When you invest into a UK stock market Open-Ended Investment Companies (OEICs), Unit Trust, Investment Trust or Pension Fund, your fund manager’s objective is generally to provide the best possible returns with a reasonable degree of volatility by investing in UK shares. He may do this successfully and outperform the UK stock market by buying shares that offer better value relative to the market and selling and avoiding those shares which offer poor relative value. If the UK stock market falls he may well outperform the market but the value of your investment may still fall.

We apply the principles of the fund manager to all asset classes. Our philosophy for reducing risk and increasing risk/reward returns is to constantly study all asset classes (cash, fixed interest, inflation linked, property, stock markets and commodities) and to identify and compare their economic, credit and valuation risks. Having identified assets which offer good value, a portfolio can be created which meets your needs and attitude to volatility and maximises tax efficiency. This can often include an assessment of the fund managers that offer the best risk/reward profiles within the selected asset classes.

There can be a difference between the risk associated with the return required to achieve your objectives and the level of risk which you would normally choose to take. We will assist in identifying any such difference and discuss how this might be resolved. This could involve taking less or more risk; investing more; spending or gifting more; reducing or increasing your objectives.