Like many people, our clients had been saving into Stocks & Shares ISAs for a number of years, building up a sizeable portfolio which was spread over a number of investment companies and funds. However, they had become confused by the number and variety of funds held and were concerned about the level of risk within the portfolio.
We prepared a detailed review of their holdings and noted that, as is often the case in such situations, some of the investments had performed well but others had not. We also established that many of these funds were invested in the same asset classes and underlying companies, resulting in a poorly diversified and therefore high risk portfolio. It was clear that there was no “joined up” or properly balanced investment strategy.
As part of our review, we discussed our clients’ attitude to investment risk with them and their plans for these funds. As a result, and as there is no Capital Gains Tax on transferring ISAs from one provider to another, we suggested moving to a structured “risk-based” portfolio which is much more widely diversified to reduce risk. This type of portfolio is managed within a set risk/reward profile and will be reviewed and rebalanced on a regular basis to take account of changes in investment conditions.
As a result of our review, our clients are now comfortable with their investments, confident that their portfolio will be carefully managed to meet their chosen risk profile and that underperforming funds will now be identified and replaced. Our investment process aims to maximise returns for a given level of risk so that our clients can be more confident of achieving their financial goals.
We will also be meeting with them on a regular basis to review the progress of their investments and to consider any changes in their requirements.