Investment Process
Events have highlighted the importance of a diversified portfolio that takes heed of your financial goals and risk tolerance. Good investment advice should be personal to you and we take pride in following a bespoke but systematic process to achieve your goals.
We will assist you in the creation and management of an investment portfolio to meet your objectives for capital preservation, growth and income whilst not exposing you to unnecessary risk. This methodology is as relevant whether applied to general savings, a pension or trust assets.
Our financial planning expertise compliments the investment process to maximise the returns by taking account of tax opportunities and implications.
All of us should hold some savings in a bank account but most investors are not content with deposit returns for all of their savings and are seeking greater income or growth from at least part of their portfolio.
We will assist you in identifying what you want from your money. For one person, capital growth may be key, whereas for another, income may be the driver. The importance of capital preservation has been highlighted in recent years, whilst for those of us with family, mitigation of Inheritance Tax and care fees may be a concern.
You may have aims in life such as buying a holiday home or funding university education for children. Our financial planning expertise can determine how much money will be required to achieve these goals and our knowledge of your financial position will guide us in utilising the most efficient investment vehicles.
Risk Profiling
This first stage of the investment process is to ensure that your investments are capable of satisfying your expectations for income and growth whilst not exposing you to unnecessary or unacceptable investment risk.
Our approach aims to eliminate unwarranted investment risk. For example, many retirees may wish to simply protect the value of their capital whilst providing a reasonable level of income. In many instances they are not seeking seeking exceptional growth and risk. These aims may often be achieved without high exposure to stock market investment and we would favour a low risk portfolio where we can satisfy client needs without being exposed to unnecessary risk.
Risk profiling should give a clear perception of a client’s desire for capital growth and income but we also need to appreciate the level of risk that a client is comfortable with.
Our methodology allows the investor to see whether their aims are achievable from investments that are compatible with their attitude to risk. We do not have have magical powers and our role may be to either help the investor moderate their expectations or, if the aims remain unchanged we can explain the implications of the risks involved and construct a portfolio that does not carry unnecessary risk.
Asset Allocation
Armed with clarity regarding a clients expectations, income needs and tolerance of risk we may now identify the correct mix of assets to realise their investment aims. Investment markets are impossible to consistently predict over the short term but different assets have shown consistent patterns of return and relationships with inflation and cash over the longer term.
Our process is not suitable for high risk, short term investors and our services aim to assist clients in creating a portfolio that can be expected to meet their long term aims within an acceptable degree of risk.
The daily decisions over which holdings need to be bought or sold will be undertaken by the fund managers we choose. Modern portfolio modelling techniques are used to review an investor’s aims and risk tolerance in relation to the long term returns that can be expected from different investments such as UK shares, international shares, commercial property, Gilts, cash, etc.
Our portfolios will usually hold a broad range of investments as history has shown that real assets such as property, UK companies and international shares have produced better returns than cash over nearly all long term periods. However, the value of these different investments will fluctuate especially over the shorter term and a similar overall but more consistent return may be achieved by combining assets with differing properties.
Collective Investment Funds
Consideration is given as to how best to invest and manage these assets. A large investment sum and tolerance for administrative burden would be required to achieve direct exposure in a wide a range of asset classes. Direct holdings would probably be concentrated into a small number of stocks which increases risk and foreign investments are difficult to manage from the UK. Most investors cannot achieve direct investment into a broad range of assets at reasonable cost but we can use collective or pooled investments to allow the investor access to these different assets at low cost. Collective investments come in various guises and structures such as unit trusts, OEICs and investment trusts. All pool the money of many investors to create a large fund which can then be professionally managed to invest in a broad range of underlying investments.
The funds are often valued daily and can be traded or encashed with ease. Research, dealing and administrative costs are spread across a large number of investors thus helping to reduce the expenses to a low level.
Collective investments may be invested across a broad range of asset classes to create a balanced or managed fund or will be invested in a particular sector such as Gilts, UK equities, commercial property, etc.
Choice of Investment Managers
Different investment managers have different areas of expertise and we seek to identify those who have a consistent record of adding value whilst adopting a lower risk strategy.
We rely upon a variety of research services and many years of experience to identify the best funds in each sector and review our choices regularly.
Investment Wraps
It would be costly and difficult to implement changes if clients held accounts with 10 or more investment groups and for this reason, investment wraps have come to prominence.. Rather than having accounts with each fund manager an investor will maintain a single account with a wrap provider which can in turn access a multitude of funds from the leading managers. A consolidated statement can be provided instantaneously and money may be moved between the different underlying funds at little or no cost.
Wrap accounts will provide different tax structures such as ISAs, investment bonds or pensions within the one account to take advantage of their different tax breaks. We will advise you as to the wrap that suits you best..
Choice Of Investment Vehicles
You can hold investment funds in a variety of vehicles including ISAs, pensions, unit trusts and OEICS or bonds. These vehicles have their own tax profile and we will choose vehicles that will help maximise the return with regard to your tax position and requirements for income, capital growth, Inheritance Tax efficiency etc.
Portfolio Rebalancing
Our initial advice is intended to create a mix of investments that can meet the client’s objectives and not expose them to unwarranted risk. However, the underlying investments will change in value in a non-uniform manner. If this process continues unchecked, the proportion of assets in different classes will bear no relationship to the original risk profile and asset allocation. This could bring unwanted additional risk to the investor and we therefore rebalance the portfolio back to the agreed asset allocation on a regular basis.
Our Initial Advice
Once we have completed a detailed review of your current financial position, aspirations and objectives we will conduct our research. We will then make our recommendations to you and confirm them to you in a detailed report. The characteristics of the different investments available will be explained and we will highlight those most suitable for different objectives. We will often discuss these recommendations and this may result in some amendments to our proposals. Once we have agreed upon a strategy we will arrange the investments on your behalf.
Ongoing Fund Reviews
Funds are initially selected on the basis of their track record, the fund manager’s expertise and the level of risk taken. Inevitably, nothing stands still in the world and on occasion it may be necessary to substitute one fund for another. We will ensure that the fund choices are reviewed regularly and fund switches may be recommended or effected.
These services are paid for from our agreed ongoing fees and we make no additional charge and do not receive commission for this service.
How Can I See The Value Of My Investments?
Clients are sent valuations regularly or on demand and we can usually offer secure internet access to valuation and information services.
Ongoing Client Reviews
Wealth creation and management is an ongoing process and we suggest that your portfolio is reviewed regularly to ensure the best chance of your objectives being met.
Your circumstances and attitudes may change over time so we will usually offer you an annual review at no additional cost. Should you wish to discuss your portfolio in the intervening period we are always available by phone or email.
We will assist you in the creation and management of an investment portfolio to meet your objectives for capital preservation, growth and income whilst not exposing you to unnecessary risk. This methodology is as relevant whether applied to general savings, a pension or trust assets.
Our financial planning expertise compliments the investment process to maximise the returns by taking account of tax opportunities and implications.
All of us should hold some savings in a bank account but most investors are not content with deposit returns for all of their savings and are seeking greater income or growth from at least part of their portfolio.
We will assist you in identifying what you want from your money. For one person, capital growth may be key, whereas for another, income may be the driver. The importance of capital preservation has been highlighted in recent years, whilst for those of us with family, mitigation of Inheritance Tax and care fees may be a concern.
You may have aims in life such as buying a holiday home or funding university education for children. Our financial planning expertise can determine how much money will be required to achieve these goals and our knowledge of your financial position will guide us in utilising the most efficient investment vehicles.
Risk Profiling
This first stage of the investment process is to ensure that your investments are capable of satisfying your expectations for income and growth whilst not exposing you to unnecessary or unacceptable investment risk.
Our approach aims to eliminate unwarranted investment risk. For example, many retirees may wish to simply protect the value of their capital whilst providing a reasonable level of income. In many instances they are not seeking seeking exceptional growth and risk. These aims may often be achieved without high exposure to stock market investment and we would favour a low risk portfolio where we can satisfy client needs without being exposed to unnecessary risk.
Risk profiling should give a clear perception of a client’s desire for capital growth and income but we also need to appreciate the level of risk that a client is comfortable with.
Our methodology allows the investor to see whether their aims are achievable from investments that are compatible with their attitude to risk. We do not have have magical powers and our role may be to either help the investor moderate their expectations or, if the aims remain unchanged we can explain the implications of the risks involved and construct a portfolio that does not carry unnecessary risk.
Asset Allocation
Armed with clarity regarding a clients expectations, income needs and tolerance of risk we may now identify the correct mix of assets to realise their investment aims. Investment markets are impossible to consistently predict over the short term but different assets have shown consistent patterns of return and relationships with inflation and cash over the longer term.
Our process is not suitable for high risk, short term investors and our services aim to assist clients in creating a portfolio that can be expected to meet their long term aims within an acceptable degree of risk.
The daily decisions over which holdings need to be bought or sold will be undertaken by the fund managers we choose. Modern portfolio modelling techniques are used to review an investor’s aims and risk tolerance in relation to the long term returns that can be expected from different investments such as UK shares, international shares, commercial property, Gilts, cash, etc.
Our portfolios will usually hold a broad range of investments as history has shown that real assets such as property, UK companies and international shares have produced better returns than cash over nearly all long term periods. However, the value of these different investments will fluctuate especially over the shorter term and a similar overall but more consistent return may be achieved by combining assets with differing properties.
Collective Investment Funds
Consideration is given as to how best to invest and manage these assets. A large investment sum and tolerance for administrative burden would be required to achieve direct exposure in a wide a range of asset classes. Direct holdings would probably be concentrated into a small number of stocks which increases risk and foreign investments are difficult to manage from the UK. Most investors cannot achieve direct investment into a broad range of assets at reasonable cost but we can use collective or pooled investments to allow the investor access to these different assets at low cost. Collective investments come in various guises and structures such as unit trusts, OEICs and investment trusts. All pool the money of many investors to create a large fund which can then be professionally managed to invest in a broad range of underlying investments.
The funds are often valued daily and can be traded or encashed with ease. Research, dealing and administrative costs are spread across a large number of investors thus helping to reduce the expenses to a low level.
Collective investments may be invested across a broad range of asset classes to create a balanced or managed fund or will be invested in a particular sector such as Gilts, UK equities, commercial property, etc.
Choice of Investment Managers
Different investment managers have different areas of expertise and we seek to identify those who have a consistent record of adding value whilst adopting a lower risk strategy.
We rely upon a variety of research services and many years of experience to identify the best funds in each sector and review our choices regularly.
Investment Wraps
It would be costly and difficult to implement changes if clients held accounts with 10 or more investment groups and for this reason, investment wraps have come to prominence.. Rather than having accounts with each fund manager an investor will maintain a single account with a wrap provider which can in turn access a multitude of funds from the leading managers. A consolidated statement can be provided instantaneously and money may be moved between the different underlying funds at little or no cost.
Wrap accounts will provide different tax structures such as ISAs, investment bonds or pensions within the one account to take advantage of their different tax breaks. We will advise you as to the wrap that suits you best..
Choice Of Investment Vehicles
You can hold investment funds in a variety of vehicles including ISAs, pensions, unit trusts and OEICS or bonds. These vehicles have their own tax profile and we will choose vehicles that will help maximise the return with regard to your tax position and requirements for income, capital growth, Inheritance Tax efficiency etc.
Portfolio Rebalancing
Our initial advice is intended to create a mix of investments that can meet the client’s objectives and not expose them to unwarranted risk. However, the underlying investments will change in value in a non-uniform manner. If this process continues unchecked, the proportion of assets in different classes will bear no relationship to the original risk profile and asset allocation. This could bring unwanted additional risk to the investor and we therefore rebalance the portfolio back to the agreed asset allocation on a regular basis.
Our Initial Advice
Once we have completed a detailed review of your current financial position, aspirations and objectives we will conduct our research. We will then make our recommendations to you and confirm them to you in a detailed report. The characteristics of the different investments available will be explained and we will highlight those most suitable for different objectives. We will often discuss these recommendations and this may result in some amendments to our proposals. Once we have agreed upon a strategy we will arrange the investments on your behalf.
Ongoing Fund Reviews
Funds are initially selected on the basis of their track record, the fund manager’s expertise and the level of risk taken. Inevitably, nothing stands still in the world and on occasion it may be necessary to substitute one fund for another. We will ensure that the fund choices are reviewed regularly and fund switches may be recommended or effected.
These services are paid for from our agreed ongoing fees and we make no additional charge and do not receive commission for this service.
How Can I See The Value Of My Investments?
Clients are sent valuations regularly or on demand and we can usually offer secure internet access to valuation and information services.
Ongoing Client Reviews
Wealth creation and management is an ongoing process and we suggest that your portfolio is reviewed regularly to ensure the best chance of your objectives being met.
Your circumstances and attitudes may change over time so we will usually offer you an annual review at no additional cost. Should you wish to discuss your portfolio in the intervening period we are always available by phone or email.