Our approach
Our investment management process
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1The first part of our process is to establish your
objectives and your attitude to risk; then we can establish an
appropriate Asset Allocation Strategy. This is an absolutely vital
part of portfolio management. The asset allocation is designed to
optimise the proportions allocated to the main asset classes such
as Equities, Bonds, Property and Alternatives such as Hedge Funds
and Natural Resources.
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2The next stage is to look at the most Tax
Efficient products to suit your personal circumstances; nobody
likes to pay more tax than is necessary. We can look at the full
range of products to advise you of the optimum solution.
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3Once we have determined the structure of the
portfolio we will then select the specific investments, mainly
drawn from our approved list of funds. However, other
recommendations may include investment trusts, hedge funds, VCTs,
structured products, or perhaps zero dividend preference shares.
All recommendations will have been carefully researched by our in
house team of analysts.
Our timescale is long term and so we will not usually
attempt to make market timing decisions. However, in the case of
large investments of cash we will normally phase the investments
over several months to reduce the risk of unfortunate market
timing.
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Discretionary Investment Management
We take all of the decisions. We notify you every time we make a
change in your portfolio, together with our reasons as well as the
more detailed six monthly reports. There are several benefits of
discretionary management, such as:
- Convenience - you do not have to be consulted
over decisions
- Speed of response - events move fast in
investment markets so it can be beneficial to take action
immediately if there is a change of circumstances
- Cost - our transaction fees are lower for
Discretionary Management
- Performance measurement - since we are taking
all of the decisions there can be no doubt about who is responsible
for performance
- Thematic Portfolios - we offer a number of
options of specialist portfolios, such as Absolute Return, Cautious
Growth.
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Advisory Investment Management
We make specific suggestions but you have the final say over
which investments are bought and sold.
This means that you can include your favourite shares or
override our recommendations if you wish.
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Reports
You will receive reports from us at six monthly intervals and a
contract note whenever a transaction is placed.
You can check the portfolio daily on the website and, of course,
you can contact your adviser whenever you wish.
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Charges
We have designed our charging structure so that it eliminates
potential conflicts of interest. It makes no financial difference
to us which type of security is held within the portfolios and our
transaction fees are designed to provide no incentive for us to
trade actively. With this type of structure you can be sure that
our motivation is simply a desire to maximise the long term value
of your portfolio.
Our standard management fee is 1% (+VAT) of the portfolio value
levied as 0.5% at six monthly intervals, but we rebate against this
any 'trail commission' that we receive from unit trusts and OEICs
(most of these funds pay us 0.5% per annum out of their annual
management fees). These rates are negotiable for portfolios in
excess of £1 million.
Transactions are charged at our 'Execution only' rates for
Discretionary portfolios and on the Advisory rate for Advisory
Managed.
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Custody
All investments will be held in the name of Pershing Nominees
Ltd unless it is more cost effective to use the Cofunds or Fidelity
fund supermarkets.
Pershing is a subsidiary of the Bank of New York.
Contact Investment Management
Please contact Julian Hall if you would like to discuss your
individual requirements and objectives.
Call 020 7189 9901 or email julian.hall@bestinvest.co.uk