There are only four main types of asset that can be readily traded - cash, fixed income, property and shares - and they can be effectively combined to produce patterns of risk and reward. Our first step is to create an asset allocation model that is appropriate to your goals, time scale and tolerance of risk.
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These four types of asset class have typically displayed certain patterns of risk and reward. We base our assessment on the long-term behaviour of these investments, avoiding undue influence from very recent movements. Ours is a conservative approach. At heart, we believe that the majority of people are more interested in preservation of capital, with a moderate rate of return, rather than targeting a potentially higher capital return, but with the commensurate risk of significant loss. We will blend 'absolute return' style investments together with more conventional funds to ensure that we achieve consistency of return for our clients.
We do not advise on individual shares recommending only collective investments. If clients want to manage some of their own capital in individual shares, or have company share options schemes, we can accommodate that in their portfolio planning. Well selected collective investment schemes should produce as good or better returns with less risk than a share portfolio managed by a third party. Collective funds tend to attract better managers than discretionary portfolios, but perhaps more importantly, they are also more transparent. They have audited public records, which show exactly how the fund has performed in the past.
Our ongoing services are advisory, not discretionary. This means that we have to obtain your consent to any changes we recommend for your investments. Our experience suggests that a well selected portfolio of collective investments should not require frequent changes. By operating on an advisory basis, we can keep our annual charges to a reasonable level.