Understanding your total wealth distribution will enable you to make investment decisions that consider all critical factors.

The first step of our Investment Philosophy is to assess your situation as it is now. By looking at your current wealth and where it is invested, we can see if there are any gaps, where you might be over-exposed to risk and where there could be missed opportunities to make better returns. This also lets us take a closer look at how you think about your wealth.

By conducting a Total Wealth Review, we can also see how you intuitively group your assets into different categories. In our experience, most people tend to group their assets into three areas:

Personal Holdings – these are assets that maintain your lifestyle such as cash reserves, your main home or a collection of fine art.

Investment Portfolio – this is a diversified selection of assets designed to achieve long-term growth while taking an appropriate degree of risk.

Business and Opportunistic Investments – these are usually assets in which you feel you have some expertise or strong beliefs. Often you are directly involved with these assets – so they can be associated with who you are or what you do for a living, and your wealth aspirations. It may involve your business or entrepreneurial activity so you have some degree of direct risk control or decision-making.

Usually, people tend to invest too much in Personal Holdings and Business and Opportunistic Investments, which are both driven by emotion or conviction. However, Investment Portfolios are based on discipline and rationality and are often not developed to their full potential.

The result is that you end up with an unbalanced group of assets, which can leave you exposed to isolated risks in certain areas and missing out on opportunities in others. For example, holding more of your wealth in cash outside your Investment Portfolio could see you fail to grow your wealth in the long term.