When discussing your attitude to risk you will answer a series of questions using
the risk questionnaire. The responses are collated and the information is presented
in a report, including an indicative asset allocation to assist together with your financial adviser in determining your investment needs.

It is important you and your financial adviser understand the level of risk you are prepared to take with your investments. The risk questionnaire has been developed to help your adviser understand this and assist in the design and recommendation of your investment portfolio. The results in the report will be used by your adviser alongside other information about you in order to generate your personal investment recommendations.

The value of pension and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Asset allocation is the mix of underlying asset classes held within an investment portfolio. Each asset class behaves differently because it has a distinct risk profile. To build a financial plan which is right for you, your financial adviser will take into account your attitude to risk and recommend an asset allocation accordingly.

Each asset allocation is made up of the following asset classes:

Commodities Commodity investments are useful in creating a diversified portfolio. Equities Investment in equities has long been the cornerstone of most investment portfolios, providing long-term scope for growth of both capital and dividend income. Equity performance tends, however, to be volatile in the short-term.
Hedge funds are an asset class that can provide returns uncorrelated to both bonds and equities. Many hedge funds are designed to capture market increases while at the same time offering protection against loss.

Commercial Property is an asset class that has re-established its importance in the 21st century. It offers the potential for long-term income and capital growth and is normally uncorrelated to equity markets.

Fixed Interest There is a wide range of fixed interest securities from low-risk short-term government bonds to high-risk long-term corporate bonds.
Bond investment can be useful counter-balance for equities because the performance of these two asset classes tends to have a low correlation i.e. they do not normally move in parallel.

Cash is often perceived as a risk-free investment but it is also a low-return investment. Historically, cash has given a return of close to zero, once the impact of inflation is taken into account.

All the risk profile descriptions associated with the risk questionnaire are described below. You should read these descriptions as you might find another description better describes your attitude to investment risk.
Risk Averse.  This suggests you are not prepared to lose any capital from your investment. You want the security of cash-based investments and understand that returns will be lower. However, these investments are not totally risk free as over the long-term the purchasing power of your initial investment could be eroded by the
effects of inflation.

Cautious.  This suggests you are a low risk investor prepared to take only limited risks with your money but generally accept that long-term capital growth cannot be achieved without some degree of investment risk. You are happy to invest some of your capital in funds across a well-diversified asset class spread, accepting moderate fluctuations in the value of your investment. You understand that investment returns cannot be guaranteed and you accept that you might get back less than you put in, especially in the short term.
Moderate.  This suggests you are prepared to accept some risk to get potential returns above inflation over the longer term but you want to limit the amount of your money in more risky investments. You understand that investment returns cannot be guaranteed and you accept that you might get back less than you put in, especially in the short term.

Dynamic.  This suggests you are prepared to accept a relatively high level of risk to get potential returns above inflation over the longer term but you want to limit the amount of your money in more risky investments. You understand that investment returns cannot be guaranteed and you accept that you might get back less than you put in, especially in the short term.

Adventurous. This suggests your aim is to be ‘speculative’ with your investments to provide high returns. You would invest in specific investments and asset classes in order to achieve this. The risk to your capital is high, and the value of the original investment may go down significantly as well as up significantly. Adventurous portfolios typically have a higher proportion in equities and various global asset classes. You understand that investment returns cannot be guaranteed and you accept that you might get back less than you put in, especially in the short term.

Aggressive. This suggests you have a very high tolerance to investment risk to provide the highest possible returns. You would invest in specific investments and asset classes in order to achieve this and you recognise that because of this the value of your investment may go down significantly as well as up significantly. The risk to your original capital can be extremely high.

We advise on all aspects of investment including Investment Bonds, Unit Trusts ,and Decressionary Fund management.

As part of our service we offer regular investment reviews,  let you manage your investments and consider whether your financial goals are still on track. They’re also a good way to discover if your needs have changed over time and whether you should change anything