A powerful argument for asset allocation

Mr and Mrs Smith had accumulated about £750,000 in liquid investments, plus their main residence and a holiday home. Mr Smith had taken advice from various sources and had established a trust, primarily for tax planning purposes.

The Smiths had what they thought were straightforward aims. They wanted to have enough income to live comfortably regardless of their health. They were keen that their relations and some friends’ children should benefit on their ultimate demise.

Finding the right solution had so far proved frustrating and confusing. The media seemed to give inconsistent advice, friends all had differing opinions and their bank manager referred them to his seemingly expensive private banking arm.

The argument for asset allocation

We don’t profess to know which way markets are heading nor do we have the latest hot tip on which shares to buy.  We do believe in spreading your assets across a number of appropriate investments (asset allocation) and keeping the proportions allocated to those various investments in balance. We see this as just good common sense when it comes to reducing risk. It can also be a valuable tool to help you increase the return on your investments if you follow a disciplined process.

Now The Smiths benefit from our approach

They have a clear understanding about how their money is invested. The ongoing fees suffered by The Smiths’ old portfolio have been halved and they now receive one all encompassing valuation on a quarterly basis.