Estate Living Digital Publication Issue 4 April 2015 | Page 36

“These refer to market price movements
that occur between the time when
somebody comes up with an investment
idea and when they get around to
executing it. In a more typical situation,
good investment advice is formulated,
but degrades over time whilst the family
makes its decision and belatedly picks up
on the idea.”

INVESTMENT SAVVY

36

Ask yourself if your family makes
investment decisions like this: investment
ideas are communicated to your family
by your advisor; your family takes this
advice under advisement; the ideas are
forwarded to the family’s investment
committee of whom Uncle Bob is a
member; Uncle Bob is away on a fishing
trip, so it is decided not to rush into any
decisions that he might just oppose
anyway on his return.

nauseum before allowing their advisors
to implement it,” says Alexander. “This
ignores the realities of the market place
and the relative skills and experience of
families and investment professionals.”
“Families should focus on what they do
best, on the many broad issues associated
with family cohesion and the critical issues
that matter most to the long-term health
of the family’s capital, especially risk and
asset allocation strategy. Day-to-day,
week-to-week and month-to-month
investment decisions should be in the
hands of a capable advisor.”

“At Private Client Holdings, we prefer to
manage the affairs of a family in terms
of our discretionary mandate, ensuring
that investment decisions are made on
time, but always remain mindful of our
fiduciary responsibility as trustees where
Everydayspentbeingprudentisadaythat we take due care, skill and caution,”
returns go down, because investment concludes Alexander.
ideas are going stale whilst waiting to be
Contact:
implemented.
Tel: [phone]
“Family members often believe that Email: [e-mail]
they are not doing their job unless they www.privateclient.co.za
review and discuss every action ad