Our director is one of a select few Chartered Wealth Managers, but what is wealth management?
Wealth management largely deals with the investments within a financial plan. It is one of the main considerations when trying to match goals and improve outcomes.
And it is an especially important part of managing pension investments in light of the recent changes.
We consider the appropriate asset allocation between different types of investments with different degrees of risk and return and how similarly they act – or correlate, in other words do they tend to move in tandem or independently of each other. Of course, we want to hold them in the most tax efficient way possible to enhance returns. We also want to keep the associated trading costs as low as possible – do funds with higher charges provide higher returns? In terms of retail equity funds, normally the answer is a straight ‘no’.
We elaborate on this further in the section on our investment philosophy.
That all sounds pretty simple, but in essence it involves a lot of data mining on our part. Even simple index funds and exchange traded funds (ETFS) are not all created the same. Also, some of you will be happy to consider a wider pool of investment classes with a small part of your portfolio. This might include assets such as gold. That widens the net of available investments to include the physical metal, gold etfs, gold mining shares and funds and indices of any of those.
However, the key for you is the knowledge that we have direct experience of most asset classes both here and globally and we are happy to explain the relative risks of each and how we try to measure that risk.
As a process we proceed as follows:
- Thorough discussion to assess your goals;
- Discuss risk – we will explain the different risk profiles of separate types of investments, give you some idea of what to expect and get an idea of what you are comfortable with;
- Analysis of any existing portfolios of assets;
- Use all of the above to create an investment plan;
- Monitor that investment plan in relation to changes to investments within that plan, investments in general and legislation.