Building and protecting wealth in an era of high inflation

Ingrid Micallef is Head of Products and Marketing at MeDirect Malta

Continuing to thrive financially in a period of market uncertainty requires a careful assessment of investment strategies and portfolios.

Understanding market dynamics is never easy and deciding what the best course of action is can be a daunting prospect.

One of the options that is now readily available in Malta is Discretionary Portfolio Management. This is, in fact, a service which has existed for many years but was previously only available to high-net-worth individuals. That is, until MeDirect democratised it at the start of 2023, making it available from just €100. As with any investment product, a Discretionary Portfolio Management service, carries with it certain risks. Having said that, there are seven good reasons why anyone thinking about how to protect and build their wealth should consider it.

Firstly, however, let us briefly explain what a Discretionary Portfolio Management, or DPM, service is? Essentially, it is a type of investment management service where a professional portfolio manager is given authority to manage an investor’s portfolio on their behalf. This means that the manager can buy or sell securities, adjust the portfolio’s asset allocation, and make other investment decisions without having to seek the investor’s permission each time. The manager typically manages the portfolio based on the investor’s investment objectives, risk tolerance, and other criteria specified in a written agreement between the investor and the portfolio manager. The manager is expected to act in the best interests of the investor and to make investment decisions that align with the investor’s goals.

Now, back to those seven factors, which make MeDirect’s DPM service, known as MeManaged, worth considering in the current climate.

Tailored service

The main benefit of a DPM service is that the investment strategy being implemented by the portfolio manager is tailored to your own goals and risk appetite. This also applies to MeDirect’s MeManaged and every MeManaged customer is required to complete an online questionnaire prior to opening their account. This helps the portfolio manager understand the customer’s goals and risk appetite and, therefore, assign the most appropriate investment strategy.

Reputation and experience

The more complex and volatile the scenario, the more important it is that investment decisions are taken by professionals with world class credentials and who have access to all the latest information and trading technology. MeDirect’s global network of financial experts take care of portfolios diligently and on an ongoing basis. To further strengthen this, MeDirect has partnered with BlackRock, the world’s largest asset manager, to offer MeManaged. 

Accessibility

MeManaged is an entirely digital product. This means you can open your account and make any additional investments with ease through MeDirect’s mobile application or internet banking platform. You can also track its performance online through the MeDirect mobile app, or via internet banking, on a 24/7 basis.

Low minimum investments and fees

You can open a MeManaged account with just €100 and have flexibility on when and if to add to your investment. Should you wish to do so, the minimum top up is also €100. MeManaged also has a low and transparent fee structure.

Flexibility

You can withdraw funds from your MeManaged account whenever you need to, providing a minimum balance of €100 is maintained. If your circumstances change and you want to adapt your strategy, this can also be done entirely online.

Regular reporting and communication

Every MeManaged customer will receive regular monthly updates on the performance of the portfolio overall and will also receive a detailed quarterly report outlining the performance of his or her portfolio.

Cost-Averaging

You can opt to continue building your portfolio by investing a minimum of €100 every month. Consequently, customers can continue to build their portfolio and benefit from cost-averaging meaning that they are buying assets at regular intervals, and at different prices, thus providing some protection from market volatility.

Until 30 June 2023, there’s also an eighth and final reason to consider MeManaged and that is the fact that MeDirect will providing top ups of to €200 to customers who open a new account and invest a minimum of €2,000.

In an uncertain world, opening a Discretionary Portfolio Management account, could be a valuable way to continue growing your wealth. By giving investors the power to set clear goals but leave the day-to-day decisions in the hands of experts, MeDirect’s MeManaged can help customers achieve their financial goals, whatever the circumstances.

This is a marketing communication by MeDirect Bank (Malta) plc. Top-up promotion is valid for a limited time only and terms and conditions apply. MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of investment services under the Investment Services Act (Cap. 370).