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Selecting Investments

It is important to remember that all investments carry a level of risk; generally, the higher the risk, the higher the potential return.

Depending on your fund’s performance, you could get back less than you put in. However, by receiving trusted independent financial advice from our team of experts, you can be confident that the choices that you make are right for you. Your funds will be placed into investments which suit your attitude to risk, capacity for loss and offer the potential for growth in line with your objectives.

Our Approach to Investments

We use a range of portfolios with varying levels of risk to suit our client’s needs. Each portfolio consists of over 20 multi-asset funds. That means you get the right level of diversification and professional management for your needs, without needing a hands-on approach.

Top-Down Asset Allocation

The top-down approach is taken by most professional investors. It begins with an overall look at the objectives for the portfolio and deciding what mix of investments (i.e. Bonds, Equities) is required to meet the objectives within the risk tolerance. When this framework has been determined, individual funds are considered. We take a broad view of global markets and industries, reviewing trends before digging deeper assessing individual fund managers.

Passive vs Active

When considering investments, you‘ll come across the terms ‘passive’ and ‘active’ to describe funds. Passive funds track a market index, such as the FTSE 100, or a market segment rather than specific companies. They usually offer a lower fund charge. Active Funds make use of fund managers, analysts and researchers to pick and choose which assets to buy and sell, and when is the best time to do so. They aim to outperform benchmarks and therefore carry a higher cost.

The portfolios we use for our clients take a blended approach. They combine both passive and active funds to benefit from long-term, low-cost and diversified growth, as well as active management during times of market uncertainty and instability.

Sustainable Options

Individuals are becoming increasingly conscious of their impact on the environment and society, and the broader impact of the organisations they support: whether through the places they shop, suppliers of their energy, or even companies they choose to travel with.

To ensure that you are investing into the future you want to create, why not consider sustainable investments for your pension fund? Unlike a traditional investment, sustainable investing allocates your funds to companies driving positive change. From investing in companies promoting financial inclusion or even developing cures for disease, anything that could improve long-term outcomes may be considered a sustainable investment.

We offer sustainable investment portfolios at a range of risk levels – so whatever your attitude to risk or capacity for loss, we have an option to suit you.

Understanding the Benchmark

Your independent financial adviser will send you a copy of our portfolio fact sheets. These outline the make-up of assets, along with the fund’s past performance against the benchmark. It is important to remember that past performance should not be used to predict the future. As with all investments, growth cannot be guaranteed. However, the benchmark will show you how a portfolio compares to the average performance of other funds within the same risk profile.

The benchmark can be used to evaluate how the different asset groups which make up our portfolios have performed and when it may be appropriate to make fund changes.