Weath­er­ing a storm

In un­cer­tain times, portfolio man­age­ment can help you weather mar­ket tur­bu­lence. Carl Lamb ex­plains how

EDP Norfolk - - YOUR MONEY - Carl Lamb, char­tered fi­nan­cial plan­ner at Smith & Pinch­ing This col­umn is spon­sored by Smith & Pinch­ing, Char­tered Fi­nan­cial Plan­ners. If you would like a no-cost ex­ploratory re­view to dis­cuss your plan­ning with an ad­viser, call to­day on 01603 789966 or

Be­ing a wise in­vestor isn’t just a case of pick­ing the right in­vest­ment el­e­ments for your portfolio and then let­ting it sit there. In to­day’s mar­kets, val­ues do go up and down and your best chances of a suc­cess­ful in­vest­ment strat­egy will come from be­ing pro-active. How­ever, most of us lack the skills and the time to mon­i­tor and adjust our own port­fo­lios.

Dis­cre­tionary portfolio man­age­ment is a ser­vice where in­vest­ment specialist­s do the job for you. They con­stantly watch mar­ket in­di­ca­tors so are then able to make in­formed de­ci­sions about the fu­ture per­for­mance of the con­tent of your portfolio and change its el­e­ments ac­cord­ingly.

It’s called dis­cre­tionary be­cause you give the portfolio man­agers the author­ity to use their dis­cre­tion to make what changes are needed… For many in­vestors, the most cost-ef­fec­tive form of portfolio man­age­ment is via model port­fo­lios. These are in­vest­ment port­fo­lios that are de­signed to align with a spe­cific risk pro­file that can be matched with the in­vestor. These port­fo­lios are reg­u­larly ‘re­bal­anced’ within the pa­ram­e­ters of the risk pro­file so are ad­justed as needed to maintain op­ti­mum per­for­mance.

At Smith & Pinch­ing, we have our own team of portfolio man­agers so our clients get portfolio man­age­ment as part of our core in­vest­ment ser­vice. We also have our own model port­fo­lios and we are con­fi­dent that there’s a suitable portfolio in our range for most in­vestors. In ad­di­tion to our stan­dard range, we also have ranges aimed at those look­ing for ethical

in­vest­ments, low charge and pas­sive investing. The pas­sive range com­prises funds which aim to repli­cate per­for­mance of a bench­mark in­dex, rather than try­ing to ac­tively buy and sell in or­der to out­per­form it. This ap­proach re­duces un­der­ly­ing man­age­ment costs and it is there­fore the cheap­est range.

Clients who in­vest in our model port­fo­lios re­ceive quar­terly val­u­a­tions of their in­vest­ments to­gether with mar­ket com­men­tary de­tail­ing what has changed within their hold­ings and why.

We also of­fer a more be­spoke ap­proach with the use of in­di­vid­ual be­spoke dis­cre­tionary man­aged port­fo­lios. These port­fo­lios are cus­tomised to the in­di­vid­ual’s re­quire­ments and cir­cum­stances and are ac­tively man­aged on a daily ba­sis.

Our portfolio man­agers will adjust the in­vest­ment mix as nec­es­sary within the risk and pref­er­ence pa­ram­e­ters agreed with the client.

Mar­kets look set to re­main volatile for some time. We be­lieve that portfolio man­age­ment will play a key role in en­sur­ing that clients’ in­vest­ments can weather any storms ahead. N

Any opin­ions ex­pressed in this ar­ti­cle are sub­ject to change and not ad­vice. Any solution de­scribed may not be suitable for every­one. The value of an in­vest­ment and the in­come from it could go down as well as up. The re­turn at the end of the in­vest­ment pe­riod is not guar­an­teed and you may get back less than you orig­i­nally in­vested. The tax treat­ment of in­vest­ments de­pends on in­di­vid­ual cir­cum­stances and is sub­ject to change.

ABOVE: You can take steps to make the most of your portfolio

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