Are your investments the best for you?
Whether your money is in a pension, stocks and shares ISA or other assets we will help you identify the right options for you and investments that add value.
Financial security comes from a well-diversified portfolio that is suited to your financial goals and risk tolerance. We do not believe ‘one size fits all’ and use a personal but consistent approach to attain your financial objectives, whether that be capital preservation, growth or income.
All of us should hold some savings in a bank account for ‘rainy day’ purposes but interest rates are low. Hence, most people will invest some of their long-term savings elsewhere; we help you find the best choices and avoid the pitfalls.
What do you want from your money?
Firstly, we will spend time together to help you decide what you want from your money. For one person, growing their wealth may be most important, whereas for another, receiving a steady, increasing income may be crucial. We all want to know that our savings are safe whilst for many of us avoiding unnecessary Inheritance Tax and care fees may play a part in our thinking.
We will help you to decide on the relative importance of your financial objectives and identify any specific needs in the future. We may use cashflow modelling to estimate how much money will be required to maintain your lifestyle in the future and consider the different ways of achieving security.
We will identify investments that can meet your needs whilst not exposing you to unnecessary risk. We will help you to consider what level of capital growth and income you are seeking. After all, there is no point in accepting the risks associated with more adventurous investments if your objectives may be satisfied by a lower risk approach.
Most people are realistic enough to realise that all investments carry some degree of investment risk but we will take time to ensure that we understand the level of risk you are comfortable to take.
Creating the right blend of investments
Once we have a clear vision of your investment aims and tolerance of risk we will explain the implications and risks of different strategies. Once you are comfortable with your choices we can identify the correct mix of investments.
Our advice is not intended for those seeking high risk seek short-term gains. Rather, we will help create a diversified portfolio that you can expect to meet your long-term financial aims within an acceptable degree of risk.
Spreading your money, reducing risk
Your portfolio will seek to reduce risk by including a broad range of assets. Investment in real assets such as property, UK companies, international shares, bonds and commodities has usually delivered better returns than cash over the long-term. We will spread your wealth between a wide range of assets to reduce risk.
Any ethical investment concerns will also be discussed and reflected in our proposals.
Collective Investment Funds
Whatever you invest in we will usually recommend a spread of collective funds rather than a single investment. This means that risk is reduced by spreading your investment over many holdings rather than just a few.
Your money is pooled with other investors to create a large fund holding a broad range of investments chosen by a professional management team. The value of your holdings will change, usually on a daily basis and you can track it daily.
Passive or active management?
An actively managed fund will employ a fund manager to decide which holdings to buy and sell whilst a passive fund will seek to replicate the investment sector as a whole. We usually find that most investors are best suited to a blended mix of both active and passive funds.
A typical portfolio will hold between 20 and 30 funds that in turn will be spread amongst many hundreds of investments.
Discretionary Fund Management (DFM)
Your portfolio of funds will be managed for the long term but whilst paying attention to what is happening now. Occasionally it may be wise to switch from one manager to another and it is helpful if these decisions can be made quickly and the portfolio adjusted promptly. Hence, we will often work with a discretionary fund manager (DFM) who has the research and investment expertise to take these more tactical decisions on your behalf. A DFM will have your prior permission to switch between funds immediately and our experience has been that this approach has delivered additional value to our clients.
It is possible to buy funds directly from the individual fund managers. However, valuations and administration would be very time consuming and it would be impossible to switch money between different funds in a quick and cheap manner. For this reason, investment platforms have come to prominence in recent decades.
The concept is a simple one. Instead of having accounts with the individual fund managers, an investor has an account with one wrap provider. This platform provider can then offer access into any of the individual funds available on the platform – usually several thousand choices from all of the leading investment providers.
Monitor your portfolio securely and easily
When you wish to view your portfolio you can use our secure technology to see a consolidated statement. When changes need to be made you can change investments between the different funds quickly and at little or no cost.
Making the most of tax advantages – ISAs, pensions
Holding your investments within the most tax effective vehicle (pension, ISA, bond etc) can have a big effect on your overall return. We will advise you on the best choices according to your tax position.
Portfolio Rebalancing – keeping risk in check
Some of your funds will be higher risk and some lower risk to create the overall risk level of the portfolio. However, the different holdings will not change in value at the same rate. If this process continues unchecked, the risk level of the portfolio will deviate from what was agreed. Hence your portfolio will be moved back to the original risk level on a regular basis.
Nothing stands still in the world including investments. Our ongoing support service will ensure that your investments continue to be monitored and changes made as appropriate.