Investment Portfolio Management
The key to success in managing an investment portfolio is making use of top-quality independent advice, and making regular reviews of your investments.
Many investors have learned to their cost that investment markets change, and by neglecting to constantly monitor and update your investments, you risk losing out, if your funds suddenly fail to perform. At Principle First, we monitor your investments on a regular basis, and you can also check your own investments online at any time.
Make an online investment enquiry now or call 0800 678 5929
Our investment portfolio management service is unique, personal, and tailored to you. Based on conversations with you, we build for you a tailored, dedicated investment portfolio which we manage for you on an ongoing basis. You can then rest easy in the knowledge that your money is working hard for you, and being constantly monitored by professional financial advisers. If you wish to check on how your investments are going, you can check their current value, online and around the clock, as often as you wish!
We also offer you the option to manage your own investment portfolio, by making new investments or switching existing ones, and when you need us, we are on hand with personal investment advice, at any time.
Click here to make an online investment enquiry now or call 0800 678 5929
Investor Risk Profiles
The first step in our investment portfolio management service is to evaluate your risk tolerance, i.e the level of risk you feel comfortable with in your investments. This is done with our Risk Profiler tool, which divides risk tolerance into six primary levels: very defensive, defensive, cautious, balanced, moderately aggressive and aggressive. Principle First has created a number of ‘Recommended Portfolios’ which offer a range of investments for each of these risk profiles. Our evaluation of each fund draws on ratings given by the top international rating agencies, backed up by our own research and performance assessments, which we regularly update.
The very defensive and defensive clients are most risk-averse, the cautious client slightly less so, but none of the three would be comfortable with considerable fluctuations in the value of their investments in the short term. These clients are likely to prefer low-risk portfolios majoring in cash, property, and gilts, with the cautious investor adding some investment in the UK stock market as well.
The balanced investor would accept the fluctuations that might arise from investing in the stocks markets, in the hope of above-average returns in the medium to long term. His portfolio might consist of a higher stock market element, with a range of UK and international companies, and UK corporate bonds.
The moderately aggressive and aggressive investors accept and indeed embrace fluctuations and a considerable amount of risk, and may see a fall in stock market values positively, as an opportunity to seek further investment opportunities. Their portfolios might include a large element of international equities including the ‘emerging markets’ of China and the Far East, while holding very little in cash.
Conditions for any fund or market sector will change over time, however. Our Recommended Portfolios are constantly reviewed and updated to ensure that their risk level has not changed, and the investments they include are still performing well. Regular reviews of our clients’ investments are a key part of the service we offer. Timing is crucial in managing investments, and we know that fine-tuning your investment portfolio in response to changes in the market is essential to maintaining balance and maximising returns. We keep our clients alerted, and advise when an investment should be switched.
Click here to make an online investment enquiry now or call 0800 678 5929
Types of Investments
There are many types of investment, each with its own advantages and level of risk.
Cash investments are generally low risk, and range from bank and building society accounts to the possibility of earning interest tax-free in a cash Individual Savings Account (ISA). From April 2010, the annual allowance for saving into an ISAs will rise from the current £7,200 to £10,200 each year.
A tax-advantaged investment in the stock markets is also possible through a stocks and shares ISA, although at a slightly higher level of risk than the cash ISA. From April 2010 you may invest all of your ISA allowance of £10,200 in a stocks and shares ISA, or invest half of that (£5,100) in the stocks and shares ISA and the other £5,100 in the cash ISA.
Funds Investments
The stocks and shares ISA offers the possibility of access to funds investments, even on a monthly savings basis. However, investment in funds can be made directly as well.
Funds such as Unit Trusts, Open-Ended Investment Companies (OEICs) and Investment Trusts pool the money of many investors, and allow it to be managed by a professional funds manager, who can reduce the risk by investing in a range of assets and investment types. Various asset types respond to market conditions differently. Bonds, for instance, tend to respond to market changes more slowly than stocks, whether up or down. As a result, bonds are often included in a funds mix to dampen the volatility of stock market fluctuations.
One type of fund that has become increasingly popular in the current climate of environmental awareness is the ethical fund. Ethical funds strive to invest only in products and companies which are not associated with controversial practices. These include animal testing, deforestation, meat production, nuclear power, pollution, tobacco products, military and weapons, and worker exploitation. Some ethical funds actively seek out companies involved in biodiversity, sustainable forestry, environmental products, green transport, charity work, renewable energies, and water management. As such, ethical funds give you the opportunity to add a moral tinge to your investment strategy.
Another type of investment that can form an important part of your portfolio is the investment bond. This is a life insurance policy, usually bought with a single premium, which invests your money in a fund matching your risk profile. The bond offers an annual income, as 5% of the original investment can be withdrawn each year, over 20 years.
Click here to make an online investment enquiry now or call 0800 678 5929
Investing for your children in your portfolio
The introduction of the Children’s Trust Fund scheme has created a whole new sector within the investment industry. There are now a wide range of Children’s Trust Funds available, where parents can invest the £250 government voucher received for every child born since 1st September 2002. The performance of these funds varies widely, and we monitor the market to recommend the best fund for you.
Click here to find out about investing for children now or call 0800 6785929
Your investment portfolio has many elements, and regular checks and re-evaluations are essential, to ensure that all is in balance. With our portfolio management service, you can monitor your investments when you like, and turn to us for advice, whenever you need it!
