent. The next evolution – the ‘managed discretionary account’ – has become not so much a product as a service.

The team here at Joseph Palmer & Sons were early to develop and enhance this service, which we refer to as the Palmer Discretionary Account (PDA). It enables investors to access an opportunity that has been distilled to remove many of the costly impurities that hobbled earlier investment options.

First, no commissions or trailing fees are paid. Second, each managed account captures its own tax advantages (instead of being shared with others in, say, a unitised product). Third, the fees are both transparent and remarkably low. Fourth, all investments are owned in the investor’s name or entity (not part of an amorphous whole).

Managed discretionary accounts at Joseph Palmer & Sons come with ten substantial benefits:

1. Over 143 years’ history and ex­perience of investing (by far the longest in Australia).
2. Clients discussing and setting a tailored investment strategy with a personal expert.
3. Only then is discretion given to the firm to invest within the agreed strategic guidelines.
4. Investment selection governed by the firm’s relative value analysis process to seek un­dervalued securities (devoid of emotion or speculation).
5. Creation of comprehensive portfolios of directly owned securities diversified across asset classes using tactical asset allocation for safety.
6. Administration uses a leading technology platform with every­thing accessible online 24/7.
7. Phone access to your account manager together with regular reports and tax records.
8. Highly intensive and independ­ent research of both Australian and international stocks.
9. Sophisticated risk-management processes, such as tactical asset allocation, used to protect wealth.
10. All investment procedures in line with the Integrity Rules of the Stock market and over­seen by an independent invest­ment committee.

With all the impurities filtered out and a fee structure that, for a client with an average size portfolio, is less than one per cent of assets (and frequently lower), it might be time to discuss the purified wisdom now available to you from this venerable firm.

In short, your Palmer Discretionary Account is the end result of a positive evolu­tionary process that enables you to delegate investment responsibili­ties to a long-established firm that uses ‘safe hands’ to deliver the very best in personalised service. The way it should be.

Invest smartly, reduce fees, improve results.

Disclaimer & General Advice Warning

This publication has been prepared by Joseph Palmer & Sons (ABN 29 548 490 818) an Australian Financial Services Licensee (AFSL 247067). Whilst the information contained in this publication has been prepared with all reasonable care from sources, which Joseph Palmer & Sons believes are reliable, no responsibility or liability is accepted by Joseph Palmer & Sons for any errors or omissions or misstatements however caused. Any opinions, forecasts or recommendations reflects the judgment and assumptions of Joseph Palmer & Sons as at the date of publication and may change without notice. Joseph Palmer & Sons, their officers, agents and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law. This publication is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any securities recommendation contained in this publication is unsolicited general information only. Joseph Palmer & Sons are not aware that any recipient intends to rely on this publication and are not aware of the manner in which a recipient intends to use it. In preparing our information, it is not possible to take into consideration the investment objectives, financial situation or particular needs of any individual recipient. Investors must obtain individual financial advice from their investment advisor to determine whether recommendations contained in this publication are appropriate to their personal investment objectives, financial situation or particular needs before acting on any such recommendations.