Whatever your objectives we believe that all investors aim to have access to a range of flexible, tax-efficient investments. Our independence allows us to draw on the expertise of both in house investment specialists and external investment managers in our aim to achieve maximum returns.
We firstly aim to understand your financial circumstances, objectives and attitude to risk, before we can make any recommendations.
Investment decisions should also take account of the investor's tax position, existing investments and asset allocation, and any personal preferences. Should you choose an investment bond over an ISA, and if so in what circumstances? Where should your money be invested geographically? Can you switch your investment funds readily and cheaply? How much should you keep in cash?
ISAs
An ISA (Individual Savings Account) is an Investment vehicle which benefits from favourable tax treatment and enables UK resident investors to shelter savings with no further personal income or capital gains tax liabilities.
Investment Bonds
Investment Bonds allows your money to be invested, along with other investors' funds, by professional fund managers. They are normally designed to produce long term capital growth, but can also be used to generate an income and are tax efficient investments, especially for higher rate tax payers.
Equities
Whilst in the short-term equities can be volatile, historically they have outperformed all other asset classes over the longer-term. Equities offer the potential for capital growth and rising income.
Unit Trusts and OEICs
Most people understand the benefits of collective investment: the fact that investment risk is spread over a range or "basket" of investments, that a professional manager is used to make investment decisions on your behalf (except for tracker funds), and that there are economies of scale and increased liquidity to be had for investors.
Unit Trusts and OEICs (“Open-ended Investment Company”) are collective investments, which are “open-ended”, that is to say as more money is invested in the fund, more units are added.
Fixed Interest
Corporate bonds and gilts offer significant potential for increased income in times of low interest rates. Gilts, also known as gilt-edged securities, are loans issued by H.M. Government carrying a fixed coupon (interest payment). The combination of selling price and the coupon gives the yield of the bond (assumes it is held to maturity). As the name suggests, they are considered very low risk as the Government issues and backs them. They form a popular part of most private investment portfolios, more often held as part of a fund rather than held direct. In view of their low risk profile, returns (yields) tend to be at the lower end of the investment spectrum.
Capital Protected Investments and Guaranteed Equity Bonds
This type of investment is designed to offer a degree of protection to capital, whilst offering the potential for higher returns. The more risk to capital, the higher the potential return. The return will be linked to a basket of quoted shares, or a stock market index (or a basket of indices), the most popular being the FTSE 100 index. The term is normally fixed for five or six years, sometimes with an option of the seller to close the bond and repay capital plus income early under certain circumstances.
The value of investments and income from them can fall as well as rise and you may not receive the full amount invested.
Past performance is not a guide to future performance.
Investments in equities (stocks and shares) do not have the same degree of capital security as investments in deposits.