Our investment research & advice process has been designed to ensure that investment recommendations are based on a thorough understanding of your attitude to investment risk and capacity for loss and your present and future financial requirements.
The key stages of the process include:
- Completion of a Financial Planning Questionnaire
- Risk profiling
- Assessing capacity for loss
- Investment pre-report
- Investment fund selection
- Product selection
- Investment report
- Arranging your investments
- Regular investment reviews
Completion of a Financial Planning Questionnaire
In order to provide you with investment advice it is essential that we collect detailed information regarding your finances including any existing investments, pensions or other savings contracts. We also require information regarding your current income and expenditure and anticipated future income and expenditure to ensure that any recommendation is affordable and relevant to your situation. Completion of a Financial Planning Questionnaire ensures that we collect the right information to advise you accordingly.
We use a risk profiling tool provided by eValue to accurately and independently assess your attitude to investment risk and capacity for loss. By completing an online questionnaire your answers are analysed and a risk profile is created which includes a summary and asset allocation model.
A copy of the profile and questionnaire is provided to you and confirmation is requested to ensure that you are in full agreement with the results and that it is an accurate assessment of your attitude to investment risk and return.
Assessing Capacity for Loss
It is important that we understand your ability to absorb falls in the value of your investments and if the loss of capital would have a detrimental effect on your standard of living.
We ask you a series of questions to ensure that we fully understand the amount of risk you can actually afford to take and to apply a clear timeline to the level of risk that you are prepared to accept.
An Investment Pre-Report is prepared following our initial discussion and completion of the stages mentioned previously. The purpose of an Investment Pre-Report is to confirm your objectives and requirements and to provide you with a clearly defined outline of the services that we will be providing.
It is also an essential tool to ensure that our understanding of your objectives and requirements is correct and will include; details of any existing relevant investments, a summary of your investment risk profile and capacity for loss, details of our investment research and advice process and an outline of the options available to you.
The Investment Pre-Report will also provide you with details of our services & fees and how to proceed to the next stage of the process should you wish to continue.
An Investment Pre-Report is not a personal recommendation as it contains generic information only.
Investment Fund Selection
We select the appropriate risk rated Model Portfolio in accordance with your attitude to investment risk, investment timescale and typical asset allocation model created during the risk profiling process.
We outsource the construction of our Model Portfolios to Morning Star OBSR who are an independent investment research and consultancy business with one of the largest and most experienced fund research teams in the UK market. Please see below for more information.
There may be occasions when changes are made to the OBSR Model Portfolios, where client circumstances or other matters dictate and any fund additions (or deletions) will be made based on our own independent investment research.
Where you have existing investments we will review these and compare them to your attitude to investment risk, investment timescale and typical asset allocation model created during the risk profiling process. We will advise you if any changes are necessary.
The composition and performance of each OBSR Model Portfolio is monitored and reviewed by Morning Star OBSR on an ongoing basis and the composition of future OBSR Model Portfolios will vary accordingly. We generally recommend that clients upgrade to the latest version of the appropriate OBSR Model Portfolio(s) at plan review dates to ensure that their investments reflect any such changes.
We use a number of independent research tools to compare costs and other features and benefits between different products and investment platforms to ensure that the most suitable product is recommended.
Products that do not include funds identified during our selection process are automatically excluded.
When our research is complete we will send you a detailed Investment Report.
The Investment Report is a personal recommendation and will include full details of the recommended product(s) and investment funds and how they relate to your objectives, attitude to investment risk and capacity for loss.
You will also be provided with detailed investment statistics including Key Investor Information Documents.
Regular Investment Reviews
Regular reviews are essential to ensure that your investment portfolio remains on target to fulfill your long term objectives.
It is also possible that your personal circumstances may change and this may affect your objectives and requirements.
Before the review meeting we will prepare up to date valuations of your investments and will discuss their performance and your ongoing requirements etc with you during the meeting.
You will be invited to attend the first review meeting shortly after your investments have settled. During this meeting we will discuss the framework for future reviews which will normally be on an annual basis. Ad hoc reviews can also be arranged if required.
We generally recommend that clients upgrade to the latest Model Portfolio at plan reviews to ensure that their investments reflect any changes made by OBSR.
The cost of an annual review is normally covered by our ongoing account administration fee. However should an additional fee apply we will confirm the reason for the fee and the amount payable in writing to you prior to obtaining your instruction.
Morning Star OBSR
Morning Star OBSR is an independent investment research and consultancy business with one of the largest and most experienced fund research teams in the UK market.
OBSR was founded in 1999 to provide high-quality fund and product research services. In 2010 OBSR was acquired by Morningstar, a leading provider of independent investment research in North America, Europe, Australia and Asia.
Since 1999 OBSR has been renowned for its rigorous, objective and independent research. Morningstar has been providing qualitative analyst research on funds since the late 1980s.
Morningstar OBSR combines the strength of rigorous research and ratings with extensive consultancy expertise. To reinforce its services that help advisers and providers of financial services navigate changing regulatory environments, Morningstar OBSR draws on Morningstar’s broader global resources, such as one of the largest investment databases in the industry.
eValue provides market-leading stochastic modelling solutions to the financial services industry that integrate risk profiling and in-depth fund research with portfolio review and construction tools. As an independent thought leader in the field of financial planning and stochastic modelling, eValue solutions enable us and our clients to stay ahead of market trends and optimise long term investment strategies.
Past performance is no guarantee of future returns. The value of investments may go down as well as up and you may not get back the amount invested. For stocks and shares ISA’s tax-free means free of Income and Capital Gains Tax in the hands of the investor. Future tax benefits may be different to those prevailing today. In addition to the investment risk outlined above, the unit price of international funds can fall due to currency exchange rate fluctuations.
We endeavor to match our investment recommendations very closely to a client’s attitude to investment risk and make every effort to ensure that this is the case. Please note however that all investment funds carry a greater or lesser degree of risk and this also applies to all funds and portfolios whether they are referred to as cautious, venturous or anywhere in between.