“Personalisation” has become one of the most overused words in modern investing. Is it merely a buzzword, or is it something investors can genuinely expect from a professionally managed share portfolio? In reality, true one-to-one portfolio customisation, where every client holds a completely unique set of shares, is impractical. No portfolio manager can efficiently run hundreds of bespoke portfolios simultaneously. That’s why model portfolios exist: they allow managers to focus on a curated universe of shares and apply changes efficiently across clients.
But here’s the important part: efficiency does not have to come at the expense of personalisation.
Beyond shares: Investing in the story
A well-constructed share portfolio should feel personal because it’s built around a client’s purpose, preferences, and understanding. Every company included should be discussed, not just as a ticker symbol, but as a business with a story, strategy, and purpose. When clients understand what they own and why, the investment becomes more meaningful.
This is also where personal preference enters the picture. If a client has strong feelings about a particular company, whether due to ethics, experience, or personal philosophy, a skilled portfolio manager can simply remove it from the portfolio. This ability to tailor around the client’s views adds a layer of ownership and comfort that pre-packaged investments cannot match.
Meanwhile, the portfolio manager guides the technical construction, while the financial adviser ensures the client’s expectations and emotions stay aligned with long-term goals. When clients understand the rationale behind investment decisions, they are far more likely to remain calm and invested through inevitable bouts of market volatility.
Why personalisation matters
Assuming the decision to opt for a direct share portfolio, rather than a unit trust, has already been made, several crucial factors still shape the degree of personalisation required.
1. Investment amount and currency
Portfolio size plays a major role. Managing a spread of individual shares can be costly for smaller portfolios. In these cases, ETFs may be used to achieve diversified exposure more efficiently.
Currency also matters: investing in rands versus foreign currency influences how offshore exposure is structured.
2. Purpose of the investment
Every investment should start with a clear intention. Income portfolios look very different from growth-focused ones, and some goals may be better served with structured products, guarantees, or leveraged strategies. Personalisation begins with purpose.
3. Estate implications
The question of “what happens at death” is often overlooked. A well-structured share portfolio should streamline estate administration, not complicate it. When planned correctly, it becomes part of a lasting legacy that is simple for family members to manage.
4. Investment structures
The structure in which the portfolio is held can dramatically affect tax efficiency and future flexibility. Endowments or retirement annuities, for example, may offer tax benefits or asset protection. Failing to plan upfront can lead to avoidable tax consequences later.
5. Personal profile
Beyond risk tolerance, the investor’s unique personal circumstances also influence portfolio design. For instance, company executives must meet disclosure requirements when investing in their own organisations.
6. Risk Profile
Risk is more than emotional comfort with market volatility. It’s also about determining how much risk a client should take, given their goals, financial situation, investment horizon and broader context.
The bigger picture
Personalisation is not just about choosing which shares to include in a portfolio. It’s about tailoring the entire ecosystem around the investment: the structures, the intentions, the tax considerations, the legacy planning, and the emotional journey.
A truly personalised share portfolio reflects the full picture of a client’s life, not just the market opportunities available. And in that sense, personalisation isn’t a luxury. It’s essential.
Our specialists meet your investment needs, no matter how complex, with combined skills spanning diverse capabilities. You can trust them to deliver. Visit Momentum Securities for more.
Disclaimer: This article does not constitute financial advice. Please consult one of our qualified portfolio managers before investing in any product.
Momentum Securities (Pty) Limited is an authorised financial and credit provider. Registration number: 1974/000041/07 | A member of the JSE Ltd | FSB license number 29547 NCR CP 2518.
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