Most people face investing money with mixed feelings of excitement and trepidation whether the investment is a second property, investing Pension or ISA money or straight forward investments for income or growth.
We question ourselves as to whether the investment is being made at the right time, in the right sector, with the right investment manager. We at ProAktive understand this and certainly know the pit falls of investing money.
This is why we advocate a well diversified structured approach with a view to maximising returns on deposit accounts, with investments in diverse markets to minimise risk and maximise returns dependent on your tolerance to risk. We also believe that due to the ever changing economic outlook it is vital to review investments.
Step 1 The Beginning
The first step in the investment process concentrates on gaining a thorough understanding of your personal circumstances, financial objectives and attitude to risk via a comprehensive fact find and Risk Profile Questionnaire.
This is an important stage in the investment process, for the outcome will help to determine your attitude to risk and the recommended investment strategy.
We work closely alongside you to fundamentally ensure that an accurate profile is built and an investment strategy adopted that you feel completely comfortable with.
Step 2 Asset Allocation
When it comes to risk and reward, asset classes will all behave quite differently; asset allocation looks at strategically investing money in a number of different financial instruments that together can help protect against volatility and maximise potential returns.
This strategy focuses on the investor’s specific goals and circumstances to determine the appropriate asset mix to give the optimal blend of risk and reward.
Asset allocation is simply another method of diversification, essential for any well-balanced portfolio, which concentrates on getting the right mix of equities, fixed interest, property and cash to help maximise potential returns within the risk parameters identified for our clients. To do this, we utilise a highly sophisticated risk-modelling tool which, using the information gained from the Risk Profile Questionnaire, is able to accurately determine the risk-profile. With the risk-profile determined and asset allocation strategy in place, we can then recommend the most appropriate investment.
Step 3 Fund Selection
At the heart of our investment philosophy is the belief that each investor should have access to superior fund management throughout the lifetime of their investment.
Recognising that no single investment group can always hope to be the best in every sector at all times, fund selection is outsourced to Close Asset Management to ensure that investors are accessing only the very best fund management skills at all times.
Unit Trust Fund Choice in Association with Close Private Asset Management
We have now entered into a partnership with Close Private Asset Management Ltd (CPAM) to manage our Unit Trust Fund Choice.
CPAM are part of the Close Brothers Group, an independent listed merchant banking group founded in 1878, the second largest UK Quoted independent merchant bank by capitalisation. Their fund managers average experience is 15 years, giving the company extensive experience of the investment management industry.
CPAM is part of the asset management division, which is responsible for approximately £5bn of funds under management and the company specialises in providing a bespoke discretionary portfolio management service for a broad range of clients.
CPAM’s panel arrives from five research resources:
- Direct fund manager contact and visits
- In-house research/analysis and sector specialists
- 3rd party research and analyst presentations
- Information Management Systems
- Industry Experts and contacts
With this depth of knowledge, CPAM are able to choose the funds which are deemed to be most appropriate to you through asset allocation and most appropriate to the economic climate at that time. The choice of funds will change from time to time as a result of this advice from CPAM.
If, at any time, we believe that a fund management team is no longer offering the levels of excellence we insist upon, they will be replaced and you can feel comfortable that your investment is being continuously managed by a team of professionals committed to managing your portfolio.
Step 4 Management/Review Service
For some clients Active Management, using a fund of funds which invests in a basket of funds, rather than any singular holding, to achieve even greater diversification and continuous monitoring of asset allocation and rebalancing of the modelling tool if necessary, can be more appropriate, although this can attract higher costs.
With a universe of over 2000 funds to choose from, it has never been more important for these decisions to be made by investment professionals who have the relevant skills, industry knowledge, expertise and experience to pick-out the consistent performers. As no individual fund manager or investment group can hope to outperform all the time, investing in a selection of carefully chosen funds helps to spread risk. Funds are carefully selected by the fund management teams using extensive qualitative and quantitative research and analysis.
Where the full Active Management system is not appropriate, in addition to offering an annual review - including a review of attitude to risk which can change as circumstances change - we contact clients whenever any change is made to either the recommended Asset Allocation and/or the recommended funds and adjust the portfolio if required in accordance with individual client requirements.
We believe that reviewing and re-balancing is essential in today’s fast moving economic environment to ensure that the funds selected continue to outperform.
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