Portfolio Creation

The assets classes we would normally look at when building your portfolio are:

Cash

An important component of a portfolio that provides you with financial flexibility and spending money for your short-term needs – although historical returns have lagged behind those of other asset classes, long-term.

Fixed interest

These securities offer a fixed amount of interest every year, helping reduce the level of risk within your portfolio.

Equities

Equities offer the potential for both capital growth and income, historically outperforming the other main asset types over the long-term. Short-term, however, values can fluctuate significantly.

Alternative asset classes

To control risk and enhance returns, we can use alternative asset classes, for example, commercial property, life settlements and commodities – each of which have particular characteristics that we use to contribute to your portfolio as appropriate.

‘Three Pot’ approach

Our understanding of your personal circumstances, your Lifetime Cashflow, and our own extensive investment research will determine which asset classes are the most appropriate and the proportion of your assets that should be invested to fill each of the following needs. In other words how to best divide and allocate your portfolio of assets into the following ‘pots’:

Short-term (0-2 years)

The money you need for everyday living costs or emergencies. This is usually held in cash.

Medium-term (2-5 years)

What you are likely to spend over the next few years, for things like a new car, children’s education. This is usually held in cash and short-term fixed interest securities.

Long-term (5 years +)

This is investment for long-term needs such as retirement. These are allocated according to your needs, time horizon, and attitude to risk.