Creating wealth at an affordable premium

There are two main reasons people invest: to accumulate a lump sum for the future and to provide an additional income stream. We'll help you build a diversified portfolio reflecting your appetite for investment risk and the expected duration of the plan incorporating as an example fixed interest investments, corporate bonds, company stocks and shares and property. Typical factors that are taken in to consideration when analysing portfolio returns are initial and ongoing charges, the volatility of the fund and how concentrated the portfolio is, how long the fund manager has been in charge and historic fund performance.

A typical example of investing in a corporate bond is an investment fund manager allocating funds to a high street bank who distribute the funds through a residential mortgage charging a set fixed interest rate for a set period. The investor receives dividends/ interest added to their portfolio after fees and charges. This basic holding would form part of a larger collection of bonds and equities diversified reflecting the amount of risk the investor is willing to accept. Investing in bonds that pay interest on a regular basis carries less risk than investing in for example equities such as a technology firm looking for growth with no regular income.

There are a number of ways to invest such as an active fund manager who looks for opportunities through undervalued businesses using ratios and performance. The best fund managers outperform the market and secure higher returns but this is not guaranteed. Tracker funds have no active management, the fund rises and falls with the index but when markets are performing well will receive dividends/ additional units increasing the value. If markets fall the tracker reduces with the market fall.

Ask for a personalised illustration tailored to your requirements. Past performance is not a guide to future returns and your capital is at risk.

The best solution takes in to account:

  • Tax efficiency accounting for your personal allowances
  • Estate Planning
  • Managing risk with a thorough analysis of your risk tolerance
  • Maximising returns
  • Diversification using ISAs, OEICs, investment bonds, Unit Trusts and SIPPs Exchange Traded Funds (ETFs), Hedge Funds and Investment Trusts.
  • Regular reviews

We will use our expertise to establish the most cost efficient solution for you - reflecting the right level of risk tailored to your requirements. We will consider the most tax-efficient option and aim to use diversified investment portfolios with the aim of optimising returns. Our transparent competitive fee structure can help ensure your investments do not need to invest in higher risk funds to achieve desired return.

With increased market volatility, risk management is vital and one way this can be achieved is via our Wealth Management service which provides peace of mind to know your investments are being monitored with adjustments recommended when required.

With current low interest rates most people recognise that having some exposure to the stock market within a balanced portfolio can make sense for real returns over time. However, investing in the stock market can be daunting, particularly as markets have been volatile and the choice is huge, with over 2,000 investment funds to choose from.

We use a mathematical formula to work out the effect of charges on investment returns such as: Susan puts £20,000 in a savings account paying 8% annual interest compounded monthly. At this rate how much money will be in the account after 40 years?

A = P(1+0.08/12)12(40)

A = £20,000 (1+ 0.08/12)12(40)

A   = £20,000 (1.006667) 480

A = £485,544

HOWEVER, if Susan puts £20,000 in a savings account paying 6.5% annual interest compounded monthly. After charges the amount sum after charges reduces to:

A = P(1+0.065/12)12(40)

A = £20,000 (1+ 0.065/12)12(40)

A   = £267,392

The value of an investment, and any income derived from them can go down as well as up. Exchange rate movements can also have a positive or negative impact on the value of Non-UK investments. Past performance is not a reliable indicator of future returns and you may not get back your original investment. Generally, investments should be considered for the medium/long term, which we define as a minimum of five years.