Investment advice
You have one future, keep investing in it
How we manage your money
We manage your money on an ‘advisory’ basis, rather than discretionary. This is where we provide advice to you, but the ultimate decision making is in your hands, in other words you retain a good degree of control over your money. We prefer this for a number of reasons, but importantly, we would like you to be engaged with your investments and an advisory service tends to be more cost effective for you. A discretionary service is where you delegate your authority to an investment adviser, so less thinking time, but also less control.
We offer an advisory based service, the control is in your hands.
What will it look like?
We will build your portfolio, within your tolerance for risk, but also look at your wider financial position, in order to understand the value of the investment compared to your overall assets, this is what we call assessing your capacity for loss. We adhere to strong asset allocation foundations, this is about diversifying assets, using different asset classes, such as equities, bonds, property and alternatives. Whilst the basic principles of diversification are logical it’s important to understand the motives. If you invest in two companies, one manufactures jumpers and the other swimwear, they will be in counter demand seasonally. So, why invest in both, well the long-term trend is important and provided they are well run companies there is diversification, but the trend is the important factor. Fortunately, our diversified portfolios comprise of far more companies, generally held in funds such as unit trusts, investment trusts and exchange traded funds.
A dependable plan for your future.
Keeping on track
This is imperative. Any investment should be with a goal in mind, for example to save for a comfortable retirement, for school fees, maybe a one-off lifetime purchase. Along the way your thoughts and objectives will change, so will our risk tolerance. So, we factor in reviews, at least annually, to make sure you are on track to meet your goals and that your investments are doing what they should do.
We help you to keep on track and meet your goals.
What might it cost me?
We have a simple charging structure, a case study example, as follows: -
Linda has £150,000 to invest. Ordinarily, we prepare a report and recommendation, after getting a full understanding of her circumstances and objectives, the cost of this report is a flat £565. Should Linda wish to proceed our implementation costs are 1% of the investment, so a fee of £1,500, however, we would deduct the £565 report fee, so the invoiced value would be £935. To ‘keep on track’, we charge an ongoing adviser fee of 0.6% of the assets under our advice, this charge will rise, or fall depending on the value of the underlying assets. Based on a £150,000 investment or adviser charges would be £900 per annum, these charges can either be paid out of pocket, or from the invested funds.
In addition, there will ordinarily be a product/platform fee, this will normally be between 0.20% and 0.25% per annum, plus there is a charge for the investments, as a guide, allow for 0.5% per annum. Depending on the types of investments, there may be ad hoc charges, such as stamp duty and possibly trading charges, however, within a model we tend to negate the impact of the latter.
A simple and transparent charging structure.
