How we manage our clients money
I’d like to show you how we construct investment portfolios, which is an evolving science in these uncertain economic times we live in. After ascertaining your risk profile and capacity for loss, one of our next considerations is to spread your money round the various asset classes, aiming at limiting losses should markets fall at various intervals during an investment cycle, as well as growing that capital over time.
Whether we are taking charge of your pension and/or investment monies, we will look to enter your money to an actively managed portfolio environment at all times.
Having access to the whole of the provider market, we will then scour the options to recommend the most appropriate products and providers out there using a careful selection criteria list, with your specific circumstances in mind.
Many of the recommended solutions will research and include funds from a wide range of Investment groups. The range of funds represents all the main asset classes, key global regions and a variety of investment approaches. The funds are researched and monitored on an ongoing basis. They choose these groups and their funds with a long-term view, and have the flexibility to add, replace or remove fund managers and/or fund groups from their portfolios where appropriate.
Our managed portfolio services (MPS) bring precision to the management of your investments and pensions by carefully matching the appropriate portfolio with the level of risk acceptable to you and investment approach most suitable to your needs. MPS gives you the choice of risk targets as well as the choice of active or passive blend investment styles, depending on your preferred investment approach and attitude to cost.
These Managed Portfolios use a disciplined, long-term asset allocation approach designed to maximise the potential return for an expected level of risk. They are designed to offer diversification at multiple levels, investing across global markets, both developed and emerging, and via managers with different styles and approaches.
The Managed Portfolios we recommend are available for investment into:
- Individual Savings Accounts (ISA)
- General Investment Accounts
- Investment Bonds
- Personal pensions and self invested personal pensions (SIPP’s)
The portfolios’ asset allocations are designed to be as tax-efficient as possible. The asset allocation targets are tailored depending on which of the above products are invested to, because different products enjoy different tax statuses.
We undertake a robust governance programme to help to ensure that the selected product providers deliver as our clients expect. The Managed Portfolio Services we recommend are overseen by each providers Advisory Committee, which provides both investment challenge and independent risk management. We have the ability to change MPS providers at any time if we feel they aren’t performing.
You will receive extensive reports from us on your portfolio, usually when have our regular review meeting. In addition we can provide ad hoc reports on request, either by post or via email keeping you informed of the performance of your investments or pension funds. You can choose how much involvement or information you want.
These reports will tell you the latest value of your investment and also inform you of any changes made to the portfolio since the last review. It will provide you with commentary from the portfolio manager and include a brief commentary on the market events during the past quarter.
Of course these investment strategies will not stand still. the providers will rebalance asset allocations at frequent intervals, meaning that as an example, if shares/equities should perform well in any given period so that the result means a higher overall percentage of your portfolio now being held in equities, the re-balancing exercise will automatically reduce this allocation back to the original percentage to re-align the risk profile as it was first intended.
We also look to outsource another type of managed portfolio service for specific client groupings, called a Discretionary fund manager (DFM). This allows us to access other fund managers in the industry, who have the regulatory permissions to manage portfolios on a discretionary basis. This means that they can make changes as and when necessary without having to first get prior agreement – in fast-moving markets this flexibility is an important factor and delivers real efficiencies in portfolio management for our clients. The investment funds that are chosen for inclusion in these portfolios go through a stringent selection process and the DFM’s have long-term relationships with Companies, enabling them to be able to meet in person with the various fund managers, many of whom are based in the City of London. For the right type of client, the combined operation of the DFM alongside our own portfolios gives great diversification and balance to your investments, and we report on progress of your total arrangements on a regular basis.
Of course, if you don’t suit the profiles for the above offerings, we can customise a specific investment programme for you. The price of this personal offering can be discussed when we review your personal circumstances, attitude to risk and financial aims.