Choosing the right IMX portfolio for your client

A step-by-step guide on aligning your client's goal to an IMX portfolio and using the portfolio modeller. Further details can be found in the process guide below.

Understanding your client's goal

By understanding your client’s broad investment goals, you’ll be able to identify the most appropriate IMX portfolios.

Questions that can help this process are:

• What is the broad investment goal? Investment growth or regular withdrawals?

• How long is the likely term of investment?

• Is a low/medium/high growth or withdrawal rate required?

• What is your client’s risk tolerance and capacity for loss?

Identify a range of suitable portfolios

Due to the holistic nature of the IMX portfolios in delivering client goals, you should select a range to model in the IMX portfolio modeller.

1. IMX grow or IMX spend portfolios?

If your client’s goal is for investment growth, you can choose from the IMX grow range of portfolios. If it’s focused on taking income, our range of IMX spend portfolios can provide the right option.

2. Level of growth assets?

Our portfolios are managed to a range of growth asset allocations, which we label from ‘very low’ to ‘very high’ to help narrow your selection. Portfolios with higher growth asset allocations will have greater expected return in the long term, but greater risk of losing money. If a client’s goal suggests they’ll need a high rate of return, then starting the comparison with a portfolio that has a greater allocation to growth assets may be more appropriate. The opposite is the case for client goals that require low growth to achieve the outcome.

Compare portfolios using the IMX portfolio modeller

The next stage is to use the IMX modeller to compare the portfolios you’ve identified.

All you need to do is input the client details (some will already be populated from the platform) to the IMX portfolio modeller, including their goals, and select a portfolio from the dropdown menu. You can then model the portfolio and compare it to the others you’re considering for the client. This is a good starting point, but you also have the option to compare portfolios outside your selected range, which may produce results more aligned to the client goal.

Through using the modeller and discussing the outputs with the client, you can identify and recommend the most appropriate IMX portfolio.

Past performance is not a reliable guide to future performance. The value of an investment can go down as well as up and may be less than the amount(s) paid in.