Financial Planning Approach - IPP Financial Advisers

FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

1

ESTABLISH A
CLIENT-PLANNER
RELATIONSHIP

Your IPPFA Adviser will work towards a ‘meeting
of minds’ to understand your financial
aspirations. With this compatibility
established, your adviser will be able to work
with you towards meeting your expectations
and achieving your financial goals.
FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

2

CLIENT DATA GATHERING
AND DEFINING GOALS
& OBJECTIVES

Your IPPFA Adviser analyses your present
situation by collecting and assessing all relevant
data - your assets and investments, wills,
insurance policies, tax returns, employee benefits,
sources of your income and your expenses
Your adviser then helps you identify financial and
personal goals and ensures that they are realistic.
FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

3

ANALYSIS OF
CURRENT
FINANCIAL PLAN

Your IPPFA Adviser focuses on specific problems
that stand in the way of those goals.
i.e. Inadequate cash flow, unnecessary tax
payments, inappropriate insurance coverage,
and investments.
FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

4

DEVELOPMENT OF
COMPREHENSIVE
FINANCIAL PLAN

Your IPPFA Adviser prepares a written plan
comprising IPPFA's proprietary and proven
modules, namely:

Wealth Protection
Wealth Accumulation
Wealth Management
Wealth Distribution
FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

5

IMPLEMENTATION
& EXECUTION

Your IPPFA Adviser will offer ways to
implement the recommendations or
alternatives in co-ordination with other
specialists outside of IPPFA (for example, experts
in offshore tax), in order to increase your
cash flow and optimise your capital gains.
FINANCIAL

PLANNING

PROCESS

At IPPFA, we employ a Six-Step Process that favours
needs-based advice. We apply this process taking
into consideration our clients’ needs around Wealth
Accumulation, Wealth Protection, Wealth Management
and Wealth Distribution via Wealths model.

6

REGULAR
REVIEW &
UPDATE

With IPPFA, you will benefit from regular reviews
and revisions of your plans. Your plan should be
updated to account for changes in your life, in
current economic conditions and in new
investment opportunities. Periodic reviews
show the progress you are making in reaching
your goals.

OUR

FOUR

WEALTHS

MODEL

1

WEALTH ACCUMULATION

Wealth Accumulation is important to ensure
that you amass sufficient funds to meet
your life goals and plan for a comfortable
retirement. Careful planning helps to
prioritise objectives and, with the right
execution, helps to optimise income,
budgets, saving and investments.
OUR

FOUR

WEALTHS

MODEL

2

WEALTH PROTECTION

Wealth Protection is the foundation of
financial planning. It safeguards your wealth
and future earning capacity and ensures
that your financial goals are not side-tracked
or delayed due to unfavourable life events.
A complete evaluation considers financially
detrimental concerns such as Premature Death,
Disability, Major Diseases, Hospitalisation and
Healthcare Costs, Accidents, Personal Property
Loss, Theft and Restoration to Damaged
Property to ensure that you and your family
remain protected should such events occur.
OUR

FOUR

WEALTHS

MODEL

3

WEALTH MANAGEMENT

Wealth Management involves strategically
and efficiently managing your accumulated
wealth, taking into consideration your assets,
investments and tax status. An effective
strategy is imperative to meeting your financial
objectives and may even shorten the time it
takes to meet them.
OUR

FOUR

WEALTHS

MODEL

4

WEALTH DISTRIBUTION

Wealth Distribution ensures that your wealth
is passed on to loved ones and through
philanthropic activities according to your wishes.
The appropriate estate planning services may
include wills, trusts, holding companies,
joint ownership, tax planning and other legal
instruments. With the right implementation,
you enjoy peace of mind knowing that your
wealth is efficiently distributed to your
intended beneficiaries.

INSURANCE

SELECTION

Our insurance selection philosophy is to identify
and choose the most competitive insurance plans
across plan types (e.g. Whole Life, Investment Linked,
Term Insurance, Endowment, Health or
Medical). In determining competitiveness, we
adopt a proprietary methodology that considers
costs, benefits, features and results from
quantitative assessment.

LIFE PRODUCT DEPARTMENT

Our Life Product department assists Advisers with
research on insurance plans and creating an
approved recommendation list. Adopting an
unbiased approach, our team conducts detailed
analysis while ensuring breadth and depth in
product coverage in the selection of insurance
plans that best fit our clients.

1

SELECTION

For all new insurance plans launched by our
institutional providers, our Life Product
department carries out due diligence to ensure
the insurance plans selected are suitable for
fulfilling the needs of our valued clients.
INSURANCE

SELECTION

Our insurance selection philosophy is to identify
and choose the most competitive insurance plans
across plan types (e.g. Whole Life, Investment Linked,
Term Insurance, Endowment, Health or
Medical). In determining competitiveness, we
adopt a proprietary methodology that considers
costs, benefits, features and results from
quantitative assessment.

LIFE PRODUCT DEPARTMENT

Our Life Product department assists Advisers with
research on insurance plans and creating an
approved recommendation list. Adopting an
unbiased approach, our team conducts detailed
analysis while ensuring breadth and depth in
product coverage in the selection of insurance
plans that best fit our clients.

2

ASSESSMENT

The findings from the due diligence
assessment will then be presented to
the Life Product committee for approval.
INSURANCE

SELECTION

Our insurance selection philosophy is to identify
and choose the most competitive insurance plans
across plan types (e.g. Whole Life, Investment Linked,
Term Insurance, Endowment, Health or
Medical). In determining competitiveness, we
adopt a proprietary methodology that considers
costs, benefits, features and results from
quantitative assessment.

LIFE PRODUCT DEPARTMENT

Our Life Product department assists Advisers with
research on insurance plans and creating an
approved recommendation list. Adopting an
unbiased approach, our team conducts detailed
analysis while ensuring breadth and depth in
product coverage in the selection of insurance
plans that best fit our clients.

3

ANALYSIS

The Life Product department will conduct
a detailed comparison analysis for each
approved plan type. This comparison analysis
employs quantitative and qualitative assessment
methods to ascertain the placing of each plan.
INSURANCE

SELECTION

Our insurance selection philosophy is to identify
and choose the most competitive insurance plans
across plan types (e.g. Whole Life, Investment Linked,
Term Insurance, Endowment, Health or
Medical). In determining competitiveness, we
adopt a proprietary methodology that considers
costs, benefits, features and results from
quantitative assessment.

LIFE PRODUCT DEPARTMENT

Our Life Product department assists Advisers with
research on insurance plans and creating an
approved recommendation list. Adopting an
unbiased approach, our team conducts detailed
analysis while ensuring breadth and depth in
product coverage in the selection of insurance
plans that best fit our clients.

4

PROPOSAL

The plans that best meet our stringent
selection criteria will make the
recommendation list.

INVESTMENT

METHODOLOGY

Our investment team takes a top-down, multi-asset
approach to investment planning. We help clients
navigate through adverse markets and capitalise on
attractive investment opportunities across asset classes,
guided by our experience and our proprietary Market
Analysis model, which combines fundamental, technical
and quantitative analyses.

MARKET ANALYSIS AND
ASSET ALLOCATION

V.E.S.T analysis is a systematic market analysis
methodology employed by our investment team to assess
and make sense of market conditions. This methodology
applies a combination of primary and secondary research
(economic data analysis, aggregated forecasts from
economists and market specific analysts). The
combination of fundamental, technical and quantitive
analyses in V.E.S.T helps our team to determine when
markets are over-valued (bubble state) or under-valued and
to decide on the eventual asset allocation.

1

VALUATION

The fundamental valuation of all
major markets.
INVESTMENT

METHODOLOGY

Our investment team takes a top-down, multi-asset
approach to investment planning. We help clients
navigate through adverse markets and capitalise on
attractive investment opportunities across asset classes,
guided by our experience and our proprietary Market
Analysis model, which combines fundamental, technical
and quantitative analyses.

MARKET ANALYSIS AND
ASSET ALLOCATION

V.E.S.T analysis is a systematic market analysis
methodology employed by our investment team to assess
and make sense of market conditions. This methodology
applies a combination of primary and secondary research
(economic data analysis, aggregated forecasts from
economists and market specific analysts). The
combination of fundamental, technical and quantitive
analyses in V.E.S.T helps our team to determine when
markets are over-valued (bubble state) or under-valued and
to decide on the eventual asset allocation.

2

ECONOMIC

The current state of global economies
and future expectations.
INVESTMENT

METHODOLOGY

Our investment team takes a top-down, multi-asset
approach to investment planning. We help clients
navigate through adverse markets and capitalise on
attractive investment opportunities across asset classes,
guided by our experience and our proprietary Market
Analysis model, which combines fundamental, technical
and quantitative analyses.

MARKET ANALYSIS AND
ASSET ALLOCATION

V.E.S.T analysis is a systematic market analysis
methodology employed by our investment team to assess
and make sense of market conditions. This methodology
applies a combination of primary and secondary research
(economic data analysis, aggregated forecasts from
economists and market specific analysts). The
combination of fundamental, technical and quantitive
analyses in V.E.S.T helps our team to determine when
markets are over-valued (bubble state) or under-valued and
to decide on the eventual asset allocation.

3

SENTIMENT

Consumer confidence of major economies
and the overall attitude of investors towards
markets and investing.
INVESTMENT

METHODOLOGY

Our investment team takes a top-down, multi-asset
approach to investment planning. We help clients
navigate through adverse markets and capitalise on
attractive investment opportunities across asset classes,
guided by our experience and our proprietary Market
Analysis model, which combines fundamental, technical
and quantitative analyses.

MARKET ANALYSIS AND
ASSET ALLOCATION

V.E.S.T analysis is a systematic market analysis
methodology employed by our investment team to assess
and make sense of market conditions. This methodology
applies a combination of primary and secondary research
(economic data analysis, aggregated forecasts from
economists and market specific analysts). The
combination of fundamental, technical and quantitive
analyses in V.E.S.T helps our team to determine when
markets are over-valued (bubble state) or under-valued and
to decide on the eventual asset allocation.

4

TECHNICAL

Readings from IPPFA's proprietary
technical indicator and other relevant
technical analysis tools.

INVESTMENT/FUND SELECTION

The investment selection process for allocation involves a combination of quantitive and qualitative analysis of funds globally. Our investment team currently filters through over 700 regional and global funds to identify the best for each core category. These best funds make up our recommendation list.

PORTFOLIO CONSTRUCTION

Model portfolios have been constructed in-house based on the volatility target approach. The model portfolios cover varying levels of risk tolerance and, through further assessment, they can be tailored to suit unique requirements and preferences.

PORTFOLIO MANAGEMENT

Our advisers regularly monitor our clients’ portfolios to ensure that their respective strategic asset allocation remains intact. Rebalancing will be triggered when the apportionment within the portfolio moves away from its original calibrations.
In addition, on an ongoing basis, our investment team updates advisers with house views to provide them with insights to help their clients consider underweighting or overweighting in markets that are overvalued or undervalued. Our monthly Capital Watch newsletter provides clients with a comprehensive summary and opinion on global economies and markets.

ALBERT LAM

Director of Private

& Accredited Clients

DAVID MOK

Director of

Investment &

Research

INVESTMENT

COMMITTEE

Our investment committee comprises five investment professionals and is led by two veterans with combined investment and market experience of over 40 years. They are a team dedicated to conducting macro trend, market and risk analyses as well as determining and implementing asset allocation, fund selection and portfolio construction.