Our Investment Process

If our recommendations to you include an investment of any sort we will fully consider the risks of any actions in context with your overall circumstances and objectives by following our robust Investment Process.

1. Understanding your Attitude to Investment Risk

Before any investment strategy can be created, it is important to understand your Attitude to Investment Risk.  We will begin by completing an "Attitude to Risk Questionnaire" with you, to identify the appropriate level of risk you would be willing and able to take and to understand your tolerance of loss.  Our Risk Questionnaire takes into consideration a number of factors known to be excellent predictors of Attitude to Risk.  The questions have been designed to elicit an emotional response to risk rather than a pure factual one.  None of the responses will have a direct bearing on the eventual fund selection or products that may be recommended, but is used as a basis for discussion and agreement regarding the final risk profile on which the recommendations will be based.

2. Confirmation of Risk Score

Once the Questionnaire has been completed, we will calculate your "Risk Score" by using a "scoring system on a scale of 1 to 10, with 1 being risk averse and 10 being speculative. We will then discuss the identified "Risk Score" with you and  ask you to consider your short and long term goals, the time horizon, investment experience, taking into consideration other existing holdings you may have. 

3. Determining the Asset Allocation

Asset allocation is the key to effective portfolio building. The ideal portfolio is likely to have a balance between all the asset classes, with the percentage held within each sector dependent on your attitude to risk and expected investment term. Diversification across the main investment asset classes is vital when constructing an investment portfolio, as it is not possible to predict with certainty where and when future returns are going to come from. A spread across the main asset classes provides a degree of protection and reduces volatility.

4. Selection of the Tax Wrapper(Investment Product)

We will recommend the most appropriate investment wrapper to ensure maximum tax efficiency.

5. The Fund Selection Process
Our recommended fund selections within each asset class are based on our in-house benchmarks and pre-determined filters to eliminate fund selections that we would consider unsuitable for any of our clients. The process is dependent upon the type of investment wrapper and the value of the funds to be invested.  We have set our benchmarks to ensure that the fund selection process takes into consideration the past performance of the funds, their sustainability, credit rating and financial strength.

Please note that past performance is necessarily an indicator of future returns.

6.  The Importance of Rebalancing the Portfolio

The investments in a portfolio will perform according to the market. As time goes on, the portfolio's current asset allocation (mix of funds) can move away from the original target asset allocation. If left un-adjusted, the portfolio could either become too risky, or too conservative. Rebalancing is the action of bringing a portfolio of investments that has deviated away from the target asset allocation back into line.

7.  Reviewing your Investments

As part of our ongoing relationship with our clients, we regularly review your Investment Portfolio. The aim of such a review would be to ensure that both the funds and asset allocation model continue to meet with your stated financial objectives and  risk tolerance.  We can then make the necessary adjustments and rebalance the portfolio if required.