Many clients who seek our advice have acquired various investments throughout their lives, they have answered an advertisement, spoken to a salesman, visited a bank for advice. There is no cohesion to the investments, there is nad between different types of asset or different geographical spread
Before reviewing the investments we sit down with the client to understand your needs and attitude to risk. Once this is established we review the existing investments to see if they suit your needs. In many cases the charges are high and the fund choice limited.
We will agree an asset allocation which suits your needs and then review the exiting holdings to see if they fit the profile, if they do not some amendments will be recommended.
We believe in a spread of investments so all clients will have:
- a cash holding – an emergency fund
- a holding in fixed interest – this my be via a gilt or corporate bond fund or funds holdings in national savings if this is tax effective
- holdings in cash and stocks and shares ISAS if applicable
- holdings in commercial property via collecties
- holdings in equity funds, both uk and overseas
- maybe holdings in alternative investments, depending on attitude to risk
- investment in pension funds
The split between the asset classes will depend on when capital is needed and the attitude to risk
Most assets will be registered on to an administrative Platform such as Fidelity Funds network, Transactor Co-funds. Existing investments can normally be re-registered cheaply. The advantage of using a Platform is that funds can be moved swiftly and cheaply and clients can have internet access to their portfolios at any time.
Once a portfolio is established it will be regularly reviewed to make sure that it is still achieving the goals set by the client.
We do not advise on shares, but if the client has a portfolio run by a stockbrokers, we will ask to obtain copies of the valuations so that these assets can be incorporated into the agreed asset allocation.
All our investment advice is given on a consultative basis which means that we always advise you of our recommended switches to funds before the action is taken and we ask for your agreement.