The following process reflects our approach to carrying out personalised
advice but also applies to how we have selected funds for our hand-made
portfolios and top rated funds.
If you have any queries about our processes, please do not hesitate
to contact us.
Step
1 - Risk Analysis
Using our Risk Profiler, we determine your attitude to risk. You can
do this online here and we have also put together our Recommended
Portfolios for each risk profile to help with your investment choices.
As pensions are more of a long-term investment, you generally can
allow for more risk.
Work out your Risk Profile here & view your Recommended Portfolio
Step 2 - Asset Allocation
The key to ensuring clients receive the maximum potential growth with
their investment portfolio is to ensure their money is invested in
sectors that suit their risk profile. From your risk profile, we identify
suitable asset classes to invest your money. The percentages of funds
we allocate to different asset classes is also determined by your
risk profile.
However advice is key at Principle First. From time to time we will
avoid certain sectors due to overall poor performance or negative
market conditions as market conditions can change.
To ensure clients receive up to date advice and better returns on
their investments, we will avoid certain sectors if required.
From your Risk Profile we identify suitable investment sectors. These
sectors are assessed regularly by Principle First investment advisers.
Step 4 - Fund Selection
Once a suitable sector has been ascertained, we examine funds within
that sector.
Our Research & Fund Selection Criteria:
Each fund is analysed based on:
Volatility (risk)
Past Performance
Industry Ratings (see below for more detail)
Industry
Ratings
The independent companies who issue the industry ratings are given
access to information from the fund managers that wouldn't normally
be available for general viewing. In some cases the fund manager will
not give access and as a result they are given no rating.
S&P Rating - assesses a company's Claims-Paying
Ability, i.e. its financial capacity to meet its insurance obligations.
S&P forms its opinion by examining industry-specific risk, management
factors, operating performance and capitalization.
MorningStar
Rating - The MorningStar RatingTM is a quantitative
assessment of a fund's past performance - both return and risk - as
a measurement from one to five stars. It uses focused comparison groups
- MorningStar Categories - to better measure management skill. The
rating is also adjusted for all sales charges and exit fees to reflect
actual returns received by the investor.
Crown
Rating - The Financial Express Crown Ratings are a quant-based
ratings system designed to highlight funds that have had superior,
consistent performance in relation to risk, relative to their peer
groups, the fund sectors as defined by the IMA and the ABI. Crown
Ratings are compiled using three key measurements of a funds performance
- alpha, volatility and consistency.
Old Broad
Street Research Limited (OBSR) - Research Approach &
Methodology - uses an investment research approach that has been in
place since 1994. The emphasis is on looking forwards, not backwards;
and for this reason, we place a great deal of importance on the qualitative
aspects of our research. Our conclusions are nonetheless informed
by detailed statistical (quantitative) analysis. This means we are
aware of past results rather than driven by them and we use the information
to validate our qualitative research.
Many funds may have an element of high, medium or low risk investments
held within them, however, overall their risk rating is reflected
above. It may therefore be necessary when considering individual investments
that reflect your attitude to risk, incorporating a small proportion
of low, medium or high-risk funds.
Step 5 - Recommendations
Based on all the above we will recommend suitable funds for the future
growth of your investments.
Or if you have gone down the route of investing online, our recommendations
are reflected in both our Recommended Portfolios and our Top Rated
Funds.
Step 6 - Ongoing Pension Management
We continually monitor the values of your pensions, and will make
further fund recommendations if we feel it is necessary.
Additionally you will have 24 hour access to our client area, where
you can monitor you pensions' values, compare them to industry averages
and produce charts and fact sheets to help you gauge their performance.
Chartered Financial Planners - Principle First Financial
Services are one of the few Independent Financial Advisers to achieve
Chartered Status in the UK - a reflection of our professionalism and
dedication to providing the highest level of customer service and
financial planning, including wealth management and inheritance tax
planning.
Principle First Financial Services is a trading style
of GMF Marketing Services Ltd. which is authorised and regulated by
the Financial Services Authority. Principle First Financial Services
is entered on the Financial Services Authority's register under reference
number 409667.
PAST PERFORMANCE IS NOT A GUIDE TO FUTURE RETURNS & INVESTMENT
RETURNS MAY FALL AS WELL AS RISE - Risk Profile must be clarified
before proceeding with any pension advice.
Volatility (risk)
