Investment advice

There are a few timeless and simple investment principles that should be considered before any investment decision is made:

  • There is no such thing as a perfect investment. If there was, everyone would invest in it
  • If something looks too good to be true, it probably is
  • Balance and diversification. Don’t put all your eggs in one basket
  • An off-the-shelf plan is unlikely to meet the needs of every individual who invests in it.

Only by understanding you and your objectives can we then apply our expertise and experience to recommend a strategy which will meet these objectives. Our service does not end with initial advice but is ongoing via a dedicated personal investment adviser, so that your strategy can be adjusted over time to take account of changes in personal circumstances, or the financial climate.

Most people will want some or all of the following from their capital:

  • Access to their money
  • Income to supplement pension or any salary
  • Growth to maintain their standard of living over time
  • Security to reduce exposure to risk
  • Tax efficiency so that as little of what you earn is lost to the taxman.

Your stage of life and personal circumstances will probably determine in what order of priority you consider this list.

There are two categories of investment; those that are Capital Protected and those that are not, known as Risk investments. In building a balanced investment portfolio both of these are essential elements, but the emphasis on each and the investments themselves will be unique to an individual's investment objectives and their attitude to risk.

To meet your investment objectives we apply the principles of investment to construct a balanced spread of assets. It is often said that the best ideas are the simplest and we explain a balanced investment portfolio with reference to the Three Boxes.

We divide capital into Three Boxes so that we can manage the investments in each to deliver a single defined objective i.e. to produce income at a defined return rate at a given time; to provide you with access to your money or to produce growth aimed at exceeding inflation. In addition, by dividing capital we reduce concentration risk. The Three Boxes are flexible and the mix between access (Box 1), income (Box2) and growth (Box 3) can be altered, enabling you to adapt to your needs as they change over time.

The particular investments and the proportions held in each box will vary from client to client. Via our discretionary investment management service, our Investment Management Team makes its investment decisions and varies allocations within agreed parameters actively with our client’s objectives in mind.

Depending on your objectives and attitude to risk, our Investment Managers take all the key decisions necessary. They ensure that you have a level of geographic diversification (UK vs Europe vs USA, for example) and pick individual bonds, stocks or collectives within these markets aimed at producing a return better than the relevant market