Wealth Management
This year world investment markets have remained volatile, affecting virtually every type of asset you may hold. From a UK perspective, the causes include the threat of a double-dip recession, inflationary fears and latterly the European debt crisis. Of course, we don’t yet know how this will impact on us in the UK.
At Morris Owen we believe the old adage “it’s about time in the market rather than timing the market” remains as relevant as ever for most clients. Whilst market indices, such as the FTSE100, offer an indication of the sentiment for particular markets, they do not relate directly to specific companies in those markets. There are companies across the globe offering value for investors in the correct circumstances but it is notoriously difficult to time the markets correctly for quick wins.
For clients’ investments, the key aspect is to understand the goals and the investment time-frame as well as the level of risk they are willing to take. It is also vital to understand a clients’ capacity to accept short-term losses. Any decision to invest should only be taken after a thorough review of these factors and then consideration given to the various tax wrappers available such as ISAs, pensions, bonds and others to ensure the most tax efficient use of clients’ circumstances. Once this is known, the penultimate step is to build a portfolio to achieve the stated objectives.
We believe a diversified portfolio offers the best way to do this and should include a mix of cash, fixed interest, property, equities and other assets in varying degrees according to circumstances. The current volatile environment should offer the opportunity for the most respected fund managers to add value to a portfolio by continuing to deliver reasonable returns over the longer-term. It is important therefore to position a portfolio to protect against the negative impact of market turmoil and inflationary risks whilst still offering the prospect of capital growth at rates above either cash or inflation.
The final step is to regularly review both client circumstances and any portfolio, making necessary adjustments. One of the ways we achieve this is through our range of risk-rated Monitored Portfolios, which we review quarterly to ensure they take account of the changing economic situation. This is overlaid by client reviews, on at least an annual basis, to discuss changes in their circumstances. This combination helps us to closely monitor matters and ensure we remain on-track to achieve the client’s goals.
For more information please contact one of our Independent Financial Advisers on 01793 603900.
The views expressed in this article are intended as an indication only and should not be regarded as a recommendation to invest in particular markets.
This article originally appeared in the December edition of Swindon Business News
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