INVESTMENT MANAGEMENT. Investment Management Services

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1 INVESTMENT MANAGEMENT Investment Management Services

2 World class team JLT Investment Solutions employs over 60 people. Our entire focus is on investing our clients money. We are based in Exeter, Bournemouth, London, Manchester, Leeds and Edinburgh, providing our clients with local access to our investment expertise. JLT Investment Management is part of this team. Every single client has access to their Investment Manager, who has on average 19 years of experience Our service JLT Investment Management provides a discretionary management service which means that we are empowered to take and implement investment decisions in line with the investment objectives agreed with you, but without having to seek your prior approval. Your portfolio will consist of a range of collective investments (unit trusts and open-ended investment companies) carefully researched and selected to deliver your investment objectives. Please note we do not provide a personal financial planning service as this is available elsewhere within the JLT Group. For this reason, and because we specialise in investments rather than life assurance products, we offer what is known as a restricted service. However when choosing investments for your portfolio we do so from the whole of the relevant market without restriction or bias.

3 Your future financial health depends upon how your investments perform. The JLT Discretionary Management Service works with your Professional Adviser to help you navigate challenging markets to meet your financial goals. Your personal account You will have your own personal and confidential account. We will work with your Professional Adviser to ensure your investment manager understands your individual circumstances and will invest your money in a way that reflects your investment objectives and your attitude to risk whilst taking account of your tax position. You can, of course, view your account on line at any time and we will send you regular statements to keep you up-to-date with how your portfolio is progressing and provide you with everything you need for tax reporting. Edinburgh Leeds Manchester Exeter London Bournemouth

4 Our approach to investment Quite simply, this is the key to our success. We have built our investment process around the needs of our clients. Our objective is to create long term wealth for our clients in line with their financial objectives. Investments are a personal affair each of us has our own set of circumstances, which may be influenced by the period of time over which we can invest or the degree of risk we can afford to take. Some investors are keen to build wealth; others are more interested in preserving what they already have, either for their own eventual needs or for another generation. But whatever your outlook, all portfolio strategies have two fundamental requirements they must at the very least give the prospect of outperforming inflation (the cost of living ) over the investment period and they must recognise that, to stand the chance of making extra gains, it s necessary to take some extra risks. We begin by establishing the extent to which you wish to break the inflation barrier. We take into account your appetite for risk and your capacity for loss and we ask if you have an immediate need for income. We can build your portfolio using many different types of asset. For example, Index Linked Gilts are guaranteed by the Government and can give a return that will just beat the rate of inflation. But investing all your assets in this way could involve an opportunity cost, because other investments such as Equities (company shares) and Property (Commercial or Residential) are likely to give significantly better returns over the long term, though at the cost of volatility and the risk of loss. We also consider investment assets such as Conventional Gilts (effectively interest-paying loans to the Government) and Corporate Bonds (loans to companies, which are riskier and therefore pay a higher rate of interest). We may invest some of your assets in overseas equity and bond markets as well as in the UK, in order to ensure that you have a well-spread portfolio of investments. Once we have arrived at an overall strategy suitable to your financial objectives, we make a detailed analysis of the investments available to implement it. We use collective funds such as Unit Trusts, Investment Trusts and Open-Ended Investment Companies. These give access to leading specialists in a particular field and, because each fund holds many different investments, a portfolio of collectives provides an additional layer of risk diversification. A portfolio made up of individual shares entails stock specific risk, meaning that performance may be heavily influenced, for better or worse, by developments at a single company. But most investors don t seek this kind of excitement from their portfolio. A managed portfolio of funds can diversify this risk. Because each fund within a portfolio itself contains many investments, your exposure to the successes or failures at any one company is heavily diluted.

5 We invest in a wide range of different funds, some with broadly based investment mandates and some with specialist objectives. We select the funds that we believe offer the best investment opportunities at any given time. We may, for example, emphasise a particular geographic region such as the United States, or a promising investment area such as biotechnology or commodities. By using funds we can therefore expose your portfolio to attractive investment opportunities around the world, while reducing the risk inherent in holding individual shares. Like the majority of investment managers, we have our own Core List of favoured holdings, from which we build our portfolios, aimed at achieving the most common investment objectives. There may be particular factors that mean we must stray from the Core List. For example, very commonly a portfolio has large capital gains from long-standing holdings, or the client has particular investment requirements. Nevertheless, in these and other cases, we will endeavour to bring as much of the portfolio as possible into line with the Core List as soon as we can. We pride ourselves not just on our common sense approach and on the thoroughness of our research, but also on our willingness to stand back from the crowd. Many investment decisions nowadays are consensus driven, motivated by a fear of being wrong. But following the crowd, simply by investing in line with the stock market index for example, brings risks of its own. There will be occasions when an index strategy makes sense and, if so, we will adopt it, but there will be other instances when it could turn out to be a costly mistake. The results of our work will typically be distilled into a concentrated portfolio of funds. Between them, they will give the exposure to economies, asset types and individual investments that reflects our view of the appropriate balance of investments to meet your investment objectives. The breadth of our coverage and the depth of our experience give us the ability to add real value to your managed portfolio of funds. This leads on to another key aspect of our investment process the fact that it is continuous. Understanding your financial objectives and investment strategy at the outset is an essential part of our service and so is building an initial portfolio aimed at meeting them. But nothing agreed at that point is cast in stone and nor should it be. The investment background will change, as will our view on particular funds, requiring us to adjust the portfolio from time to time so as to keep ahead of events. Also, your financial objectives may alter, for example as you move progressively closer to a point at which you want to crystallise your investments and draw a secure income, in which case we will need to restructure your portfolio.

6 Rigorous investment process We believe it is essential to have an investment process that concentrates on three key areas and maximises the benefits to our clients. 1. Asset Allocation Our approach to asset allocation is rigorous and in-depth, formed of three layers... Firstly, our overall Asset Allocation committee meets formally every month to consider everything that occurs in world markets. They review equities, fixed income and alternative asset classes too. This produces a framework of overweight and underweight positions on which client portfolios are based. This process ensures the very best thinking of our experienced asset allocation team gets into every client portfolio. Secondly, our investment managers meet monthly to discuss the Asset Allocation committee findings, considering any more recent views on markets and what changes to make to our private clients portfolios. Thirdly, every day the investment managers discuss and refine their views to ensure they remain wholly appropriate in these challenging investment times. As a result, timely and well considered asset allocation views are applied to your personal account. Every day our investment managers discuss and refine their views to ensure they remain appropriate in these challenging investment times.

7 2. Manager Research We have dedicated that research to the investment fund market. This ensures: we remain extremely close to the fund management firms we react quickly to any issues that might lead us to removing them from clients portfolios we are quick to pick up on new ideas that we can implement we can cover a very wide range of asset classes to ensure we can meet the needs of all our clients Our large client base ensures all fund managers provide us with all the access we need to assess their strengths and decide whether they are suitable for our clients portfolios. All new research ideas are discussed on a monthly forum chaired by the Head of Investment Solutions and attended by our Chief Investment Officer and all our investment managers. This ensures detailed due diligence occurs before any fund is approved for use in client accounts. 3. Portfolio Construction Our investment managers have on average 19 years of experience. They bring together the asset allocation views of JLT, our very best ideas from our investment research team and tailor these to suit individual client needs in such a way for each client that JLT s very best ideas get into all portfolios.

8 Investment Performance Our three key areas of concentration are critical to ensure we can deliver performance for our clients. Income Income may be reinvested or paid on a monthly, quarterly or half-yearly basis into your chosen bank account. Tax advantages As well as a stand-alone service, JLT s Discretionary Management Service can be used within a range of tax structures. These include: Self-Invested Personal Pensions (SIPP s) Small Self Administered Schemes (SSAS s) Individual trusts Charity accounts Individual Savings Accounts (ISA s) Offshore Bonds Where applicable the CGT position is managed to maximise tax efficiency for you.

9 Risk Factors Of course, all investments carry with them an element of risk. The value of your investments and the income from them can go down as well as up and is not guaranteed. Past performance is not a reliable guide to future performance and in some circumstances you may not get back the amount you originally invested. Your Professional Adviser will discuss this in detail with you before approaching us to manage your portfolio. Next Steps We would suggest an initial meeting for you, our Investment Manager and your Professional Adviser to discuss and agree how your investment objectives and attitude to risk might translate into a suitable portfolio. Formal paperwork can then be supplied. For further information please contact your Professional Adviser or visit our website at Fees The charging structure for the DMS includes transaction charges and an annual management fee as a percentage of the value of the overall portfolio. Full details are set out in our Terms and Conditions of Business and our DMS Factsheet.

10 JLT Investment Management The St Botolph Building 138 Houndsditch London, EC3A 7AW Tel +44 (0) Fax +44 (0) JLT Investment Management Limited. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No VAT No JLT IM /13