Investment management. Tailor-made investment solutions

Transcription

1 Investment management Tailor-made investment solutions

2 ABOUT US Tilney Bestinvest is a leading investment and financial planning firm that builds on a heritage of more than 150 years. We look after more than 9 billion on our clients behalf and pride ourselves on offering the very highest levels of professional client service with transparent, competitive pricing across our entire range of solutions. Whether you and your family would like to have your investments managed by us, require the support of a highly qualified adviser, prefer to make your own investment decisions or want to take more than one approach, we can help. If you need assistance with your financial planning, including retirement planning, we also have a nationwide team of experts available. We have won numerous awards including UK Wealth Manager of the Year 2013, Best Wealth Manager for Investments 2013 and Stockbroker of the Year 2013 as voted by readers of the Financial Times and Investors Chronicle. However, we draw greatest pride from the fact that our biggest source of new business is personal referrals from existing clients. Headquartered in Mayfair, London, we employ almost 400 staff across our network of offices, giving us full UK coverage, and we combine our awardwinning research and expertise to provide a personalised service to clients whatever their investment needs. We hope that we can help you and your family and look forward to welcoming you as a client. CONTENTS 3 Welcome Peter Hall CHIEF EXECUTIVE 4 Our investment management service 5 Our investment philosophy 6 Constructing your portfolio 8 Our investment universe 10 Client service and charges 11 Expertise you can rely on Best Wealth Mananger of the Year 2013 Best Wealth Mananger for Investments 2013 Past performance is not a reliable indicator of future returns. 2 Investment management

3 Welcome. In today s global investment markets, keeping up to date with relevant news from around the world can be difficult for even the best-informed investor. As a result, an increasing number of our clients choose to delegate some or all of the day-to-day responsibility for the management of their affairs to our team of investment professionals. This team combines a wealth of investment knowledge and expertise with a friendly and approachable attitude that never loses sight of the position of trust we are being placed in. THE KEY FEATURES OF OUR INVESTMENT MANAGEMENT SERVICE A personalised service where a dedicated investment manager will professionally manage your portfolio in line with your pre-agreed objectives Our investment managers carefully review market developments, drawing on the expertise of our research department to select the right investments for your portfolio On average our investment managers have more than 15 years industry experience so you can be sure the advice you receive is based on a deep understanding of the markets and best-practice solutions For those with more complex financial needs, we offer an individual financial planning service. Working in partnership with both you and your investment manager, your highly trained financial planner will design a strategy to define and achieve your lifestyle and wealth goals, including retirement, inheritance planning and taxefficient investments You will benefit from regular investment reviews and face-to-face meetings with your investment manager and financial planner to ensure your portfolio continues to meet your changing needs. tilneybestinvest.co.uk info@tilneybestinvest.co.uk 3

4 Our investment management service Our investment management service has been designed to provide you with day-to-day professional management of your investments in line with a pre-agreed and regularly reviewed set of objectives. It enables you to delegate investment decisions to a known and trusted investment professional, safe in the knowledge that our sophisticated risk controls will ensure strict adherence to your needs. We have some of the most highly qualified and talented investment managers in the UK and they have been managing client portfolios for many years. When you choose Tilney Bestinvest, we aim to build a long-lasting relationship with you so your investment manager will begin by establishing a full understanding of your individual needs. This is the foundation for constructing a personalised investment portfolio that can meet those needs now and long into the future. Through regular investment reviews, we will ensure your portfolio remains suitable for you at all times and regular communication will ensure that you are fully informed of any change in our investment views. Whatever the future brings, you can be confident that your best interest is at the focus of everything we do. 4 Investment management

5 Our investment philosophy We believe consistently good investment performance requires a robust and disciplined process that is open and responsive to the needs of our clients. WE ARE ACTIVE ASSET ALLOCATORS We believe achieving the correct balance between the range of available asset classes is fundamental to producing superior risk-adjusted returns. At Tilney Bestinvest we invest a great deal of time and resource to the analysis of global economic and political events to help us determine the correct asset blend for all stages of the economic cycle. ASSET ALLOCATION SEEKING RISK ADJUSTED RETURNS A fully diversified portfolio smooths out returns over the long term. RETURN % Smoother Path WE BELIEVE IN THE PRINCIPLE OF DIVERSIFICATION We diversify portfolios across asset class, geography, region, sector, fund manager and single security. A typical portfolio will be constructed by combining different asset classes into a cohesive whole. Portfolios constructed in this way achieve the benefits of diversification by lowering volatility and risk associated with a single investment or investment type. Theoretical data for illustrative purposes only TIME Equities Diversified portfolio THE BENEFITS OF ASSET DIVERSIFICATION No one can predict which asset class is likely to be the best performer from one year to the next so it is important to spread your portfolio across a range of assets in order to increase exposure to opportunities, while also reducing risk WE PUT RESEARCH AT THE CENTRE OF EVERYTHING WE DO Higher Returns We believe better information leads to better decisions, from understanding our clients needs to analysing the available investment options. We employ a team of research analysts to identify, monitor and review investment opportunities across all major asset classes. Lower Returns WE DO NOT HAVE A STYLE BIAS We are always seeking the best source of risk-adjusted returns. For some clients, this is best achieved via funds and for others via individual equities. We have no bias to the use of funds, single securities or active and passive investments strategies. Each option is assessed on its merits and used in accordance with your needs. Corporate Bonds Cash Property Commodities Developed Equities Emerging Equities Government Bonds Hedge Funds Over an extended period equities tend to be the top-performing assest class. The value of your investment can go down as well as up and you can get back less than you originally invested. Source: Bestinvest WE ACTIVELY MONITOR RISK AT ALL TIMES Monitoring risk is crucial when managing a portfolio of investments. We ensure the level of risk taken is appropriate and remains consistent with your investment objectives, however volatile markets may become. Over many years, we have developed our own proprietary systems to assess volatility and monitor the risk we are taking when managing your portfolio. tilneybestinvest.co.uk info@tilneybestinvest.co.uk 5

6 Constructing your portfolio Constructing a portfolio involves choosing a range of investments that will achieve your objectives at a level of risk that you are comfortable with. Key to this process is asset allocation. At Tilney Bestinvest, we use our in-depth knowledge of investments to create a portfolio that is individual to you. UNDERSTANDING YOUR NEEDS AND ANALYSING AVAILABLE INVESTMENT OPTIONS We work with you to identify your investment objectives and goals, and assess your attitude to risk. Together we will review all of your options and decide on the best way to achieve your objectives. For many clients, this part of the process includes consideration of your overall financial position in order to ensure optimum tax efficiency. BUILDING YOUR PORTFOLIO We use strategic asset allocation models as a framework for constructing your portfolio. These models are set by our Asset Allocation Committee, a senior team of investment professionals that regularly reviews the outlook for world markets and forecasts for individual asset classes. Portfolio models are then adjusted to align with your individual requirements. We have always believed that managing portfolio risk is best achieved through active asset allocation across equities, bonds and other asset classes. This top-down strategic overview is complemented by shorter-term tactical asset allocation to make the most of specific opportunities and guard against risk. The combination of strategic views and tactical tilts ensures that our clients benefit from our core investment themes as well as current best ideas. MONITORING PERFORMANCE AND CHANGING NEEDS Your investment manager will adjust your portfolio in line with our strategic and tactical asset allocation. This enables us to respond proactively to changes in market valuations. On a regular basis, we will review progress with you, ensuring that your portfolio continues to meet your needs. You will receive six-monthly valuation statements and can view your portfolio online at any time. EXAMPLE PORTFOLIO EXAMPLE PORTFOLIO ASSET ALLOCATION GEOGRAPHICAL EQUITY SPLIT CAPITALISATION EQUITY SPLIT Equities 42% High Yield Bonds 4% Quality Bonds 28% Other Assets * 21.5% Cash 4.5% UK 52% Europe 16.5% North America 17% Japan 4.5% Asia Pacific 7.5% Other 2.5% Large Cap 67.5% Mid Cap 20% Small Cap 12.5% For illustrative purposes only. * Comprised of hedge funds, commodities and property. 6 Investment management

7 AN ONGOING SERVICE 1 UNDERSTAND your needs What do you want to achieve? 5 MONITOR performance and changing needs Have your objectives changed? Research 2 ANALYSE available investment options What is your personal tolerance for risk and volatility? Are your objectives achievable within those tolerances? 4 IMPLEMENT recommended solution We make ongoing asset allocation changes in response to market conditions. 3 BUILD your portfolio We create the most efficient solution for you at the optimal level of risk necessary to meet your goals. tilneybestinvest.co.uk info@tilneybestinvest.co.uk 7

8 Our investment universe Having agreed the most appropriate asset allocation, we aim to construct a balanced portfolio selected from the widest range of investments. INVESTMENT VIA FUNDS For many, the default investment option will be the use of collective investment vehicles. At Tilney Bestinvest we research the widest possible range of unit trusts, OEICs and investment trusts, seeking to identify those managers that consistently add value. We employ a range of sophisticated analytic tools to assist us in the manager selection process. Where we cannot identify active managers who consistently outperform their sector, we use investments that track the performance of the sector at lower cost such as index funds and exchangetraded funds. Investments via funds offer the following advantages: DIVERSIFICATION Funds offer diversification which reduces stock-specific risk. They make it easier to achieve international diversification, which is crucial in a global economy. EASY ACCESS Funds allow you to access investment strategies and asset classes that are not always available to private investors, such as hedge funds and emerging markets debt. TAX-EFFECTIVE Funds offer significant tax benefits. Unlike a private investor, fund managers can buy and sell shares without incurring Capital Gains Tax, so they can take profits and reinvest without having to worry about the tax implications. DIRECT INVESTMENT IN EQUITIES AND BONDS For those clients with sufficient capital, we offer the option of achieving their UK and international exposure to both equities and bonds through direct investment into the wide range of companies analysed by our research team. Investing directly will increase stock specific risk, a source of portfolio volatility, but has the advantage of: LOWERING COSTS Investing directly into single equities and bonds can reduce overall portfolio running costs. ALLOWING A MORE TAILORED INVESTMENT PORTFOLIO Direct investment into equities and bonds enables a tailored selection policy for individual client requirements. Examples of common requirements are exclusions of specific stocks or sectors for technical or ethical reasons, positive bias such as growth and recovery and also targeting of specific aspects of a market such as yield or, in the case of bonds, duration. INCREASED VISIBILITY Direct exposure to equities and bonds has the potential to provide immediate access to ideas that originate from our research process and tactical thinking. Our analysts meet regularly with many of the companies that we research and we have a strong track record with respect to direct investments in both equities and bonds. Many clients also appreciate the ability to see exactly what the underlying constituents of the portfolio are. ALTERNATIVE INVESTMENTS As well as the traditional asset classes such as equities and bonds, we will also consider hedge funds, commercial property and commodity funds. Alternative investments provide access to sophisticated investment strategies typically designed for institutional investors. These investments are often less restricted and offer greater freedom for experienced fund managers to capitalise on opportunities. Historically, alternative investments have also tended to have a lower correlation with the equity and bond markets, which has offered increased diversification. Please remember, the value of an investment and any income derived from it can go down as well as up and you can get back less than you originally invested. 8 Investment management

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10 Client service and charges Our investment management service allows you to delegate the management of your portfolio to us. We will make all the day-to-day decisions and are fully responsible for performance. THE SERVICE OFFERS: A dedicated investment manager with whom you can build a long-term, trusted relationship Regular meetings to review progress The ability to check your portfolio online A tax report showing all gains, dividends and income received Statements every six months, with personalised commentary Proactive contact when there are major changes to legislation or when new opportunities arise WE CAN HELP WITH THE FOLLOWING TYPES OF ACCOUNTS: Pensions (SIPP, SSAS and corporate schemes) ISA portfolio management Personal (taxable) portfolios Joint portfolios Offshore bonds Offshore (Jersey) portfolio Charity portfolios Trust portfolios Companies/institutional portfolios Private OEICs FINANCIAL PLANNING For those with more complex financial needs, we offer an individual financial planning service. Working in partnership with one of our highly trained financial planners, we design a strategy to help you define and achieve your lifestyle and wealth goals, including retirement, inheritance planning and tax-efficient investments. CHARGES Tilney Bestinvest charges an annual management fee based on the value of your portfolio, and there is no initial set-up fee. Our charging structure ensures that our investment decisions are based on investment merits. 10 Investment management

11 Expertise you can rely on At Tilney Bestinvest, we offer advice you can trust from professionally qualified experts. Our investment managers have an average of more than 15 years industry experience so you can be sure the advice you receive is based on a deep understanding of markets and best practice solutions. But it is not just about time in the job our team has a commitment to broaden its skills and learn new ways to add even more value for our clients. Tilney Bestinvest is fully authorised and regulated by the Financial Conduct Authority. Our investment professionals are all Members or Fellows of the Chartered Institute for Securities and Investment. Many of our investment professionals have undergone additional training in specialist areas of finance to ensure our clients benefit from the best possible advice. tilneybestinvest.co.uk info@tilneybestinvest.co.uk 11

12 NEXT STEP Call us on or tilneybestinvest.co.uk The Tilney Bestinvest Group of Companies comprises the firms Bestinvest (Brokers) Ltd (Reg. No ), Tilney Investment Management (Reg. No ), Bestinvest (Consultants) Ltd (Reg. No ) and HW Financial Services Ltd (Reg. No ) all of which are authorised and regulated by the Financial Conduct Authority. Registered office: 6 Chesterfield Gardens, Mayfair, W1J 5BQ. TBIMG IMPORTANT INFORMATION Please remember the value of all investments can go down as well as up. In particular, different funds carry varying levels of risk depending on the geographical region and sector in which they invest. This guide does not constitute personal advice and if you are in any doubt as to the suitability of an investment please contact us.